MSC, Eni team up on potential use of LNG and biofuels

Swiss shipping giant MSC Mediterranean Shipping Company has signed a Memorandum of Understanding (MoU) with Italy’s energy major Eni to explore the potential use of liquefied natural gas (LNG) and biofuels.

As disclosed, the partners intend to extend their business relationship to a broader geographic context and, in particular, to areas relating to sustainability and decarbonization of their operations.

Besides the use of LNG, they plan to explore the use of lower-carbon energy carriers, such as HVO and bio-LNG biofuels, as well as lubricants from renewable raw materials. The fuels would be used on MSC fleets dedicated to logistics and cruise transport. Furthermore, renewable energy solutions will be assessed to contribute to the decarbonization of MSC’s sites and facilities.

More generally, the agreement aims to create new synergies between the operations of the two companies, from logistics services to intermodal transport, covering both agro-industrial activities for the production of raw materials, including agri feedstock, for biorefining, and the storage and transport of HVO biofuels through the intermodal sea, rail, and road transport solutions.

Other evaluation areas concern the support for the decommissioning of national and international offshore platforms, joint research and development initiatives and collaborations in the open-ES framework, and the platform and system alliance launched by Eni for value-chain sustainability.

“There are many parts of our economic and industrial systems where we must act to reduce emissions. The only way to succeed is by uniting the skills, resources and technologies across a range of stakeholders, for a widespread intervention in each of these key areas. This agreement marks the start of our collaboration with MSC in the decarbonisation of transport and cruise services,” Claudio Descalzi, CEO of Eni, commented.

“At MSC we are focused on achieving a successful energy transition and to do this we need the partners we can trust and rely on. Eni has been one of these partners for many years and this MoU is a welcome and natural evolution of our relationship. We look forward to working more closely with Eni as we broaden and deepen our approach to sustainability and decarbonization across the MSC Group of companies,” Diego Aponte, MSC Group President, stated.

In alignment with its net-zero commitment by 2050, MSC has been a strong advocate of LNG as a marine fuel. Soren Toft, the firm’s CEO, said that MSC’s fleet renewal strategy includes 100 dual-fuel vessels. The shipowner also joined the SEA LNG coalition with the aim of collaborating with the organization on exploring the prospects of bio-LNG, particularly renewable synthetic LNG.

Recently, the shipowner signed a deal with Chinese shipyard Jiangsu Rongsheng Heavy Industries for the construction of up to twelve new LNG dual-fuel containerships. The price tag for the 12,000 TEU vessels is believed to be $170 million each, bringing the cumulative value of the deal to more than $2 billion.