MoU Signed for Development of Commercially Viable Zero-Emission Vessels

Hong Kong, 11 May 2022

Pacific Basin Shipping Limited (“Pacific Basin” or the “Company”, 2343.HK), one of the world’s leading dry bulk shipping companies, has signed a memorandum of understanding (‘‘MoU’’) with Nihon Shipyard Co., Ltd and Mitsui & Co., Ltd to cooperate in the investigation and development of zero-emission vessels (‘‘ZEV’’) and investment in related bunkering infrastructure.

The International Maritime Organization (‘‘IMO’’) currently aims to reduce the carbon intensity of global shipping by 40% by 2030 relative to 2008, and to halve total greenhouse gas (‘‘GHG’’) emissions from ships by 2050. Furthermore, there is widespread pressure for industries to tighten their targets to align with the Net Zero by 2050 goal promoted at last November’s COP26. As a result, companies operating in the maritime industry will be required to replace traditional fuels currently used with substitutes such as ammonia and methanol, requiring the development of associated new engine designs, vessel designs and global bunkering infrastructure.

Nihon Shipyard Co., Ltd is a partnership between Japan’s two largest shipbuilders Imabari Shipbuilding Co., Ltd. and Japan Marine United Corporation. Nihon Shipyard focuses on the design, construction and promotion of eco-friendly ships for a zero-emission future.

Mitsui & Co., Ltd is one of the world’s largest trading companies with business operations spanning energy, machinery, chemicals, logistics and more. Utilising Mitsui’s extensive experience and scale, our collaboration will investigate alternative fuel bunkering options and associated infrastructure, while seeking mutual benefits in the ordering of zero-emission vessels. Mr. Martin Fruergaard, CEO of Pacific Basin, said: ‘‘we are excited to be partnering with these two leading companies on this initiative, who we feel offer complementary expertise and size, as we continue along our decarbonisation journey. Through this agreement, Pacific Basin will continue to be at the forefront of development within the industry, as we accelerate the transition and make zero-emission-ready vessels the default choice by 2030, and enable us to meet our target of zero emissions by 2050.’’

Mr. Hirose, Director, Chief of Sales and Marketing Division, Nihon Shipyard Co., Ltd, commented, “it is a great pleasure and honour to be working with leading companies in our industry to develop zero-emission vessels in anticipation of the maritime industries environment response to regulations to reduce GHG emissions by 2030 and 2050.”

Mr. Okamoto, COO of Mobility Business Unit II, Mitsui & Co., Ltd, commented, “we are very pleased to take part in the maritime industry’s green transition through entering this MoU with two of the leading companies in the industry. Energy solutions is a strategic focus area, and has been identified as a new growth opportunity that will contribute to decarbonisation through the reduction of energy consumption and GHG emissions. Through this collaboration Mitsui will contribute to the enhancement of people's lives and the creation of a sustainable society by developing essential social infrastructure to support sustainable growth and development.”

About Pacific Basin
Pacific Basin Shipping Limited (www.pacificbasin.com) is one of the world’s leading owners and operators of modern Handysize and Supramax dry bulk vessels. Enhanced by a world-class in-house fleet management team, the Company is committed to sustainable shipping with a keen focus on seafarer safety, health and wellbeing, responsible environmental practice, performance optimisation for best fuel and carbon efficiency, and best-in-class service delivery. The Company operates around 250 dry bulk ships of which 120 are owned and the rest chartered. Pacific Basin is listed and headquartered in Hong Kong and provides a quality service to over 550 customers, with about 4,600 seafarers and 365 shore-based staff in 13 offices in key locations around the world.

Pacific Basin Shipping Limited press release.