Archives for February 2024

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) was selected as an “A List” company for 2023, the highest rating in the CDP Climate Change Questionnaire, on February 6th. This is the eighth consecutive year that “K” LINE has been selected as an “A List” company, after being selected an “A List” company in 2016, in recognition of its leadership in transparency and performance in corporate sustainability on climate change. CDP is an international non-profit organization (NGO) headquartered in London that works with more than 740 institutional investors worldwide with over US$130 trillion in assets under management in 2023. Each year, CDP sends a questionnaire to companies regarding climate change risks and opportunities and their responses. The results of the survey are then used to evaluate the companies on an 8-grade scale (A List being the highest rating). The results of the survey are used as a universal indicator to measure corporate value. The number of companies responding to the survey has been increasing every year, and in 2023, an all-time high of approximately 23,000 companies responded, an increase of nearly 30% over the previous year. This year, the number of companies certified as “A List” companies for CDP Climate Change is 346 worldwide, with 109 for Japanese companies including “K” LINE.

In our long-term management vision, we are committed to a smooth energy transition for ourselves and society, and we will promote activities to realize a low-carbon, decarbonized society. Also, our long-term environmental guideline named “K” LINE Environmental Vision 2050 *1), sets the goal of achieving “Net Zero Greenhouse Gas Emissions by 2050,” and in its medium-term management plan, we announced policy of allocating 60% of total investment in environmental measures in a concentrated manner. Specifically, we are actively working to promote the low-carbon and carbon-free for both ourselves and society through advanced initiatives such as the introduction of LNG fueled vessels, the installation of the “Seawing” automated kite system, further expansion of the liquefied CO2 carrier business to establish a CCS value chain　as well as through various councils and demonstration projects for the practical use of ammonia/hydrogen fueled zero-emission vessels. We are aware that our efforts to reduce the environmental impact of our business activities through the operation of our environmental management system have been highly evaluated.

The CDP questionnaire is scheduled to reflect the TNFD (The Taskforce on Nature-related Financial Disclosures) framework, and there is a move to encourage companies to disclose more nature-related information. We consider not only climate change but also biodiversity conservation as important issues and adopted the LEAP approach advocated by TNFD last year, becoming the first shipping company to conduct nature-related risk analysis.

Going forward, the “K” LINE Group will continue to enhance information disclosure based on a comprehensive understanding of climate change and natural capital and aim for sustainable growth and increased corporate value as a trusted partner to all stakeholders.

*1 Please see the following for details of our “K” LINE Environmental Vision 2050. https://www.kline.co.jp/en/sustainability/environment/management.html

Today, Northern Lights JV DA and Kawasaki Kisen Kaisha, Ltd. (“K” LINE) signed Bare Boat Charter and Time Charter contracts for the management of the third CO2 ship. This follows the formerly signed contracts for managing the first two 7,500 m3 liquefied CO2 ships*1, in Northern Lights’ four ship fleet, that will be delivered in 2024.

The London-based subsidiary “K” LINE LNG Shipping (UK) Ltd., will manage the three ships, facilitating the transportation of liquefied CO2 from Northern Lights customers based in Norway, Denmark, and Netherlands, to Northern Lights’ CO2 receiving terminal in Øygarden, Norway, from where the CO2 will be injected into the offshore reservoir for safe and permanent storage.

“We are pleased to expand our partnership with “K” LINE, a ship operator with extensive experience in liquefied gas transport and a strong safety and environmental track record. These ships will be shuttling between our customers in Northwest Europe and the Northern Lights’ onshore facilities, each transporting over 400,000 tonnes CO₂ annually”, said Børre Jacobsen, Managing Director of Northern Lights.

In December 2022, “K” LINE was awarded the ship management contracts of the two first Northern Lights ships, which are currently 75% completed and will be delivered later this year.

“K” LINE LNG Shipping (UK) Ltd. is working on an operation manual and commissioning protocol and cooperating with relevant parties such as terminal operators and port authorities.

In parallel, a crew training program is being implemented to ensure safe and reliable operation.

“We are delighted to successively undertake ship management for the third Northern Lights vessel. We have already set up a dedicated team for CO2 ship management in “K” LINE LNG Shipping (UK) Ltd. in London for the first and second vessels and believe that the preparation for prior vessels will be further accumulated with the additional vessel in the fleet. Having the experience of building up the team and operational procedure, we are determined to contribute to the world’s first CCS project by Northern Lights.”, said Yukikazu Myochin, President and CEO of “K” LINE.

Northern Lights is developing a ship-based CO₂ transport solution that enables flexible access to industrial emitters and carbon capture points across Europe. In December 2023, Northern Lights placed the order of a fourth CO₂ ship, sister to the ones currently under construction at Dalian Shipbuilding Offshore Co., Ltd (DSOC). With these four ships, Northern Lights will have the world’s largest dedicated CO₂ shipping fleet.

“Our investment in these custom-built ships reflects our commitment to deliver safe, reliable, and sustainable CO2 transport services. The recent contracts to build and operate the third and fourth ships signify an increase in Northern Lights’ shipping capacity and reinforce our pioneering role in CO2 transport”, said Børre Jacobsen.

About Northern Lights

Northern Lights delivers CO₂ transport and storage as a service, enabling mitigation of industrial emissions that cannot be avoided and accelerating the decarbonisation of European industry. The company will transport liquefied CO₂ from capture sites to an onshore receiving terminal in western Norway, before transporting it by pipeline for permanent storage in a reservoir 2,600 metres under the seabed. On schedule to be ready to receive CO₂ in 2024, Northern Lights offers safe and reliable CO₂ transport and storage services to industrial emitters in Norway and across Europe. Northern Lights JV DA is a registered, incorporated General Partnership with Shared Liability (DA) owned by Equinor, TotalEnergies and Shell.

www.norlights.com

About Kawasaki Kisen Kaisha, Ltd. (“K” LINE)

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) founded in 1919 is one of the largest shipping companies in the world. “K” LINE has a long history and diversified track-record in ownership and technical management of liquefied gas carriers since delivering its first LPG carrier in 1974 and first LNG carrier in 1983. Based on such extensive experience of safe navigation and cargo operation of liquefied gas carriers, “K” LINE will contribute to safety and reliable liquefied CO₂ transportation in the new CCS market. “K” LINE Group, as a globally trusted logistics company rooted in the shipping industry, will continue to work toward realizing low-carbon and carbon-free business operations and supporting decarbonization of society as a whole in order to realize a sustainable society and increase its corporate value, based on its corporate philosophy of “helping make the lives of people more affluent”.

*1 December 19, 2022: “K” LINE enters into long-term contracts with Northern Lights for two liquefied CO2 vessels ~World’s first full scale CCS project~

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20221219.html