bp and NYK Line, a large shipping and logistics company, signed a memorandum of understanding to collaborate on decarbonizing the shipping industry and heavy industrial sectors, bp said on Wednesday.
The companies will work together on marine fuels, such as biofuels, LNG, hydrogen and ammonia, and explore participation in supply chains for ammonia and hydrogen for heavy industry and power generation.
'For shipping, the companies will collaborate and identify opportunities to help transition from current marine fuels to alternatives such as LNG, biofuels, and methanol and to develop future fuels such as ammonia and hydrogen,' bp said.
Switching to less carbon-intensive fuels is critical in enabling the shipping industry to meet its long-term decarbonization ambitions.
The International Maritime Organization, the UN body that regulates the shipping industry, has set a target to cut the sector's carbon emissions in half by 2050 compared to 2008 levels, with the aim of eliminating them altogether.
For other hard-to-abate industrial sectors, the two companies will explore the use of ammonia and hydrogen to be used in heavy industry and power generation to help those sectors decarbonize.
By Zeynep Beyza Kilic