Construction of next-generation eco-friendly car carrier fueled by LNG and start of domestic LNG fuel supply business

Kawasaki Kisen Kaisha, Ltd.

Outline

Kawasaki Kisen Kaisha, Ltd. (“K” Line) placed an order for a car carrier fueled by LNG (liquefied natural gas)* with Imabari Shipbuilding Co., Ltd. as a next-generation car carrier with reduced environmental load. Construction has been started and expected completion will be in the autumn of 2020.
In addition, four companies, including our company, will start the first LNG fuel supply business in Japan in 2020 in the Chubu region, and will play a key role in infrastructure development for low carbon emissions and environmental impacts.
Further, "K” Line and Namura Shipbuilding Co., Ltd. have joint AIP (Approval in Principle) for the concept design of an LNG-fueled Ore Carrier.

* LNG reduces CO2 (carbon dioxide) emissions by about 25 to 30%, SOx (sulfur oxides) by 100%,
nitrogen oxides (nitrogen oxide) by about 80 to 90%, respectively, compared with conventional fuel oil. It is
attracting attention as a potential alternative fuel with less environmental load.

Description

Due to ever-increasing high environmental awareness, our study of LNG fueled vessel has been accelerating. With the support of the "Model Project for Maximize Reduction of CO2 Emissions from LNG fueled Vessels" a joint project between the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism of Japan, came to materialization.

In 2015, we formulated a long-term environmental management vision called the "K" LINE Environmental Vision 2050 “Securing the Blue Seas for Tomorrow,” with the aim of minimizing all environmental impacts generated by our business activities. In the Vision, we have set the goal of "Reducing CO2 emissions by half" and "Replacing majority of energy currently consumed with new energy sources," and as part of our initiatives toward those goals, this LNG fueled ship will be a next-generation eco-friendly car carrier to realize them.

By building LNG-fueled car carriers, we are actively responding to a wide variety of transportation needs from customers both domestic and overseas, while responding to the growing need for environmental friendliness, and contribute to a sustainable society through safe and high-quality transportation.

In addition, for the spread of LNG-fueled vessels, the development of LNG fuel supply infrastructure at the port is a bottleneck, ”K”Line, JERA Co. Inc., Toyota Tsusho Co., Ltd., and Nippon Yusen Co., Ltd. (hereinafter referred to as “four companies”) has decided to launch the “Ship-to-Ship Bunkering”* business. Central LNG Shipping Co., Ltd. (CLS), a joint venture owned by the four companies concluded a shipbuilding contract with Kawasaki Heavy Industries, Ltd. for one ship supplying LNG fuel to operate as the first domestic LNG fuel supply ship in the central region in Japan from late 2020.

We also have concluded with FueLNG Pte Ltd. (FueLNG), headquartered in Singapore, a ship management agreement for the 7,500CBM LNG fuel supply ship that FueLNG will own, and operate, and carry out all commercial operations for this Singapore’s first LNG fuel supply ship from late 2020.

Further, ”K” Line and Namura Shipbuilding Co., Ltd. have joint AIP (Approval in Principle) for the concept design of an LNG-fueled Ore Carrier from DNV GL, classification society in Europe.

While CO2 emission reduction rate for LNG fuel is about 25-30%, it is possible to further reduce emissions by using various energy-saving devices, wind power, etc.

＊Ship-to-Ship Bunkering
A method of bunkering where an LNG Bunkering vessel comes alongside an LNG Fueled vessel to supply LNG at different locations such as along the quayside, pier or at anchor. Compared to the equipment fixed to the quay, it can cover a wider area with more flexibility.

Partner(s)

・the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism
・JERA Co. Inc., Toyota Tsusho Co., Ltd., and Nippon Yusen Co., Ltd.
・FueLNG Pte Ltd.
・Namura Shipbuilding Co., Ltd.