PETALING JAYA: MISC Bhd
and Samsung Heavy Industries (SHI) have received approval in principle from French certification company Bureau Veritas Marine and Offshore (BV) for their pioneering design of the world’s first ammonia-fuelled long-range two or LR2 tanker, powered by proton exchange membrane fuel cell technology.
The approval is part of a strategic joint development project involving MISC, SHI and BV.
BV is a global leader in inspection, certification and laboratory testing and aims to ensure high standards, while promoting environmentally sustainable practices.
The design incorporates a proton exchange membrane fuel cell system that is powered by ammonia, which is converted into hydrogen through an ammonia cracking system to facilitate propulsion and power for large commercial vessels.
MBSB Research has maintained a “buy” call on international maritime corporation MISC with an unchanged target price of RM8.13.
In a report, MBSB said the approval signifies a noteworthy achievement for the group and its consortium partners in the development of the advanced technology.
In addition, the technology offers multiple benefits, including zero direct emissions, thus aligning with global initiatives spearheaded by the International Maritime Organization aimed at transitioning the shipping sector towards net-zero emissions by 2050.
“This approval in priciple from BV attests to the technical feasibility of this innovative concept and confirms its initial compliance with applicable rules, industry codes and standards,” the research house said.
Additionally, MBSB said the participation of SHI, which is one of the world’s largest shipbuilders, will contribute essential technological expertise to the consortium, thereby enhancing the long-term prospects of MISC.
“We make no changes to our earnings estimates for MISC at this juncture. The company’s diversified portfolio in energy-related maritime solutions, strong commitment to sustainability, and sound financial position underpin our ‘buy’ recommendation, reflecting the positive prospects and long-term stability of the maritime industry.
MISC’s president and group chief executive officer Zahid Osman said in a statement the collaboration is the catalyst for maritime transformation.
“This approval is the result of combining our strengths and challenging conventional boundaries to transform sustainability aspirations into tangible progress,” he said.
MISC serves as the ship owner and operator, leading vessel operations, commercial feasibility studies and market adoption strategies.
SHI contributes its shipbuilding expertise, overseeing vessel design, system integration and engineering development.
At time of writing, MISC’s share price was at RM7.27, giving it a market cap of RM32.45bil.
