Companies shipping vehicles on MOL’s pure car carrier fleet of vessels using low-carbon fuels may claim GHG reduction values through a “Book and Claim” service after the shipping line received third-party certification from Nippon Kaiji Kyokai (ClassNK).
It has validated MOL’s methodology of calculating greenhouse gas (GHG) values resulting from the use of low-carbon fuels compared to a vessel running on fuel oil. Shippers can use this to claim GHG reduction points.
Automotive Industries (AI) asked Norio Abe, Executive Officer of Mitsui O.S.K. Lines, how many vessels in the MOL fleet use low-carbon fuels, and what their capacity is.
Abe: MOL has decided to launch 14 new LNG-fueled car carriers. Additionally, we can generate GHG reduction values with our conventional vessels by utilizing biofuels.
AI: Are these new builds or conversions?
Abe: At present, there are no conversions. We will generate GHG reduction values from either existing vessels or newbuilds.
AI: Which routes do they serve?
Abe: Given the financial incentives under EU regulations, we predominantly use LNG or BDF for Europe-related voyages.
AI: Is there a significant saving?
Abe: While we cannot precisely quantify the savings, we are endeavoring to increase our use of low-carbon fuels. Additionally, we would like to underscore that “additionality” is a subject of vigorous debate in Europe.
In alignment with these discussions, we have decided not to generate any B&C values from Europe-related voyages when utilizing the pooling or banking scheme under the FuelEU Maritime regulation.
AI: How can shippers calculate what GHG credits they may claim?
Abe: Shippers are not required to calculate the GHG values they may claim. Following verification by ClassNK, we will issue a certificate to the shippers, specifying the extent of GHG reductions they are entitled to claim.
AI: What is the process of booking slots on a qualifying vessel?
Abe: Our service is not structured to sell GHG reduction value per ton. Instead, we will present B&C freight rates to customers using our car carrier service.
AI: What are your plans for increasing the number of vessels and expanding the routes?
Abe: We have been gathering information on possible bunkering ports and suppliers for fossil-/bio-/e- LNG as well as BDF, which will influence our decisions on route expansion. With the aim of achieving net-zero emissions by 2050, we will also increase the number of alternative fueled vessels.
AI: Is there anything you would like to add?
Abe: MOL signed a Memorandum of Understanding (MoU) with Be Forward (the No.1 Japanese used car exporter) on 5 February concerning the Pure Car Carrier Book and Claim service for transporting used cars to Africa.
The contract term is five years from April 2025.
Be Forward has become the first user of our service, and through this initiative, we have committed to promote decarbonization in maritime transport.
This MoU will enable Be Forward, a company that transports used cars to Africa, to claim the greenhouse gas (GHG) reduction value associated with the use of LNG as fuel in MOL’s car carrier fleet as its own GHG reduction through certificate.
Be Forward website: https://www.beforward.jp/
A career focused on car carriers
Norio Abe was appointed Executive Officer of Mitsui O S.K. Lines, Ltd. (MOL) in April 2024. He is responsible for the Car Carrier Division as Deputy Director General of Headquarters of the Product Transport Business.
He joined MOL in 1992 and established his career mainly in the Car Carrier Division, now branded as “MOL ACE’’.
His experience includes ship operations, vessel chartering, sale purchase and tonnage control.
Between 2011 and 2017 he was assigned to New Jersey, USA as the Area Head of the Americas region of MOL ACE.
He returned to Tokyo in 2017, as Deputy General Manager of the Car Carrier Division, responsible for Fleet Planning and Cross Trades.
From 2019 to 2021, he was assigned to Hamburg, Germany, as MOL ACE Area Head of the Europe Africa region and Chief Country Representative of Germany.
Between 2021 and his current appointment, he was the General Manager of the Port Logistics Business Division, responsible for major logistics investment activities, including the sale and purchase of overseas container terminals and logistics companies.
He has also held multiple director positions in international logistics investments.
Abe graduated from the Faculty of Commerce Chuo University in March 1992 .
More Stories
From Assembly Lines to Autonomous Vehicles: The Role of Servo Controllers in Modern Automotive Production
Dry silicon composite by Blue Current is the next generation of battery technology
Buying Preowned: Benefits of CPO Automobile Buying