Mitsui O.S.K. Lines, Ltd. (MOL) makes strategic investment in Ascension Clean Energy
Leading global shipping company latest shareholder in planned Louisiana clean hydrogen-ammonia
Jun 14, 2023
Baton Rouge, La. (June 14, 2023) / Tokyo (June 15, 2023): MOL Clean Energy, US, LLC (MCE), a 100 percent subsidiary of Mitsui O.S.K. Lines, Ltd. (MOL), and Clean Hydrogen Works, LLC (CHW) today announce MCE as a Joint Venture shareholder in Ascension Clean Energy (ACE), a proposed world-scale, clean hydrogen-ammonia production and export facility in Ascension Parish, Louisiana. Other shareholders are CHW, Denbury Inc., a world-leading carbon solutions provider with more than two decades of successfully managing carbon dioxide (CO2), and Hafnia, one of the world’s leading oil product tanker owners and operators.
Expected to produce 7.2 million metric tons of clean hydrogen-ammonia annually, ACE will help meet the rapidly emerging demand for affordable, secure, and low-carbon fuels and feedstock around the world. This clean energy will help decarbonize hard-to-abate sectors including power generation, bunker fuel, heavy transportation, steel processing and industrial applications.
“Clean hydrogen-ammonia is critical to decarbonizing the global energy market,” said Tomoaki Ichida, CEO, 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,” Ichida added.
As one of the world’s largest shipping companies, MOL is well-positioned to help develop safe, sustainable, and efficient solutions to ship ACE’s clean hydrogen-ammonia to emerging clean energy markets across the globe.
With a projected investment of $7.5 billion, ACE is expected to generate approximately 1,500 construction jobs over five years and 350 permanent, full-time jobs with an annual average wage of more than $116,000, once fully operational. ACE is expected to create an additional 626 jobs in Ascension Parish, along with nearly $2.2 billion in new sales in firms across Louisiana. The project provides an opportunity for local residents to be at the forefront of the clean energy transition and project shareholders are committed to working with the community and education leaders to provide pathways to additional training in support of these new job opportunities for the local workforce.
“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, CHW Senior Vice President and Chief Operating Officer, “MOL’s practical yet visionary approach to decarbonization 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.”
ACE is committed to achieving among the world’s lowest lifecycle carbon intensity by capturing up to 98 percent of CO2 emissions from its processes, as well as actively managing upstream CO2 and methane emissions. Helping reduce the world’s carbon footprint is a critical component in protecting our environment for future generations.
Project shareholders are committed to transparency and open, two-way communication with ACE stakeholders throughout this process and will work collaboratively to develop a project of which both the company and community can be proud.
About Clean Hydrogen Works (CHW):
Project majority shareholder, Clean Hydrogen Works (CHW), is a sustainability-focused, commercially oriented project developer with extensive experience in developing integrated energy value chains. Established in early 2021, CHW is led by an experienced team of project executives from leading global energy companies. Developing integrated clean hydrogen-ammonia value chains optimized for low-cost and low carbon, CHW is helping to meet the world’s growing energy needs with a secure, affordable, and sustainable energy supply at scale. Clean hydrogen and ammonia as a hydrogen carrier will play critical roles in the global energy transition by complementing renewables to decarbonize critical sectors including marine, power, industrial, and heavy transport. For more information, visit www.cleanhydrogenworks.com.
About Mitsu O.S.K. Lines (MOL)
Mitsui O.S.K. Lines (MOL) is a leading global shipping company operating approximately 800 ships across the world and is headquartered in Japan. MOL develops social infrastructure businesses centered on ocean shipping, with technologies and services to meet ever-changing social needs including environmental protection. The MOL fleet includes dry bulk ships, liquefied natural gas (LNG) carriers, car carriers, and tankers. In addition to its traditional shipping businesses, MOL also offers Wellbeing & Lifestyle Businesses including real estate, cruise ships, and ferries. MOL aims to become a global social infrastructure company, a strong and resilient corporate group that supports people's daily lives from the blue oceans, ensures a prosperous future, and delivers value to its stakeholders.
For more information, visit www.mol.co.jp/en/.
For further information, please contact:
MOL Media Contact
Media Relations Team
Corporate Communication Division
ACE Media Contact