Yahoo Finance Chevron & Mitsui Team Up to Install Wind Challenger on LNG Carrier
Chevron Corporation’s CVX subsidiary, Chevron U.S.A. Inc., through its unit Chevron Shipping Company LLC, has partnered with Mitsui O.S.K. Lines, Ltd., Tokyo-based Japanese transport company, to launch a groundbreaking venture aimed at revolutionizing the shipping industry. This collaboration focuses on installing the Wind Challenger, a hard sail wind-assisted ship propulsion system developed by Mitsui and Oshima Shipbuilding, on a newly constructed LNG carrier.
This partnership is part of CVX's broader mission to lower the carbon intensity of its global operations, pushing the boundaries of sustainable innovation. The vessel, set to be equipped with Wind-Assisted Ship Propulsion Systems, is currently under construction at the Geoje Shipyard of Hanwha Ocean Co., Ltd., delivery expected in 2026. This project represents a milestone for CVX and Mitsui, marking the world’s first LNG carrier fitted with wind-assisted propulsion.
The Wind Challenger is a cutting-edge telescopic sail system that uses wind to assist in the propulsion of large vessels like LNG carriers. This system has been designed to reduce fuel consumption and greenhouse gas (“GHG”) emissions. Its telescopic sails are particularly effective in capturing wind energy, reducing the need for conventional fossil fuel-powered engines and cutting down on carbon emissions.
With this innovative technology, CVX and Mitsui aim to contribute significantly to the maritime industry’s push toward sustainability. The sails themselves are robust, designed for durability and equipped with additional safety features, such as an enclosed navigation bridge and lookout stations, ensuring that the vessel remains safe and effective even in challenging weather conditions.
One of the most significant benefits of the Wind Challenger system is its potential to lower the carbon footprint of LNG shipping. By reducing reliance on fossil fuels, the system offers a practical way to meet the carbon reduction targets that are increasingly demanded by industry stakeholders and global regulatory bodies.
The use of wind power helps to reduce GHG emissions, a critical factor for CVX as it attempts to fulfill the company’s commitment to reducing carbon intensity. This technology allows Chevron to set an example in hard-to-abate sectors, offering a novel approach to decarbonizing an industry that has historically been challenging to shift toward more sustainable practices.
The Wind Challenger is not just about reducing emissions—this also boosts fuel efficiency. By integrating wind-assisted propulsion into an LNG carrier, CVX and Mitsui can reduce the fuel required to operate the vessel. This move not only saves on operational costs but also makes the shipping process more sustainable in the long term. As the global demand for LNG continues to grow, efficiency will be key in maintaining profitability while adhering to environmental standards.
Collaboration Between CVX and Mitsui
This project is a true testament to the strong partnership between CVX and Mitsui, both of whom have been leaders in the maritime and energy sectors for decades. Barbara Pickering, president of Chevron Shipping Company, has expressed her pride in this collaboration, highlighting that this is another instance of Chevron’s commitment to innovation and reducing carbon intensity in sectors that are typically harder to decarbonize.
By teaming up with Mitsui, CVX is not only investing in new technology but is also setting a benchmark for the global shipping industry, showcasing that sustainability and profitability can go hand in hand. Takeshi Hashimoto, president and CEO of Mitsui, also emphasized the importance of this project in achieving its Environmental Vision 2.2, which aims for net-zero emissions by 2050.
The Wind Challenger system has been meticulously designed to minimize its impact on the existing LNG carrier structure. This includes maintaining the current mooring arrangements and ensuring that the ship’s shore compatibility remains unaffected. Additionally, the system’s design focuses on minimizing its windage area, reducing potential resistance from strong winds and thus ensuring that the vessel remains tradable across global shipping routes.
With the first Wind Challenger-equipped LNG carrier set to be delivered in 2026, this project is expected to be a game-changer for the entire maritime industry. As more shipping companies look to reduce its carbon footprints and comply with increasingly stringent environmental regulations, technologies like the Wind Challenger will likely become more mainstream. This project is not just a step forward for Chevron and Mitsui, but a potential blueprint for the global shipping industry to follow.
The Wind Challenger technology will be showcased at the Gastech Exhibition & Conference 2024, held in Houston in September. In this exhibition, Mitsui will hold information sessions to explain how the Wind Challenger can be applied to LNG carriers and other vessels. The event will provide an opportunity for industry stakeholders to learn more about the technology and its potential applications in other sectors of the shipping industry.
The partnership between Chevron and Mitsui represents a significant leap forward in the maritime industry’s quest for sustainability. By combining Mitsui’s expertise in wind-assisted propulsion with Chevron’s commitment to reducing carbon intensity, this project sets a new standard for the future of LNG shipping. As the world moves toward net-zero emissions, innovations like the Wind Challenger will play a critical role in helping industries reduce carbon footprints while maintaining operational efficiency.
Zacks Rank and Key Picks
Currently, CVX has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like MPLX LP MPLX, sporting a Zacks Rank #1 (Strong Buy) and Vaalco Energy, Inc. EGY and Core Laboratories Inc. CLB, each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here
Findlay, OH-based MPLX LP is valued at $44.68 billion. In the past year, its shares have risen 25.7%. MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates under two segments, namely Logistics and Storage, and Gathering and Processing.
Houston, TX-based Vaalco Energy is valued at $579.92 million. The oil and gas exploration and production company currently pays a dividend of 25 cents per share, or 4.47%, on an annual basis. EGY is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.
Core Laboratories is valued at $797.52 million. The company currently pays a dividend of 4 cents per share, or 0.24%, on an annual basis. Netherlands-based CLB is an oilfield services company, operating in more than 50 countries. The firm deals with providing reservoir management and production enhancement services to oil and gas companies.
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