Japan’s Mitsui O.S.K. Lines (MOL) has taken delivery of a newbuilding dual-fuel VLGC to serve a time charter contract for TotalEnergies subsidiary CSSA Chartering and Shipping Services, MOL announced on Friday.
Named Energia Grandeur, the vessel is designed to run on heavy oil and LPG. Operating on LPG can lower carbon dioxide emissions by approximately 20% and emissions of sulphur oxides and other pollutants by approximately 90%, according to MOL.
Built at the HD Hyundai Samho shipyard in South Korea, Energia Grandeur has a capacity of 88,000 cubic metres and is designed to transport both LPG and ammonia, a fuel that releases no carbon dioxide during combustion and whose demand is expected to grow as shipping and global industries transition to cleaner sources of energy.
To finance the vessel, MOL secured a transition-linked loan with interest rates and other conditions linked to the achievement of GHG reduction targets set by the company. MOL has resorted to similar financing arrangements in the past for the construction of other carriers.
TotalEnergies and MOL have an established business partnership that includes long-term charters for LNG carriers and LNG bunkering vessels, and maritime fuel trading.