MOL’s LNG pathway comes to life with new bioLNG supply deals

Japanese shipowner Mitsui OSK Lines (MOL) has signed two key bioLNG supply deals with European suppliers Axpo and Titan to expand its use of low-GHG methane on LNG-fuelled pure car truck carriers (PCTCs) operating in Europe.

The agreements, announced in early June, ensure MOL has a continuous and stable supply of bioLNG in Northern Europe and the Mediterranean region for its car carrier fleet. The bioLNG also has International Sustainability and Carbon Certification (ISCC-EU). This certification system, established under the European Renewable Energy Directive (RED III), verifies that sustainable fuels produced from biomass or waste comply with the EU’s legal requirements for sustainability and GHG emissions reduction standards.

Current production of bioLNG is limited, meaning shipping will have to compete with other sectors for supply. Additionally, it is more expensive than fossil LNG. But it reduces regulatory and financial exposure under the EU Emissions Trading System (EU ETS) and FuelEU Maritime.

“Securing access to low-GHG methane may require long-term offtake agreements, partnerships with fuel producers, or participation in emerging fuel value chains. Fuel procurement, therefore, becomes both a strategic and an operational consideration for shipowners,” explained DNV senior consultant Øyvind Sekkesæter.

DNV pointed out that as of late 2025, liquefied biomethane in the Port of Rotterdam was priced at around US$1,860 per tonne, almost three times the price of fossil LNG. However, when regulatory incentives are considered, most notably reduced exposure under the EU ETS and pooling revenues under FuelEU Maritime, biomethane can already be cost-competitive on selected EU-to-EU voyages.

Mr Sekkesæter is the lead author of the class society’s new white paper, Methane in Shipping, which discusses low-GHG methane’s role in keeping LNG-capable ships compliant. With tightening GHG intensity requirements, LNG-capable ships are well positioned to transition towards lower GHG emission fuels like bioLNG and e-methane (also known as synthetic methane) without major retrofits. The white paper explores the challenges of production and supply constraints for shipping and methane slip.

MOL adopts bioLNG

MOL was an early adopter of bioLNG for its PCTCs, first bunkering 500 tonnes of liquefied biogas in Celeste Ace supplied by Titan in the Port of Zeebrugge in 2025. Titan explained the ISCC-EU-certified bioLNG has a carbon intensity of less than zero on a life cycle basis from fuel production to consumption.

The feedstock for bioLNG is biogas captured from animal manure and food waste, which is purified and liquefied. Biogas is considered carbon neutral throughout its cycle from production to consumption because it absorbs CO2 from the atmosphere during its growth. Biogas enables methane – a powerful GHG gas that would have been released into the atmosphere from organic waste- to be recovered and burned.

According to MOL, the bioLNG supplied by Axpo and Titan will have a lifecycle carbon intensity of −15 g-CO2/MJ or less, from production through consumption. Replacing one tonne of conventional heavy fuel oil with this bioLNG fuel results in a reduction of approximately 4.5 tonnes of CO2 emissions.

MOL’s first vessel supplied under its contract with Axpo was Lapis Ace, with a ship-to-ship transfer operation conducted in the port of Barcelona. BioLNG was transferred to the vehicle carrier from the 7,500-m³ bunkering vessel Green Pearl.

Axpo verified in a statement to Marine Propulsion that it would supply bioLNG fuel to MOL across the Mediterranean, providing bunkering services at the Spanish ports of Málaga and Barcelona. “The agreement builds on our Western European partnership with MOL, which began in March 2025. Further details concerning the duration of the partnership cannot be disclosed,” said the company.