Mitsui O.S.K. Lines (MOL) and Karpower International (Karpowership) have agreed to collaborate in the LNG-to-Powership business.
The two companies aim to become the major LNG to Powership solution provider, under the brand name of KARMOL, MOL said in a statement on Friday.
The parties aim to co-invest in the related assets and joint market its solution in selected markets around the world.
The business will generate power through the Powership by receiving regasified LNG through a floating LNG storage and regasification unit to provide reliable electricity to shore grids and facilities where baseload electricity and/or replacements of fuel mode are required to meet the environmental concerns.
MOL noted that the significance of this KARMOL collaboration are very competitive initial Capex construction cost and fast track solution to provide LNG to power to create immediate savings for customers and to meet the power demand.
It also enables the replacement of higher emission fuels by LNG to reduce greenhouse gas emissions, with MOL adding that business synergy is assumed by combining both companies track records in their operations.
Hereafter, MOL and Karpowership will jointly promote the LNG-to-Powership solution to provide this solution in selected markets. The parties will aim to materialize several projects in the coming years.
The two companies have already started to convert an existing LNG carrier into a floating storage and regasification unit (FSRU) to provide regasified LNG to a Powership.