Japanese firms join forces to build ammonia-fuelled car carriers

Seven Japanese companies have agreed to develop an ammonia fuel supply chain in Japan’s Chubu region and build and operate four ammonia-fuelled car carriers supported by the supply chain.

The agreement brings together shipowners Kawasaki Kisen Kaisha (K Line) and Nippon Yusen Kabushiki Kaisha (NYK), shipbuilders Imabari Shipbuilding, Kyokuyo Shipyard Corporation, Shin Kurushima Dockyard, Nihon Shipyard, as well as JERA, a company involved in fuel procurement and reloading facilities.

This project will be a comprehensive initiative to develop an integrated ammonia fuel supply chain, from the procurement of green ammonia and development of ship loading facilities to the construction of a dedicated bunkering vessel with fuel supply through ship-to-ship bunkering, and the operation of ammonia-fuelled car carriers, the companies announced on October 27.

Kyokuyo Shipyard will build an ammonia bunkering vessel, to be owned and operated by NYK or a wholly owned NYK subsidiary. The vessel is scheduled for completion in 2030.

K Line and NYK will also establish a fuel sales joint venture, equally owned by the two companies, to facilitate fuel sales and supply between vessels. Using a bunkering vessel owned and operated by NYK or a wholly owned NYK subsidiary, the joint venture will supply ammonia fuel to car carriers through ship-to-ship bunkering.

Under this project, K Line and NYK will each introduce two ammonia-fuelled car carriers, with all four vessels scheduled for completion in 2030. The vessels are expected to transport finished vehicles for customers including Toyota Motor Corporation.

The vessels will be equipped with dual-fuel engines capable of using ammonia as fuel, as well as fuel tanks with sufficient capacity to enable trans-Pacific voyages using ammonia fuel alone. They will also incorporate a multilayered safety concept, including measures to prevent and detect leaks and to neutralize ammonia in the event of a leak.

Shin Kurushima Dockyard will lead the basic design phase. The vessels will then be jointly designed and built by Shin Kurushima Dockyard, Imabari Shipbuilding, and Nihon Shipyard.

Under this project, JERA will procure green ammonia produced using renewable energy. These supplies are intended to come from regions including India.

In addition, JERA will develop new ship loading facilities at the ammonia receiving terminal adjacent to the Hekinan Thermal Power Station, which will establish a stable supply system for the bunkering vessel.

_{Source: K Line}