Japan’s Mitsui OSK Lines (MOL) and Singapore owner Hafnia have formed part of the shareholder base for a big new clean energy project in the US.
The shipowning pair has made a strategic investment in Ascension Clean Energy (ACE), a Louisiana-based green hydrogen-ammonia production facility.
MOL has teamed up with the main backer Clean Hydrogen Works (CHW) to become a joint venture partner.
BW Group product tanker company Hafnia has also taken a chunk of the stock, as has Denbury Carbon Solutions.
No financial details have been revealed.
The facility is expected to produce 7.2m tonnes of clean hydrogen and ammonia annually, including bunker fuel.
“Clean hydrogen-ammonia is critical to decarbonising the global energy market,” said Tomoaki Ichida, CEO of MOL Clean Energy (MCE).
“With this innovative project, MOL is investing not only for our future growth but also helping promote the development and adoption of clean hydrogen ammonia within our fleet and customer base,” he added.
ACE has a projected investment of $7.5bn and is expected to generate 1,500 construction jobs over five years.
There will also be 350 permanent full-time jobs with an annual average wage of more than $116,000 once fully operational.
Affordability and security
“With the rapidly evolving macro-environment, the world’s net-zero goals must be increasingly coupled with affordability and security of energy supply,” said Mitch Silver, chief operating officer of CHW.
“MOL’s practical yet visionary approach to decarbonisation will add critical capabilities and insights to support ACE in delivering on its mission to provide customers with affordable and large-scale clean energy solutions,” he added.
ACE aims to capture up to 98% of CO2 emissions from its processes, as well as actively managing upstream CO2 and methane emissions.
In March, MOL took part in a fundraising round worth $139m for US ammonia-to-power start-up Amogy.
The company is aiming to bring its fuel cell technology to shipping in 2024.
