Archives for November 2023

Engineering Advancement Association of Japan

Kawasaki Kisen Kaisha, Ltd.

Nippon Gas Line Co., Ltd.

Ochanomizu University

The christening and handover ceremony for a liquefied CO₂ transportation demonstration test ship was held today, November 28, 2023, at the Shimonoseki Shipyard of Mitsubishi Heavy Industries, Ltd. (Shimonoseki city, Yamaguchi).

The construction of the demonstration test ship was completed today, and the ship will transport liquefied CO₂ for the CCUS R&D and Demonstration Related Project, the Large-scale CCUS Demonstration in Tomakomai, the Demonstration Project on CO₂ Transportation, the R&D and Demonstration Project for the Marine Transportation of CO₂ (the “Demonstration Projects”) which are being conducted by NEDO.

The demonstration test ship was named “EXCOOL” by Mr. Masazi Sasayama, Deputy Director of Carbon Management Division Natural Resources and Fuel Department Agency for Natural Resources and Energy of Ministry of Economy, Trade and Industry, who took part in the ceremony along with all those involved in the demonstration project. The vessel was delivered today to Sanyu Kisen (Kobe City) and chartered to Nippon Gas Line Co., Ltd. (Nippon Gas Line)

General Specifications

Cargo tank capacity: 1,450 m³

Overall length: 72.0 m

Breadth: 12.5 m

Draft: 4.55 m

The “EXCOOL” will be operated in this demonstration project with the aim of establishing a technology for the large-volume and long-distance marine transport of liquefied CO₂, which will play an important role in the development of Japan’s CCUS (Carbon Dioxide Capture, Utilization and Storage) project.

The use of vessels is an effective way to improve the efficiency of transporting CO₂ from capturing sites to remote storage sites. To increase efficiency still further, liquefied CO₂ should be transported by large size vessels. “EXCOOL=EX-CO2L” was named with a determination to establish a safe operation technology for transporting low-temperature liquefied CO₂, which is suitable for larger vessels.

CCUS is regarded as an indispensable technology for achieving carbon neutrality in 2050, and the Japanese government and companies are preparing for it to become fully operational from 2030. Along with these activities, international movements are underway to utilize the abundant overseas CO₂ storage capacity potential, including the establishment of the “Asia CCUS Network.” The efficient transport of CO₂ captured in Japan to overseas locations by ship will consequently become an essential technology in the future. In this demonstration project, the EXCOOL will be used to verify the techniques for transporting and handling liquefied CO₂ in tanks under different transport conditions, with the aim of establishing optimal CO₂ marine transport technology in terms of the environment, safety, and economic efficiency.

The roles of each company in this demonstration project are as follows.

Engineering Advancement Association of Japan (ENAA) has been engaged in research and development for the operation of a demonstration ship equipped with a liquefied carbon dioxide ship tank system. It achieved delivery of the demonstration vessel. ENAA will continue to be responsible for the planning, analysis and supervision of the demonstration test in the future.

Ochanomizu University conducts basic research on the control of the state of carbon dioxide (phase changes) and provides the information required for safe transportation.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has helped to prepare an operation manual by conducting a risk assessment of the “EXCOOL” using its expertise in operating cryogenic liquefied gas carriers. “K” LINE will continue to contribute to the establishment of safe liquefied CO₂ carrier operation technology through its analysis of demonstration data.

Utilizing its expertise in operating coastal gas carriers, Nippon Gas Line will measure CO₂ temperature, pressure, flow, and other data while operating the “EXCOOL” to develop optimal transport methods and cargo handling techniques.

With this demonstration project, ENAA, “K” LINE, NGL, and Ochanomizu University aspire to contribute to the realization of a carbon neutral society.

[Related releases]

June 22, 2021: Participation in R&D and demonstration project for CO2 marine transportation

https://www.kline.co.jp/en/news/carbon-neutral/Liquefied_gas8511561127992992679/main/0/link/210622EN.pdf

February 2, 2022: NEDO Demonstration Project: The World’s First Demonstration Test Ship for Liquefied CO2 Transportation to be Built

https://www.kline.co.jp/en/news/carbon-neutral/Liquefied_gas-7680599579843084358/main/0/link/220202EN.pdf

October 7, 2022: NEDO Demonstration Project: Demonstration Test Ship for Liquefied CO2 Transportation has broken ground

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-239031784827641936/main/0/link/221007EN.pdf

March 28, 2023: NEDO Demonstration Project: Demonstration Test Ship

for Liquefied CO₂ Transportation has been Launched.

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-2466357874350683012/main/0/link/230328EN.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) manages “K” Line With, the video communication site for employees of “K” LINE Group, to make quantitative and qualitative progress in implementation of the medium-term management plan known to employees in the Group as one of the initiatives towards enhancing corporate value, as set out in the medium-term management plan.

“K” LINE uses “K” Line With as a tool to share information among the Group’s global business sites, including overseas sites, to carry out operations globally, on land and sea, with a sense of unity. “K” Line With posts videos that share the content of cross-departmental projects of the Group. The TSUNAGU Project, which aims to connect vessels and land-based business sites, posts videos every week. These videos were shot on “K” LINE vessels and show scenery and crews working and living on board.

Videos posted on “K” Line With that explain progress in the implementation of the medium-term management plan and the results in the first half of FY2023 have been posted also on “K” LINE’s official website for the first time. As well as making our outside stakeholders more aware of our activities, “K” LINE aims to deepen understanding of the medium-term management plan within the Group, globally promote internal communication and information sharing, encourage a sense of solidarity as a source of the Group’s strength, and reinforce the foundation of its business operations.

(Video Link): Medium-Term Management Plan Progress and Financial Highlights Brief Report for 2nd Quarter FY2023

https://www.kline.co.jp/en/corporate/kline_with.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) organized “K” LINE UNIVERSITY 2023 (KLU 2023) to disseminate the K LINE Group’s management policy and create a sense of unity among the members of “K” LINE Group.

KLU 2023 was the first KLU event in eight years. Under the slogan, “Reunion”, it took place over four days from Monday, October 23 to Thursday, October 26, and 24 members of the Group from “K” LINE’s overseas Group companies in 19 countries and regions took part in the event. Embracing diverse values is a source of competitiveness in global business. On the subject of “Unity in diversity”, KLU 2023 included explanations of the business strategy by management executives, participant workshops, a ship handling simulator experience at the Machida Training Center and other programs. The event fostered an understanding of “K” LINE’s management policy as well as the development of participants’ embrace of diverse values and sense of unity (Diversity and Inclusion) through face-to-face communication in the event’s programs.

“K” LINE will continue organizing “K” LINE UNIVERSITY on a regular basis to secure and train personnel capable of supporting the portfolios of the different businesses and execute business strategies at a high level. “K” Line will do this by welcoming people with diverse values who have the capacity to seek the continued development of “K” LINE Group while increasing its corporate value.

Kawasaki Kisen Kaisha, Ltd.

Japan Petroleum Exploration Co., Ltd.

JGC Holdings Corporation

Japan Petroleum Exploration Co., Ltd. (JAPEX), JGC Holdings Corporation (JGC HD,) and Kawasaki Kisen Kaisha, Ltd. (“K” LINE) (hereinafter referred collectively as the “Japan Consortium (JC)”) have agreed and signed the Key Principles Agreement (“KPA”) with PETRONAS CCS Ventures Sdn. Bhd. (PCCSV) on 22nd September 2023, to jointly mature and develop the CCS (Carbon Capture and Storage) project plan and structure (hereinafter the “CCS Project Development”) aiming the commercialization of the CCS project by the end of 2028 at offshore Malaysia.

The signing ceremony took place in Japan, attended by PETRONAS President & Group CEO, YM Tan Sri Tengku M Taufik, JAPEX Representative Director and President, Masahiro Fujita Representative, JGC HD Senior Executive Officer, Technology Commercialization Officer (TCO), Masahiro Aika and “K” LINE Managing Executive Officer, Satoshi Kanamori in the presence of Mr. Saeki, Director of Ministry of Economy, Trade and Industry (METI). The announcement was made today after receiving consent from relevant stakeholders.

The CCS joint collaboration study (hereinafter the “Joint Study”) was commenced by PETRONAS and JAPEX in January 2022 and JGC Corporation, a subsidiary of JGC HD. and “K” LINE joined in July of the same year*¹, has successfully assessed the underground storage capacity of CO2, marine transportation from CO2 emission sources, and the most effective CO2 storage scheme for the purpose of permanent storage at offshore Malaysia. Based on the conclusion of Joint Study, that targeting the depleted oil and gas fields and the associated aquifers, identified offshore Malaysia, will maximize practicality of CO2 storage and feasibility of the earliest commercialization, we have agreed to execute the CCS Project Development jointly.

The KPA will commence the specific preparatory works with a view of beginning the front-end engineering design in 2024 and the subsequent construction works, aiming to inject and store CO₂ from Malaysia and Japan in the end of 2028. We will proceed with the detailed engineering of the specifications, estimated costs, and business scheme, including infrastructure network of CO₂ pipelines from onshore gathering, receiving facilities for liquefied CO₂ transported by ships and offshore injection facilities. PCCSV and JC will work closely with other Malaysian stakeholders for the development of the CCS hub in Malaysia.

PCCSV and JC will execute the CCS Project Development aiming for the final investment decision on the commercialization in the mid-2020s and the operation commencement by the end of 2028. The target amount of CO2 injection is to be at least about 2 million tons per year at the beginning of the project, including that from Malaysia and Japan, and 5 million tons per year by 2030, with a view to increasing the amount to more than10 million tons per year in the early 2030s.

In addition, the JC will continue the joint evaluation (hereinafter the “Joint Evaluation”) aiming to establish the CCS value chain originated from Japan with JFE Steel Corporation*² since this June and will manage to collaborate between the Joint Evaluation and the CCS Project Development.

By executing the KPA for the early commercialization of the CCS project, JAPEX, JGC HD and “K” LINE aim to contribute for the realization of de-carbonized society in Asia targeted by the “Asia Energy Transition Initiative (AETI)” *³.

*1: Please refer a joint press release “JGC CORPORATION and Kawasaki Kisen Kaisha, Ltd. Joins CCS Study in Malaysia” on July 29, 2022.

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral7943232713056097109/main/0/link/220729EN.pdf

*2: Please refer a joint press release “Agreed on Joint Evaluation with JFE Steel Corporation to Establish CCS Value Chain Originated from Japan Aligned with CCS Study in Malaysia” on June 19, 2023.

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral5848372426150697499/main/0/link/230619EN.pdf

*3: The Japanese Government’s initiative announced in May 2021, which aims to achieve sustainable economic growth and carbon neutrality simultaneously in Asia.

Reference Photo: KPA Signing Ceremony

PT. “K” Line Total Logistics Indonesia (KTLI), the comprehensive logistics company of Kawasaki Kisen Kaisha., Ltd. (“K” LINE) in Indonesia, commenced operation of the Kline Vehicle Processing Center (KVPC), a logistics facility for finished vehicles, in Jakarta in early November.

“K” LINE subsidiary PT. “K” LINE INDONESIA founded KMDI Logistics (KMDI) jointly with local company PT. Mobaru Diamond Indonesia in 2003. Since then, we have been engaged in the business of the land transportation of finished vehicles by carrier car in Indonesia for 20 years. The commencement of the operation of the new facilities stems from the consignment of a finished vehicle logistics business in connection with Hozon New Energy Automobile (brand name: NETA MOTOR) entering the Indonesian market. Hozon New Energy Automobile is a battery electric vehicle (BEV) manufacturer in China that has recently been growing rapidly. This facility is located in Marunda Center, approximately 10 kilometers from Jakarta Port, where logistics facilities are concentrated.

1. KMDI’s land transportation of finished vehicles landed at the port of Jakarta to the facility

2. Storage of vehicles at KVPC and various inspections prior to handover to dealers (PDI-Pre Delivery Inspection)

3. Final delivery by KMDI

4. KTLI’s integrated management including the provision of the above logistics solutions to clients

The integrated finished vehicle logistics service structure is to be established as follows:

“K” Line group has been offering the finished vehicle logistics services including terminal, land transportation, storage and PDI services in countries such as ASEAN, Australia and Latin America. By utilizing the expertise in high-quality transportation that has been cultivated through marine transportation by car carriers, “K” Line group will continue working hard to increase customer satisfaction.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Kansai Electric Power Co., Inc. (KEPCO) have jointly studied optimal marine transportation and storage schemes for the liquefied CO₂ from KEPCO’s thermal power plants to develop the Carbon dioxide Capture and Storage (CCS) value chain since the signing of a memorandum of understanding on January 19, 2023.

Having completed an initial joint study on liquefied CO₂ shipping, the two companies have now entered into a service agreement to study feasibility related to the liquefied CO₂ carrier’s design involving domestic and foreign shipyards. This detailed study, which includes design development by shipyards, is ahead of the initiatives of other CO₂ emitters.

Based on this Service Agreement, “K” LINE and KEPCO will study and develop optimal specifications for liquefied CO₂ carriers and aim to realize liquefied CO₂ marine transportation.

“K” LINE and KEPCO are accelerating actions toward the realization of a zero-carbon society through detailed research and the implementation of studies toward the delivery of a liquefied CO₂ carrier that will play an important role in the CCS value chain.

Outline

• Summarization of issues in the design of an optimal liquefied CO₂ carrier, ship building technologies and shipping costs aiming for the fast realization of liquefied CO₂ marine transportation.
• Feasibility studies related to liquefied CO₂ carrier designs implemented by shipyards

Related release

January 19, 2023: “K” LINE and KEPCO Signed MoU on the Joint Study of Liquefied CO2 Shipping for Developing CCS Value Chain

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-5533502900799355640/main/0/link/230119%20EN%20.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held its global conference for car carrier business. The goals of the conference are to discuss medium- and long-term strategies for car carrier business, promote human resource development for maritime shipping professionals around the world and exchange views and ideas.

Twenty-four local staff members and representatives from six major overseas offices participated in the conference, which was divided into themed sessions: operation and transportation quality on September 19 and 20, and sales and strategy from October 10 to 12.

The operation session was attended by a total of about 30 participants, including national staff and representatives responsible for operation quality management at overseas locations, person in charge from the Group’s domestic ports, ship management companies and headquarters staff. The participants confirmed that a strong commitment to safe vessel operation and navigation is the top priority of car carrier business. Further, they engaged in lively discussions, focusing on compliance with environmental regulations in a rapidly changing business environment, as well as the optimum operation policies to achieve safe and efficient maritime transportation. These discussions also introduced the efforts of each location towards these objectives.

The transportation quality session looked at specific examples of accidents and problem solving at each location and reviewed the current cargo-handling procedures in order to provide enhanced-quality transportation services to customers. In addition, it was confirmed that to prevent serious accidents, including fires, it is crucial to make well-balanced improvements in three key areas: crew training, review of emergency response procedures and technological innovation for accident prevention.

As in the other sessions, the sales and strategy session also brought together a total of about 30 participants, including national staff and representatives from major overseas offices and headquarters staff. To continue to be “the service of choice for customers,” participants openly discussed next-generation business models focused on environmental response and the competitiveness of the business to build a new sustainable growth trajectory from a customer-centric perspective.

“K” LINE Car carrier business division will continue to hold its regular global conference to share its vision and goals from a global perspective, thereby strengthening the competitiveness of its business across the network. “K” LINE is committed to the development and sustainable growth of car carrier business and to its social mission of supporting the supply chain of the automotive industry.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has joined the Taskforce on Nature-related Financial Disclosures (TNFD) Forum^*1.

In October this year, “K” LINE conducted a comprehensive assessment of risks and opportunities by introducing the LEAP approach^*2, which is proposed by the TNFD, to evaluate the environmental risks and nature-related impacts of our business and consider appropriate responses as part of our information disclosure under the TNFD framework.

As a member of the TNFD Forum, “K” LINE will be even more proactive in disclosing information and advancing environmental initiatives.

*1  The TNFD is an international initiative aimed at building a framework for appropriate assessments and disclosures of risks and opportunities related to natural capital and biodiversity. The TNFD Forum is a group of stakeholders consisting of business enterprises, financial institutions, research organizations, and other entities. It was set up for the purpose of supporting discussion at the TNFD to help build a framework. Please refer to the following website of the TNFD Forum for details.
https://tnfd.global/

*2  It is an integrated evaluation process for managing nature-related risks and opportunities advocated by the TNFD for information disclosure, consisting of four phases: Locate (interface with nature), Evaluate (dependencies and impacts on nature), Assess (significant nature-related risks and opportunities), and Prepare (for responses and reporting).
Please refer to the following website page of “K” LINE for details on LEAP analysis.
https://www.kline.co.jp/en/sustainability/environment/impact_mitigation.html

Related Press Release:

October 17, 2023: Disclosure of information based on the TNFD Framework

https://www.kline.co.jp/en/news/csr/csr5653514589507041307/main/0/link/231017EN2.pdf