Mitsui O.S.K. Lines (MOL) is exploring the possibilities to generate power from liquefied natural gas (LNG) aboard ships as a low-cost, environmentally friendly alternative to land-based plants.
According to a report on Nikkei, MOL is looking to supply LNG to ship-based power generators to create electricity
, delivering this to shore using underwater cables.
This is a cheaper alternative to building shore-based power plants and could have particular appeal in emerging markets, Nikkei says.
Compared with power plants on land, site acquisition and other initial costs can be kept low. The company is considering shopping the idea to emerging countries wary of the high price tag that comes with building power plants.
The environmental impact would be minimal since LNG does not emit much carbon dioxide.
MOL is looking to diversify beyond shipping, a business heavily affected by market conditions. It would take less than 10 years to enter the market, President Junichiro Ikeda said
. MOL restructured last month, setting up a dedicated offshore project division and a bunker business unit.