NYK Line, partners ink LNG fuelling deal to speed up decarbonization efforts
Japanese shipping major NYK Line has signed a memorandum of understanding (MoU) with compatriot fuel service provider Itochu Enex Co., gas company Saibu Gas Co. and energy company Kyushu Electric Power Company to work on the supply of liquefied natural gas (LNG) as a marine fuel to ships in western Japan.
As informed, the partners have decided to examine the commercialization of the LNG bunkering business in the Setouchi and Kyushu areas of western Japan.
Under the agreement, Kyushu Electric Power Company will explore marketing activities for its LNG-fueled coal carriers. The 95,000 dwt coal carrier that will be operated by NYK will feature a length of 235 meters and a width of 38 meters. It is scheduled for delivery in 2023.
Furthermore, the partners will also work on marketing business for the LNG vessels required for ship-to-ship supply.
“LNG fuel as a marine fuel is expected to be a bridging solution to next-generation zero-emission fuels such as hydrogen and ammonia. Compared to heavy fuel oil, the use of LNG can reduce emissions of sulfur oxides (SOx) and particulate matter (PM) by approximately 100 percent, nitrogen oxides (NOx) by as much as 80 percent, and carbon dioxide (CO2) by approximately 30 percent,” NYK Line noted.
The deal comes just two weeks after the Japanese shipping major partnered up with British oil and gas company BP to collaborate on future fuels and transportation solutions to help industrial sectors, including shipping, decarbonise.
For shipping, the companies will collaborate and identify opportunities to help transition from current marine fuels to alternatives such as LNG, biofuels, and methanol, and to develop future fuels such as ammonia and hydrogen.