Mitsui O.S.K. Lines, Ltd. - Experts & Thought Leaders

ABS issued an approval in principle (AIP) to pioneering Japanese companies at Gastech 2024 for two liquid carbon dioxide (LCO2) carrier designs with Type-C cargo tanks that do not require performing post-weld-heat-treatment based on the demonstration of an engineering critical assessment (ECA). ABS reviewed the drawings based on class and statutory requirements for the two designs, a 50K cubic metre carrier and a 23K cubic metre carrier, featuring Type-C cylindrical tanks made of carbon manganese steel that stows the liquefied CO2 with low-temperature and low-pressure. LCO2 critical characteristics This AIP is the result of extensive cooperation within a joint development project on the detailed design development, considering LCO2 critical characteristics. The project team included Mitsubishi Shipbuilding Co., Ltd.; Nihon Shipyard Co., Ltd.; Kawasaki Kisen Kaisha, Ltd.; Mitsui O.S.K. Lines, Ltd.; Nippon Yusen Kabushiki Kaisha; Mitsui & Co., Ltd.; and Mitsubishi Corporation. Decarbonisation and sustainability solutions “The safe transportation of CO2 plays a vital role in the carbon value chain, and ABS is proud to use our expertise as the world’s pioneering classification society for gas carriers to support this sector of the global energy transition,” said John McDonald, ABS President and COO. ABS is the world’s premier classification society for gas carriers with more than 50 years of experience, and ABS is pioneering the maritime industry in comprehensive decarbonisation and sustainability solutions.

DNV has awarded an Approval in Principle (AiP) to HD Korea Shipbuilding & Offshore Engineering (HD KSOE) for its electric propulsion liquefied hydrogen (LH2) carrier design concept that could enable 80,000 cubic metres of LH2 storage and transport. The AiP awarding ceremony will take place at Gastech, Houston. Maritime transportation value chain This milestone forms part of a broader collaboration involving industry pioneers, HD KSOE, Woodside Energy (Woodside), Hyundai Glovis, and Mitsui O.S.K. Lines (MOL), aimed at developing an integrated maritime transportation value chain for large-scale liquid hydrogen. The vessel is equipped with HD Hyundai's new large liquid hydrogen tanks featuring advanced vacuum insulation and an electric propulsion system with Hydrogen Dual Fuel HiMSEN engines, allowing flexible fuel use between diesel and hydrogen. Hull design and cargo handling The AiP from DNV verifies that HD KSOE’s electric propulsion LH2 carrier design concept complies in principle The newly developed hull design and cargo handling system is targeted to provide greater operational efficiency and commercial flexibility. The AiP from DNV verifies that HD KSOE’s electric propulsion LH2 carrier design concept complies in principle with the safety, environmental, and technical standards necessary for the safe and efficient transport of LH2.  HAZID and ENVID studies As part of this AiP project, DNV also conducted detailed and comprehensive Hazard Identification (HAZID) and Environmental Impact Identification (ENVID) studies, which are crucial for evaluating and mitigating potential risks associated with the design and operation of the electric LH2 carrier. Chang Kwang-pil, Chief Technology Officer of HD KSOE said, "This AiP from DNV is a crucial validation of our commitment to developing a reliable and cost-effective LH2 carrier." Hydrogen shipping supply chains Chang Kwang-pil adds, "Achieving this goal requires collective effort across the LH2 shipping value chain, and we are committed to driving progress through continuous collaboration and innovation." Julie Fallon, Executive Vice President of Technical & Energy Development from Woodside stated, "We have made clear progress in the pursuit of developing cost-effective and flexible large-scale liquid hydrogen shipping supply chains to support our customers’ needs, thanks to the investment and collaborative effort of all parties involved." Prevention and mitigation measures Tae Woo Kim, Senior Vice President of the Shipping Business Division from Hyundai Glovis, continued, "Through the collaboration with industry pioneers across the LH2 value chain, resulting in an AiP from DNV, we, as a ship owner, have gone through the process of identifying hazards, assessed risks and reviewed prevention and mitigation measures. This process will collectively guide and help us better protect lives, cargo, and the ship itself." Jotaro Tamura, Managing Director of MOL (Asia Oceania), Senior Management Executive Officer of Mitsui O.S.K. Lines noted, "We are very pleased with the progress made in the development of the LH2 carrier since we joined the project in February 2024." Global hydrogen economy Jotaro Tamura adds, "We would like to use our technical and operational knowledge, cultivated through many years of shipping experience, to contribute towards the establishment of a hydrogen supply chain continuously." Vidar Dolonen, DNV Regional Manager for Korea & Japan, stated, "The AiP is another vital step towards building a global hydrogen economy, through safer and more efficient long distance of LH2. DNV is honoured to be involved in this project and to support the development of cutting-edge energy solutions."

Watson Farley & Williams (WFW) advised an Asian financial institution as arranger, agent, security agent, and lender on a US$201.85 million sustainability-linked Japanese Operating Lease with Call Option (JOLCO) with Ocean Network Express Pte. Ltd. (ONE) as lessee and Financial Partners Group Co., Ltd. (FPG) as equity provider for two portfolios of container boxes comprising dry container boxes and reefer container boxes. Global container shipping company Singapore headquartered ONE is a global container shipping company with an extensive liner network service active in 100+ countries. It is jointly owned by Japanese shipping lines Nippon Yusen Kaisha, Mitsui O.S.K. Lines, and Kawasaki Kisen Kaisha (K Line). FPG is a Japanese company listed on the prime market of the Tokyo Stock Exchange and a JOLCO arranger in the maritime and aviation sectors. JOLCO structure The cross-border WFW Assets & Structured Finance team that advised on the deal was led by Hong Kong/Singapore Partner, Madeline Leong, supported by Singapore Associate, Andy Wilson and Trainee, Kate Clancy. Madeline Leong commented, "We’re delighted to have advised our client on this container box financing with a JOLCO structure. Being instructed on this matter showcases once again WFW’s expertise and experience advising on JOLCO and shipping transactions."