NYK announces the order of its sixth liquefied petroleum gas dual-fuel very large LPG / liquefied ammonia gas carrier from Kawasaki Heavy Industries Ltd. The ship will be built at the KHI Sakaide Works shipyard and is set for delivery in 2026.

This vessel is the eighth in NYK’s fleet of LPG-fueled LPG carriers and the sixth in a new type of vessel capable of carrying ammonia and thus flexibly responding to various trade patterns.

Furthermore, in addition to the LPG dual-fuel engine, the ship will have a shaft generator that can generate electricity during the voyage by using the rotation of the shaft that connects the main engine to the propeller. Since the diesel generator can be stopped during regular seagoing transit, realizing full navigation with LPG fuel will be possible except for the use of a small amount of pilot fuel as an ignition source.

When LPG is used as fuel, exhaust gas from the ordered VLGC will contain at least 95% less sulfur oxide and 20% less CO2 than NYK’s conventional VLGCs using heavy-oil fired engines.

This new VLGC will comply not only with the SOx Global Cap regulations* that were tightened from January 2020 but also with the IMO’s Energy Efficiency Design Index Phase 3 regulations, which implemented stricter CO2 emission standards from April 2022.

Moreover, the vessel is expected to be given notations by Nippon Kaiji Kyokai  as a VLGC that has a preparatory design in accordance with the guidelines issued by ClassNK so that this vessel may use ammonia fuel in the future.

Vessel Particulars

Length overall: approx. 230 meters
Breadth (moulded): 37.20 meters
Depth (moulded): 21.90 meters
Summer draft (moulded): 11.65 meters
Tank capacity: approx. 86,700 cubic meters

NYK supplied biodiesel fuel at Kinuura port to the wood-chip carrier Daio Austral, which transports wood chips for Daio Paper Corporation. This was the first oceangoing vessel operated by NYK to receive biodiesel fuel in Japan. The ship then made a test voyage to Cai Lan port in Vietnam, arriving safely on June 29 local time.

Toyota Tsusho Marine Fuel Corporation supplied the biofuel, and while sailing, the ship verified the main engine and generator conditions when using the biofuel.

Biofuels are considered to be carbon-neutral because the carbon dioxide that is absorbed by the source of the biomass is equal to the carbon dioxide that is released when the fuel is burned. Since biofuels can also be used in heavy oil–fired engines, they are considered to be a powerful means of reducing greenhouse gas (GHG) emissions during the transition from heavy oil to zero-emission fuels.

From fiscal 2019 to fiscal 2022, the NYK Group successfully conducted test voyages using biofuels on seven oceangoing vessels, mainly bulk carriers and two tugboats. In fiscal 2023, the NYK Group aims to conduct test voyages on multiple ships, and this trial was completed with the cooperation of Daio Paper Corporation.

NYK will continue to actively introduce biofuels and other next-generation fuels to promote decarbonization in marine transportation.

About Daio Austral

Length Overall: 210 meters
Breadth: 36.5 meters
Gross Tonnage: 49,035 tons
Deadweight Tonnage: 60,575 tons
Year Built: 2009
Shipyard: Oshima Shipbuilding Co. Ltd. (Saikai City, Nagasaki Prefecture)

Mitsui O.S.K. Lines, Ltd. announced the acquisition of approval in principle for a liquefied CO2 carrier from ship classification societies Det Norsk Veritas AS and the American Bureau of Shipping. In addition, ABS issued an AiP for a floating storage and offloading unit. Both the carrier and the FSO were jointly developed by MOL, Malaysian state oil company Petroliam Nasional Berhad, and the Shanghai Merchant Ship Design & Research Institute.

The presentation ceremony took place on June 26 at the Kuala Lumpur Convention Centre, the venue of Energy Asia, an international conference to promote sustainable development of the energy industry aimed at achieving net zero emissions in Asia.

Under a memorandum of understanding signed in February 2022, MOL and PETRONAS have jointly studied the optimum means of ocean transport for LCO2 within the Asia Pacific and Oceania region and, in cooperation with SDARI, completed the concept study of LCO2 carriers and FSO. An FSO is a floating facility that can receive, store, and offload cargo offshore, and LCO2 FSOs are considered one of the most effective scenarios in the carbon capture, utilization, and storage (CCUS) market. Completion of these concept designs and acquisition of AiPs clears the way toward a flexible approach to transport needs in consideration of volume, transport distance, and direct transport to FSOs near offshore storage facilities.

MOL Senior Managing Executive Officer Nobuo Shiotsu said, “MOL is pleased with our achievement of the various designs of the LCO2 carrier and FSO in cooperation with PETRONAS and SDARI. Development on a large scale is an essential step for the CCUS value chain within the Asia Pacific and Oceania region. Through the newly acquired AiP, the MOL Group will further accelerate this initiative on the CO2 transport business to contribute to reducing society’s overall GHG emissions.”

Upstream PETRONAS Executive Vice President and Chief Executive Officer Adif Zulkifli said, “LCO2 carriers for CO2 transportation play a key role in the carbon capture and storage value chain. The acquisition of the AiPs further strengthens PETRONAS’ commitment in offering decarbonization solutions, aligned with our aspiration in establishing Malaysia as a leading CCS hub in the region.”

“SDARI is delighted to join the innovative project with PETRONAS and MOL. The concepts will be essential to LCO2 transportation and operation, and will boost CCUS development in the maritime industry. The acquisition of the AiPs is the new start and SDARI will continuously provide more and more innovative solutions to partners for the ambitious decarbonization plan.” said SDARI Vice President Zhou Zhiyong.

MOL will further collaborate with PETRONAS through the newly acquired AiPs and will continue its efforts to develop various technologies including LCO2 carriers and FSOs, and build a diverse CCUS value chain, contributing to the realization of a carbon-neutral society.

The MOL Group Vision is to develop various social infrastructure businesses centered on marine transport and to meet the changing needs of society, including environmental conservation, through the evolution of technology and services. This is an initiative in line with not only the MOL Group Vision, but also the expansion of offshore and non-shipping businesses set forth in the “BLUE ACTION 2035” management plan and the “Expand low-carbon/decarbonized business by leveraging the group’s collective strengths,” which is one of the actions set out in the “MOL Group Environmental Vision 2.2.” With these contributions for the sustainable development of society and the preservation of nature, the MOL Group sustains and ensures a prosperous future from the blue oceans.

Outline of LCO₂ carriers and FSO