Friday 7 August 2020

TOKYO-Mitsui O.S.K. Lines, Ltd. (“MOL”, head office: Minato-ku, Tokyo; President & CEO: Junichiro Ikeda)(*1) and Karpower International B.V. (“Karpowership”, head office: Istanbul, Turkey; CEO: Orhan Remzi Karadeniz)(*2) today announced that the parties have agreed to collaborate in the LNG-to-Powership business (“Business”) to become the world’s most reliable and preferable LNG to Powership solution provider, under the brand name of “ KARMOL”. The parties aim to co-invest in the related assets and joint market its 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 reliable electricity to shore grids and facilities where base load electricity and/or replacements of fuel mode are required to meet the environmental concerns. Significance of this KARMOL collaboration are;

(1) Very competitive initial Capex construction cost and fast track solution to provide LNG to Power to create immediate savings for customers and to meet the power demand

(2) Replacement of higher emission fuels by LNG to significantly reduce greenhouse gas emissions

(3) Business synergy is assumed by combining both companies track records and excellence in their operations. MOL’s track record and expertise of LNG Carrier and FSRU business and Karpowership’s track record and expertise of Powership® business(*3).

Hereafter, MOL and Karpowership will jointly promote the LNG-to-Powership solution to provide this cost competitive and robust solution in selected markets. The parties will aim to materialize several projects in the coming years.