Japan shipping and energy firms join hands to promote ammonia-powered vessels

Shipping company Nippon Yusen, power and energy firm Jera, Imabari Shipbuilding and four other Japanese corporations have announced a partnership to promote ammonia-fueled ships.

The seven, also including shipping company Kawasaki Kisen Kaisha, Kyokuyo Shipyard, Shin Kurushima Dockyard and Nihon Shipyard, said Tuesday that they will cooperate in the construction and operations of four ammonia-fueled car carriers.

They will also work together for energy procurement, aiming to establish supply chains for ammonia, which is attracting attention as a fuel with low carbon dioxide emissions.

Imabari Shipbuilding, Shin Kurushima Dockyard and Nihon Shipyard will build the car carriers for completion in 2030, and Nippon Yusen and Kawasaki Kisen will operate the ships to transport finished vehicles made by automakers including Toyota Motor.

Jera will procure ammonia from locations including India and store it at its thermal power station in the city of Hekinan, Aichi Prefecture, for supply to the car carriers.

Separately, Kyokuyo Shipyard will construct an ammonia-bunkering vessel.

Ammonia, along with hydrogen and other energy sources, is regarded as a promising next-generation fuel for the shipping industry, which, like many other sectors, is stepping up efforts for decarbonization.

As high costs compared with mainstay fuel oil are a major challenge, the seven companies hope to develop an efficient supply network and make the ammonia-fueled ship business profitable.

“Ammonia has great potential in terms of mass production and supply network construction,” Nippon Yusen President Takaya Soga said at a joint news conference in Tokyo on Tuesday.

“Ammonia has enormous significance also from the perspective of (strengthening) Japan’s industrial competitiveness,” he added.