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An agreement has been reached to launch a joint study into developing liquefied natural gas (LNG)-fuelled Capesize bulk carriers. The project partners are: BHP Billiton, DNV GL, Mitsui O.S.K. Lines (MOL), Rio Tinto, Shanghai Merchant Ship Design and Research Institute (SDARI) and Woodside Energy.

All participating entities signed a letter of agreement at a ceremony in Singapore on 20th January.

The joint research project, called 'Green Corridor', aims to reduce sulphur and nitogen oxide emissions from merchant ships and is to examine the technological and economic feasibility of an LNG-powered bulker.

"MOL Group continually takes a proactive approach to developing and adopting technologies that contribute to reducing environmental impact and enhancing safe operation, while providing safe and reliable transport services", project participant MOL said in a statement.

As previously reported by Bunker Index, construction of what is set to be the world's largest LNG-powered bulk carrier is in progress at the Hyundai Mipo Dockyard in South Korea. It is due to be launched in late 2017 and scheduled to start transporting limestone from Gangwon-do to Gwangyang as early as 2018.

The new bulker will be able to carry up to 50,000 tons of cargo. Currently, the largest bulk carrier powered by LNG fuel is able to store around 7,000 tons of cargo.

Meanwhile, ESL Shipping's two large LNG-fuelled bulk carriers are being built at Sinotrans & CSC Shipbuilding's yard in Nanjing, China. Due for delivery in early 2018, the two 25,600-deadweight-tonne (dwt) ships have type C LNG tanks with a capacity of approximately 400 cubic metres, enabling bunkering at several terminals within the Baltic region.