Japanese shipping company Mitsui O.S.K. Lines (MOL) and Turkey’s floating power plant company Karpower International B.V. (Karpowership) have agreed to collaborate in the LNG-to-Powership business.
Under the brand name “KARMOL”, the duo aims to become an LNG-to-Powership solution provider.
The parties aim to co-invest in the related assets and jointly market their 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 electricity to shore grids and facilities where base load electricity and/or replacements of fuel mode are required to meet the environmental concerns.
As explained, the new solution is expected to be cost-competitive, meeting the power demand. What is more, the new solution would significantly reduce greenhouse gas emissions by replacing higher emission fuels with LNG.
MOL and Karpowership expect to achieve business synergies by combining their expertise of LNG, FSRU and Powership businesses.
The companies plan to launch several projects in the coming years. They have already started to convert an existing LNG carrier into a floating storage and regasification unit (FSRU) to provide regasified LNG to a Powership.