NYK’s Challenge for Green Shipping

© 2021. NYK Group. All rights reserved.© 2021. NYK Group. All rights reserved.

NYK’s Challenge for Green Shipping

20th May 2021

NYK Line

Green Business Group

Senior General Manager

Tsutomu Yokoyama

Japan-Norway Hydrogen Seminar 2021

© 2021. NYK Group. All rights reserved.

NYK Group Fleet and Facility

container ships58

capesize bulkers114

panamax bulkers92

car carriers111

tankers56

LNG carriers 78multi-purpose carriers41shuttle tankers28

others1cruise ships 1

FSOs 2drillship1

Vessel Air Freighter

aircrafts8flights5,227 in 2020

784

*For the year ended March 31, 2020

Terminal

ports21Operating at

in 2020

Logistics Center

locations609m23.1million

*As of March 31, 2020

vessels

FPSOs 3

Energy Division

155 handysize bulkers

wood chip carriers43

20th May 2021 NYK Line 2


Mid Term Strategy from 2018 to 2022

Staying Ahead 2022 with Digitalization and Green

Nippon Yusen Kabushiki Kaisha

Green Business Group was established on April 2019.New group aims to implement Green initiatives for driving future growth and value creation.

20th May 2021 NYK Line

Hydrogen Offshore wind power LNG marine fuel supply

World’s first LNG bunkering vessel Japan’s first LNG bunkering vessel

World’s first LNG-fueled car carrier

3


CHAPTER

© 2021 NYK Group. All rights reserved.

NYK’s Challenges for Green ammonia

2

4


Business development in LNG as marine fuel


Operating world’s first LNG bunkering vessel since 2017 in EuropeM/V Green Zeebrugge owned & operated by NYK. Operating Japan’s first LNG bunkering vessel since 2020 in Japan

Japan‘s First LNG-fueled Tugboat

World's First LNG Bunkering Vessel

Delivered in 2015 at NYK’s affiliated Shipyard.Operating in Tokyo BayLNG fueling of the vessel from a tanker truck was carried out for the first time in Japan.

Our challenges to create innovation

Truck to Ship bunkering (Japan 1st case)

Ship to ship bunkering (World & Japan 1st case)

World’s First LNG-fueled PCTC

Owned & operated by United European Car Carriers (JV btw NYK and Wallenius)Delivered in 2016 Japan’s First large LNG-fueled PCTC delivered in 2020


NYK transition plan (in Pure Car and Truck Carrier case)


NYK plans to convert PCTC fleet to zero emission vesselsin the next decade.

LNG fueled Zero Emission (mainly NH3 fueled)

Heavy Oil

LNG

NH3+α

LNG Bunkering vessel

Ship to ship bunkering(World 1st case)

55%


Challenges for introducing Ammonia fuel


CO2-free

AmmoniaCO2-free

Hydrogen NHRenewable Energy

Fossil fuel

SynthesisElectrolysis

EOR・CCS

Chemical reaction

EOR : Enhanced oil recoveryCCS : Carbon capture and storage

R&D Safety Fuel Cost Fuel Supply

Challenges in utilizing NH3 marine fuel

FUEL


R&D> Promoting Joint R&D projects


Project Partner Image

AFT(Ammonia-fueled Tug)

AFAGC(Ammonia-fueledAmmonia Gas Carrier)

A-FSRB(Ammonia Floating Storage Regasification Barge)

IHI Power Systems

NYK started three joint R&D projects from Aug 2020 for use of CO2-free ammonia as an alternative fuel for vessels.


Safety> Contribution in International Shipping


Other countries where ships call

Bilateral agreement between governments

Contribution to the realization of GHG reduction targetsthrough technical development of the Japan Maritime Cluster


Safety> Participate in the international discussion


From April 2021, NYK participated in the international safety council for adopting the guidelines for Ammonia using as a marine fuel.


Fuel Cost> Generation fuel comes first as large scale demand


Clean Fuel Ammonia Association on Oct 2020

Large-scale demand

for power

generation

Marine Engines


Fuel Cost> Ammonia Energy Council by METI


From Oct 2020 to Mar 2021, Japan’s Ministry of Energy, Trade, and Industry (METI) has formed a council to work on the implementation of ammonia as an energy commodity.

Private members:IHI, JERA, J Power, JGC, NYK, Mitsubishi Heavy Industries, Mitsubishi Corporation, Marubeni, Institute of Energy Economics Japan, Clean Fuel Ammonia Assoiation

Government / related organization members: Agency for Natural Resources and Energy / JOGMEC / JBIC / NEXI

1st meeting on 27th Oct 2020.Kono Senior Managing Executive Officer and Nakamura SGM participated from NYK.

In terms of both demand (fuel for power generation, marine fuel, etc.) and supply, an annual demand for NH3 in Japan will be 3 million tons in 2030 and 30 million tons in 2050.


Fuel Cost> Establishment of Ammonia Supply Chain

13Reference: DNV-GL

It takes a long time to finish “chicken & egg” situation when introducing a new type of marine fuel. 〈Example: LNG as marine fuel〉

3

Delivered LNG Bunkering Vessel 1

5

2

4

MV Green Zeebrugge(LNG Bunkering Vessel)

MV Sakigake(LNG Fuel Tug )

MV Auto Eco/Energy(LNG Fuel PCTC)

MV Kaguya(LNG Bunkering Vessel)NYK Related Vessel

【LNG Fueled Vessels (LFV) (excluding LNG carriers) ＆ LNG Bunkering Vessels (LBV)】

20th May 2021 NYK Line


Fuel Supply>Frequent fuel supply due to tank capacity


Heat Values

(MJ/m3) Compare with VLSFO

VLSFO 36.0 1.00

LNG 21.0 1.71

NH3 12.6 2.86

LH2 8.1 4.46LNG-fueled bulker vessel (Apr 2023 delivery)

LNG-fuel Tank

VLSFO: Very Low Sulfur Fuel Oil

Due to the physical characteristics of NH3,it is necessary to increase the size of the tank. Sacrifice cargo space/revenue.Otherwise, it is expected that the frequency of fuel supply will increase.

Building a marine fuel supply chain is essential for the decarbonization of shipping.


Fuel Cell ShipProject

Supported by

<Reference> Possibility of hydrogen as marine fuel


Vessel type Middle size sightseeing vessel

Maximum 100 people

LOA 25m

BEAM 8m

GRT 150 MT

FC Output 500kw

Fuel Type F/S in view of Liquified hydrogen

NYK also recognizes the possibility of hydrogen as marine fuel.We are proceeding “Fuel Cell Ship project” as Joint R&D with NEDO support.

NYK’s Challenge for Green Shipping

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