Japanese trio agrees LNG-fueled coal tankers deployment

Kyushu Electric Power has engaged in long term transport agreements with Nippon Yusen Kabushiki Kaisha (NYK) and Mitsui O.S.K. Lines (MOL) to deploy the world’s first LNG-fueled large coal carriers.

The vessels are expected to become the world’s first LNG-fueled large coal carriers, under the operation of NYK and MOL, to import coal to Kyuden’s coal-fired power plants, MOL said in its statement on Wednesday.

The use of LNG fuel is expected to virtually eliminate sulfur oxides (SOx) emission and reduce approximately 80 percent of nitrogen oxides (NOx) emission, as well as 30 percent of carbon dioxide (CO2) emission, in comparison with traditional marine fuels.

The LNG procured for Kyuden’s thermal power plants will be supplied to the vessels as fuel at the loading facility of Kitakyushu Liquefied Natural Gas, a 75 percent-owned unit of Kyuden.

The 95,000 DWT vessels are being built by the Oshima and Namura Shipbuilding, with deliveries scheduled for April and June 2023, respectively.