Mitsui O.S.K. Lines (MOL), led by President & CEO Takeshi Hashimoto, is advancing in carbon removal. The Tokyo-based company is the first Japanese shipping firm to retire 2,000 tons of technology-based carbon dioxide removal (CDR) credits through the NextGen CDR Facility. These credits come from a biochar project in Bolivia, run by Exomad Green.
This move is part of MOL’s effort to back new carbon removal technologies that store CO₂ for a long time. While these credits don’t cut MOL’s emissions directly, they help tackle emissions at a societal level. This approach is called Beyond Value Chain Mitigation.
Technology-Based CDR Credits: High-Quality Carbon Removal Solutions
MOL secured CDR credits from tech-based solutions. Unlike traditional offsets like tree planting, these methods remove CO₂ through engineered processes. They include biochar, Direct Air Capture (DAC), and BECCS. In Bolivia, the biochar method converts biomass into stable carbon. This process locks carbon in the soil, enhancing both carbon removal and soil health.
These solutions are new and costly. Few companies invest in them now, but demand is rising as firms chase net-zero goals. By being an early buyer, MOL signals to innovators and helps scale these crucial technologies.
MOL stated that while tech-based credits are currently limited, interest is growing quickly. The company’s involvement builds trust. It also encourages more projects and helps create a strong carbon removal market.
Supporting Net Zero with the MOL Group Environmental Vision 2.2
This initiative supports MOL’s Environmental Vision 2.2. It aims for net-zero greenhouse gas (GHG) emissions by 2050. A key goal is to mitigate 2.2 million tons of CO₂ by 2030.
With its recent CDR credit retirement, MOL is moving closer to this target. The company views these purchases as essential for offsetting unavoidable emissions in the future and advancing overall decarbonization.
MOL’s carbon strategy is part of its broader sustainability plan- the MOL Sustainability Plan (MSP). It fits into the group’s management framework, BLUE ACTION 2035. This strategy highlights five key sustainability issues, including protecting oceans and the planet. They address these challenges as vital for long-term success.
NextGen CDR Facility: Backing Large-Scale Carbon Removal Projects
MOL’s CDR purchase was made through the NextGen CDR Facility, a partnership between South Pole and Mitsubishi Corporation. Founding buyers like Boston Consulting Group and UBS support NextGen’s goal to build a large, diverse portfolio of carbon removal credits.
NextGen has pre-purchased over 193,000 tonnes of carbon removal credits from various projects:
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1PointFive’s DAC Project (Texas): Will capture and store up to 500,000 tonnes of CO₂ each year.
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Summit Carbon Solutions (Midwest US): This $5.1 billion BECCS project will capture over 9 million tonnes of CO₂ yearly.
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Carbo Culture’s Biochar Project (Finland): Aiming to remove 2.5 million tonnes of CO₂ by 2030.
All credits will be verified under ICROA-endorsed standards to ensure quality and permanence.
MOL’s investment in Exomad Green’s biochar project supports NextGen’s larger goals. This project uses pyrolysis to turn biomass into quality biochar. It’s a tech-based way to remove carbon.
Carbon removal demand is growing, but the market is still developing. Technology-based CDR credits provide lasting carbon storage. They can last for centuries. This durability sets them apart from traditional offsets. Traditional offsets can reverse due to deforestation or changes in land use.
However, these solutions are costly and complex, keeping many buyers away. MOL’s early support can help reduce prices later, and it’s doing this by encouraging investment and innovation.
As a leader in the maritime sector, MOL is acting on durable carbon removal. The company aims to achieve net zero by cutting emissions and then actively removing them.
Driving Market Growth for Long-Term Carbon Storage Solutions
Mitsui expects strong demand for quality, long-term CDR credits. The market is growing rapidly. Projects like biochar, DAC, and BECCS are now essential. This is vital for sectors with hard-to-abate emissions.
MOL is actively taking steps to cut future emissions and support carbon removal, as it sees both as crucial to reaching global climate goals and building a low-carbon society. Thus, overall, by investing in technology-based CDR credits, it’s not only advancing its own sustainability targets but also accelerating the growth of a scalable market for climate solutions.
