Tata Steel, Mitsui OSK Lines sign MoU to develop eco-friendly shipping line

The move by the country's oldest steel producer reflects its larger sustainability goal and effort to reduce greenhouse gas emissions in supply chain

Tata Steel today said it has signed a Memorandum of Understanding (MoU) with Mitsui OSK Lines (MOL), a global marine transport group, to develop and deploy environment friendly shipping solutions.

The move by the country’s oldest steel producer is in line with its larger sustainability objective and efforts to reduce greenhouse gas emissions in the supply chain, said the company in its release.

“The objective of the agreement is to reduce greenhouse gas (GHG) emissions in the ocean transportation of raw materials for production of steel. In the initial stage, the partnership will explore the environmental benefits and commercial and operational feasibility of various technologies,” the release quoted Peeyush Gupta, Vice President, Supply Chain, Tata Steel as saying.

MOL has been jointly studying the technology with cross-industrial partners and the first vessel is slated to start operation in 2022.

"We have recently established MOL Group Environmental Vision 2.1, wherein we have announced that MOL Group will make a concerted effort throughout the Group, to achieve net zero GHG emissions by 2050. There would be a long, long pathway to achieve the Vision 2.1, and we believe that working collaboratively with a good partner is important. The partnership with Tata Steel, a leading global steel company, encourages MOL to challenge goals for the Vision 2.1. We are very much happy to have this opportunity,” Toshiaki Tanaka, senior managing executive officer and chief environment and sustainability officer at MOL was quoted as saying.