Major companies in the shipping industry have partnered to develop an ammonia-powered tanker to reduce carbon emissions.

MISC Berhad, Samsung Heavy Industries (SHI), Lloyd’s Register and MAN Energy Solutions have also joined the project.

The use of ammonia is expected to lead to emission reduction in the shipping industry.

The alliance aims to meet the International Maritime Organisation’s (IMO) 2050 Greenhouse Gas (GHG) emissions target.

Of the total CO2 emissions, international shipping accounts for 2.2%, while the aviation industry contributes 2%.

By 2050, IMO aims to reduce the industry’s greenhouse gas (GHG) emissions by half.

In an assessment in 2015, IMO said that carbon emissions from international maritime shipping could increase by 250% by 2050 if it left unchecked.

To meet the IMO deadline, the alliance partners believe that the maritime industry needs leadership and collaboration.

The alliance said: “The partners believe that the creation of such alliances will send a clear message that shipping can progress itself to fit times and circumstances ahead of regulatory action.”

MISC Berhad group CEO and president Yee Yang Chien added: “I am very glad that our distinguished partners have come together with MISC to showcase joint leadership in developing one of the pathways towards a zero-carbon future for the maritime industry.

“We need more shining examples of partnerships and collaborations in our industry and it is my hope that this will encourage our peers in the industry to also join hands with others to advance the zero-carbon agenda.”