MOL signs MoU with SMT Shipping for joint study of DRI transportation

Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto; Head Office: Minato-ku, Tokyo) announced the signing of a memorandum of understanding (MoU) for the joint study of ocean transportation of Direct Reduced Iron (DRI: Note 1) with SMT Shipping (Cyprus) Ltd. (SMT Shipping; CEO: Mark Voorham; Head Office: Cyprus, Note 2).

As the steel industry intensifies efforts to lower CO₂ emissions in response to climate change, there is significant interest in the use of DRI manufactured by reducing iron ore using natural gas or hydrogen by which CO₂ output is decreased when compared to that of blast furnaces using coal.

Marine transportation of DRI requires specialized skills and care to prevent overheating. SMT Shipping is a world leader in the carriage of DRI, while MOL has provided the global steel industry with marine transportation services for many years.

Under the MoU, MOL is committed to enhancing the transport capacity of DRI in order to address increasing demand with necessary safety measures in collaboration with SMT Shipping, thereby contributing to the steel industry’s efforts to reduce CO₂ emissions.

MOL will leverage its experience and expertise as one of the world's largest shipping companies to develop various social infrastructure businesses, technologies, and services, centering on ocean transport, to meet the needs of a wide range of customers throughout the group. It 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 new value to all of its stakeholders.

(Note 1) DRI is feed stock for steelmaking. It can be used in electric arc furnaces and blast furnaces.

(Note 2) SMT Shipping is a global maritime group of companies involved in shipping and transshipment of dry bulk cargo with a fleet of over 65 vessels operating worldwide