MOL Ocean Bulk Signs 25-Year Green Shipping Deal with Vale
MOL Ocean Bulk Pte Ltd has signed a 25-year contract with Vale International to transport iron ore using two 210,000-metric-tonne ore carriers equipped with the world’s first tri-fuel propulsion system capable of operating on ethanol, methanol and conventional heavy fuel oil.
The agreement represents a notable development in maritime decarbonisation, as the vessels are being designed around fuel flexibility rather than dependence on a single energy source. The approach could give the shipping industry greater scope to respond to differences in fuel availability, cost and emissions performance as the transition toward lower-carbon marine transport accelerates.
Mitsui O.S.K. Lines Ltd (MOL) announced on Friday, October 2, that its Singapore-headquartered subsidiary, MOL Ocean Bulk Pte Ltd, which operates the MOL Group’s overseas Capesize bulker business, had entered into the 25-year contract with Vale International, a subsidiary of Vale.
The two vessels are scheduled for delivery in 2030 and will primarily be used for the transoceanic transportation of Vale’s iron ore. At 210,000 metric tonnes each, they are intended for long-distance bulk cargo operations and will form part of Vale’s wider shipping decarbonisation strategy.
Their most distinctive feature is the tri-fuel propulsion system, which will allow the vessels to operate on ethanol, methanol and conventional heavy fuel oil. Rather than committing the ships to one alternative fuel at a time, the configuration provides operational flexibility as the availability and economics of different marine fuels develop.
The vessels will also have an LNG- or ammonia-ready design, creating the possibility of using either fuel in the future. They will incorporate a range of energy-saving technologies available for next-generation newbuildings, adding efficiency measures alongside their alternative-fuel capability.
For the maritime sector, this combination is significant because the transition to cleaner shipping is unlikely to follow a single fuel pathway. Fuel availability, infrastructure, lifecycle emissions and economic conditions will influence which options are practical on individual routes. A vessel capable of adapting to more than one fuel can therefore offer greater flexibility while the marine-fuel market continues to evolve.
MOL said ethanol could potentially reduce carbon emissions by up to approximately 90% compared with heavy fuel oil on a full lifecycle basis, covering the period from fuel production through consumption. The company also said ethanol has attracted growing attention as a renewable fuel and that its ease of handling could help streamline wider adoption in marine fuel applications.
From an industry perspective, the project illustrates a shift from simply identifying alternative fuels to designing vessels capable of accommodating changing fuel conditions. The tri-fuel system, combined with LNG- or ammonia-ready capability and energy-saving technologies, gives the ships several potential pathways for addressing future emissions requirements without relying exclusively on one technology.
The 25-year contract also places the vessels within a long-term commercial framework, linking iron ore shipping with the broader evolution of cleaner marine transport. As international shipping faces increasing pressure to reduce greenhouse gas emissions, the ability to balance environmental performance with fuel availability and operating economics is likely to become an increasingly important consideration for shipowners and cargo interests.
