SEAGATE CORPORATION CO., LTD. (SGC), a consolidated subsidiary of Kawasaki Kisen Kaisha, Ltd. (“K” LINE), officially concluded an agreement today with Kanagawa Dockyard Co., Ltd. (Kanagawa Dockyard) on the construction of an electric tugboat (EV tug, with EV standing for electric vessel) powered by a large-capacity lithium-ion battery.

SGC has discussed the detailed design of the tugboat with Kanagawa Dockyard and equipment manufacturers in accordance with the hybrid EV tug construction plan^*1 announced in July 2022. The anticipated specifications have recently been achieved due to the downsizing of the tugboat’s equipment and the improvement of maintenance performance resulting from introduction of a newly developed domestic technology, leading to the construction agreement with Kanagawa Dockyard.

The tugboat will have a hybrid EV system incorporating many new technologies which have not previously been used in domestic tugboats into its drive motors, swing devices, current control systems and other components. It is equipped with a power generator to be used when the battery does not have enough remaining electricity during the operation of the electric propulsion system which is primarily powered by the lithium-ion battery. This significantly reduces the consumption of fossil fuels and the amount of carbon dioxide emissions compared to tugboats equipped with conventional main engines fueled by heavy oil. The project is highly regarded for its innovative technologies, leading to the decision to choose it to be a demonstration project linked to the 2025 subsidy for the rationalization of energy consumption and the shift to non-fossil energy in the transportation sector (a project promoting the innovative streamlining of coastal shipping and the shift to non-fossil sources of energy), provided by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism. The project will proactively seek to achieve the decarbonization of the coastal ship industry.

The tugboat is scheduled for completion in the latter half of 2027 and will be deployed at the Port of Tokuyama-Kudamatsu in Yamaguchi prefecture, which seeks to become the hub for the supply of clean energy as it sits in front of one of West Japan’s largest chemical complexes. The tugboat will facilitate the arrival and departure of ships at the port, and it will also engage in security operations, contributing to the establishment of a carbon neutral port (CNP).

The “K” LINE Group develops and operates the DRIVE GREEN NETWORK system for promoting the Group’s environmental management activities in line with its long-term environmental policy, “K” LINE Environmental Vision 2050: Blue Seas for the Future.^*2 The Group as a whole works together to protect the environment. The “K” LINE Group will continue to support the decarbonization of society and contribute to the enrichment of people’s lives.

(*1) SGC Hybrid EV Tug Construction Plan (announced in July 2022)

https://www.kline.co.jp/en/news/csr/csr-20200722.html

(*2) “K” LINE Environmental Vision 2050: Blue Seas for the Future

As part of our action plan to reduce GHG, we are engaged in a number of initiatives, for instance introducing zero-emission fuels such as ammonia and hydrogen fuels, and carbon-neutral fuels such as bio-LNG and synthetic fuels.https://www.kline.co.jp/en/sustainability/environment/management.html

“K” LINE ENERGY SHIPPING (UK) LIMITED (KLES), a London-based subsidiary of Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and Havstjerne ANS (HANS) an unlimited liability incorporated partnership of Harbour Energy Norge AS (Norwegian subsidiary of Harbour Energy, an oil and gas company in the UK) and Stella Maris CCS AS (a wholly owned subsidiary of the Yinson Production) have entered into an agreement to jointly identify the transportation, injection and storage solutions best suited for the Havstjerne CO₂ storage licence on the Norwegian Continental Shelf and work to increase the maturity of these solutions.

Under a Memorandum of Understanding (MoU), KLES and HANS will collaborate to optimize technical and commercial solutions for a marine-based CO₂ value chain based on a floating storage and injection unit (FSIU) and liquefied CO₂ carriers and bring these solutions to maturity. The two companies will leverage their expertise in liquefied CO₂ transportation, injection, and subsurface storage to provide a robust and cost-effective CO₂ transport and storage service to emitters participating in the Havstjerne CO₂ value chain.

For CCS projects worldwide, offshore sequestration is a safe and efficient way of permanently storing large volumes of CO₂. FSIUs are well suited to serve as safe, reliable and cost-efficient solutions in offshore CCS projects where it is difficult to secure sufficient land for an onshore CO₂ receiving terminal, or where the distance between the receiving terminal and the offshore storage site would require an extended pipeline. The Havstjerne licence is in the Norwegian sector of the North Sea, approximately 100 km southwest of Egersund and within relative proximity to key ports in Northern Europe. It is 60% owned by Harbour Energy (the operator) and 40% owned by Stella Maris CCS AS, a unit of Yinson Production.

Yinson Production operates a fleet of floating production, storage and offloading (FPSO) and floating storage and offloading (FSO) vessels and has extensive expertise in engineering, design, and operations in the offshore energy sector. Since 2021, Yinson Production has been steadily developing its carbon value chain, with direct investments in carbon capture technologies.

The “K” LINE Group has a long history and diverse track record in the owning, operation and management of liquefied gas carriers. Since 2024, KLES has managed two liquefied CO₂ carriers for the world’s first commercial CO₂ transport and storage service. In line with “K” LINE Environmental Vision 2050, the “K” LINE Group’s long-term environmental policy, the “K” LINE Group is actively promoting various initiatives with the goal of supporting its own decarbonisation efforts and those of society. “K” LINE will push forward with its CCS business with the aim of achieving a sustainable society and enhancing its corporate value.

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”.

About Yinson Production

“Passionately delivering powerful solutions”

Yinson Production is a leading independent owner and operator of floating production, storage and offloading (“FPSO”) vessels worldwide. With a current fleet of 10 vessels, Yinson Production has an order book of over USD 19 billion until 2048 and global presence in 10 countries.

Yinson Production’s position as a top tier FPSO contractor is driven by its excellent track record in project execution, industry-leading safety and uptime performance, and a leadership position in sustainable FPSO designs. Yinson Production’s innovative Zero Emissions FPSO Concept is paving the way for the decarbonisation of the FPSO industry.

Yinson Production is a business of Yinson Holdings Berhad, a global energy infrastructure company active in offshore energy with Yinson Production, renewable energy with Yinson Renewables, and green technologies with Yinson GreenTech.

About Harbour Energy

Harbour Energy has built a unique position as one of the world’s largest and most geographically diverse independent oil and gas companies, with operations spread across five continents. It is producing between 460,000 and 475,000 barrels of oil equivalent (2025 guidance) per day with significant production in Norway, the UK, Germany, Argentina and North Africa. With low GHG emissions intensity and a leading CO₂ storage position in Europe, Harbour remains committed to producing oil and gas safely and responsibly to help meet the world’s energy needs.

Harbour is headquartered in London with approximately 3,400 employees and direct contract staff across its operations and offices.

For more information about Havstjerne, please visit www.havstjerne.com

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that phase one of the development of “Seawing” automated kite system utilizing wind power being developed by OCEANICWING S.A.S (OCEANICWING), a subsidiary of “K” LINE in France, was successfully completed in June 2025. In phase one of the development of “Seawing”, OCEANICWING verified the tensile strength and performance of “Seawing” system using a 300 m² kite at a land test site. OCEANICWING has confirmed the results of these tests have been good.

To move forward with the development and practical application of “Seawing”, OCEANICWING commenced phase two of its development in July 2025. In phase two of the development of “Seawing”, OCEANICWING plans to increase the size of the kite and verify the tensile strength, reliability, operability and safety of “Seawing” system at the land test site, looking ahead to the shipboard use of the system. Additionally, OCEANICWING will conduct offshore demonstration experiments on a large bulk carrier owned and operated by “K” LINE. The goal is to complete the tests within approximately two years and move toward the practical application of “Seawing”. It is expected that “Seawing” will reduce fuel consumption by more than 10%.*¹
Additionally, to facilitate the establishment and commercialization of “Seawing”, OCEANICWING appointed Shingo Kameyama CEO on August 1. Mr. Kameyama has been involved in the development of “Seawing”.

*1           Please note that actual energy-saving effects depend on ship type, speed, route and season. In certain combinations of these factors, fuel consumption may be reduced by significantly more than 10%.

“Seawing” harnesses natural wind power and can be installed on any type of vessel, including existing vessels. It is expected that there will be synergy between “Seawing” and the efforts to transition away from the conventionally used heavy fuel oil to other fuels such as liquified natural gas (LNG), and that “Seawing” will increase performance in terms of the reduction of CO₂ emissions. There are several wind-assisted propulsion systems (WAPS) that are under development, and “Seawing” is differentiated from the other WAPS by its ability to generate a comparatively large amount of thrust, which is achieved using high-altitude wind.

Takenori Igarashi, the President & CEO of “K” LINE, said, “Phase one of “Seawing” development process being implemented by OCEANICWING has been successfully completed. We will continue to develop the system so that it can be used on ships. We plan to develop this innovative energy saving device harnessing natural wind power into a great solution for achieving the decarbonization of the shipping industry.”

The “K” LINE Group will continue to strive to contribute to the sustainable development of society and the economy and continue to increase its corporate value based on “K” LINE Environmental Vision 2050, the Group’s long-term environment management vision as it moves toward 2050. “K” LINE will maximize the use of wind, a renewable source of energy, in the propulsion of the vessels to contribute to the low-carbon initiatives of not only “K” LINE, but also “K” LINE’s customers and society as a whole.