SIMIC

Michele Labrut | Jul 18, 2022

Under the agreement the two companies will focus on developing and implementing new marine decarbonisation technologies suitable for EGA’s bulk cargo shipping routes in the eastern Atlantic Ocean, Mediterranean Sea, and Indian Ocean.

The solutions are likely to include kite systems, alternative fuels, and CO2 capture technologies. These technologies have still technical and practical challenges to widespread adoption that remain to be overcome, ranging from technology immaturity to lack of support infrastructure.

Related: K Line orders LNG-powered bulker fitted with Airseas kite

K Line will lead research into decarbonisation opportunities, and EGA will target pilot projects on its K Line shipping routes. The Japanese shipowner transports some 5m tonnes of EGA’s bauxite per annum from the Republic of Guinea to the UAE and 1.5m tonnes of alumina each year from Australia to the UAE, under long-term Contracts of Affreightment.

The global shipping industry is responsible for almost three per cent of world greenhouse gas emissions, according to the International Maritime Organization. Shipping accounts for a proportion of the emissions generated in EGA’s supply chain, known as scope 3 emissions.

 “Economy-wide decarbonisation will require cooperation between industries, and we are pleased to work with K Line Group on this important global challenge. Our long-term relationship with K Line Group provides an ideal platform to develop and test ways to reduce greenhouse gas emissions from shipping,” said Abdulnasser Bin Kalban, Chief Executive Officer of EGA.

“For EGA, our goal is to reach net zero greenhouse gas emissions not just from our own operations but also from activities in our supply chain. Improving the fuel efficiency of shipping could also reduce our shipping costs."

“Decarbonisation is an essential challenge for the shipping industry to meet the expectations of our customers and global society. This cooperation with EGA, which has been one of our most important customers for decades, will enable us to jointly make progress towards net zero for both our companies. It will also enable us to pioneer new approaches for the shipping industry as a whole,” commented  Yukikazu Myochin, President & CEO of K Line.