Kawasaki Kisen Kaisha, Ltd. (“K” LINE) hereby announces that the following change of responsibilities of Executive Officer were resolved at the Board of Directors Meeting held today.

Change of Responsibilities of Executive Officer as of July 1, 2023

Please see below the list of responsibilities of Executive Officers as of July 1, 2023.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has participated in the GX League, which will begin full-scale operation from this year.

Based on the goal of our Environmental Vision of “The Challenge of Achieving Net-Zero GHG Emissions by 2050,” we have formulated a growth strategy that regards contributing to the realization of a low-carbon and decarbonized society as a business opportunity.

In the latter half of the 2020s, we will contribute to the realization of low-carbon and decarbonization of marine transportation in our customers’ value chains through our own efforts to reduce GHG emissions, aiming to introduce zero-emission ships using new fuels.

Furthermore, by responding to the demand for support vessels for projects related to the renewable energy field, such as offshore wind power, transportation of new energy sources, such as hydrogen and ammonia, and carbon capture and storage (CCS) transportation, we will leverage the strengths we have cultivated to date and actively engage in businesses that contribute to the low-carbon and decarbonization of society.

Through our participation in the GX League, we aim to be a company that continues to be chosen by all stakeholders by further accelerating these initiatives, reducing environmental impact, and continuously improving corporate value toward the realization of a sustainable society.

“K” Line Group Environmental Awards 2023 Ceremony held on June 12, 2023.

The awards were established to honor and give recognition to outstanding environmental-preservation-contributive activities undertaken by both executives and employees working throughout the “K” Line Group according to the direction developed in “K” Line Environmental Vision 2050. This year marks the 9th awards ceremony since establishment of the awards in 2015. We accepted many entries from our group companies both in Japan and overseas. The activities of five companies — one “Grand Award” , four “Excellence Award” and one “Special Award” —  were selected from such standpoints as “originality,” “challenge level,” “degree of contribution,” “continuity” and “potential for pervasiveness”, and they received the awards from our President and CEO, Yukikazu Myochin.

The “K” Line Group will continue to broadly share environmental preservation activities being addressed within our Group companies via the presentation of these annual “K” Line Group Environmental Awards in order to demonstrate the environmental preservation activities by the entire Group. Through this emphasis on continuing to aggressively contribute to environmental preservation and biodiversity protection, we will successfully accomplish our mission, i.e., “Passing on a sustainable society and this blue and beautiful ocean to the next generation” as expressed in “K” Line Environmental Vision 2050.

Awardees of the “K” Line Group Environmental Awards are as follows:

GRAND AWARD

• Reducing fossil fuels and CO2 emissions by using EV cars, installing solar carports and storage batteries at the Daikoku Car Carrier Terminal

Daito Corporation

The Daito Corporation considered ways to contribute to CO2 emissions reduction at the Daikoku Car Carrier terminal, and decided to convert company cars to EVs and install solar carports that can charge EVs. The solar carport can be used to charge EVs, and a portion of the surplus power can be supplied to the guardroom office or can be stored in storage batteries for use at night or in times of disaster.

The amount of electricity generated during the first four months of operation has been 1581.9 kwh since it started operating in November 2022, resulting in a reduction of approximately 1140.55 kg of CO2 emissions.

EXCELLENCE AWARD

• Restoring the ecosystem through dam building

“K” Line (Thailand) Ltd.

The water storage will increase in forests by building check dams in national parks and we can restore the ecosystems of surrounding organisms.

• Improvement of business operations through the introduction of RPA

Nitto Total Logistics Ltd.

We can improve work efficiency and reduce copy paper usage.by Introducing RPA (Robotic Process Automation) into daily operations,

• Use of “ECOPLA WOOD” as a substitute for wood dunnage

“K” Line Marine Solutions Co., Ltd.

We can reduce wood usage by changing the part of the dunnage (cargo bedding material) used for curing and protecting cargo and hold decks from wood to “ECOPLA WOOD”, which is Recycled Plastic Products.
Entering into World’s first full scale CCS project with Northern Lights for two liquefied CO2 vessels/CO2 reduction through CCS/liquefied CO2 transportation Carbon-Neutral Promotion Group (Kawasaki Kisen Kaisha, Ltd.)

We participated in the world’s first full-scale Carbon capture and storage value chain project in Norway by two liquefied CO2 carriers.
(Special Award) : Accumulation 10 entries

• “K” Line (Thailand) Ltd.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) received the Gold Award in the Magazine Advertising Category for the 44th 2023 Japan BtoB Advertising Awards hosted by the BtoB Association Japan. The award was given for four advertisements in “K” LINE’s environment series, entitled, “Full ahead to carbon neutral”, and the award ceremony was held on June 9th.

The Japan BtoB Advertising Awards is the only comprehensive contest for BtoB advertising works in Japan, started by the BtoB Association Japan in 1980. The Awards are divided into 15 categories, including the Product Catalog Category, the Poster Category, and the Newspaper Advertisement Category, and the purpose of the Awards is to commend the creative results of business advertising in Japan and to acknowledge and offer evaluations of excellent BtoB advertising by experts in creating advertisements and marketing. This was the first award in any of the categories for “K” LINE.

“K” LINE established the long-term “K” LINE Environmental Vision 2050*¹ policy on the environment, defining a 50% reduction in CO2 emissions by 2030 compared to 2008 and establishing the goal reaching net zero in GHG (GreenHouse Gases) by 2050. In the Medium-Term Management Plan released in May 2022, “K” LINE established a long-term management vision to commit to a smooth energy transition for both the company and society and to promote activities aimed at realizing a low-carbon and decarbonized society. “K” LINE’s environmental advertising, entitled, “Full Steam Ahead to Low Carbon and Decarbonization”, was created based on specific initiatives and each of the four advertisements features a different model: an LNG-fueled pure car and truck carrier, a main measure to reduce GHG emissions by 2030; SEAWING, an automatic kite system to reduce CO2 emissions by more than 20% by utilizing wind power; a zero-emissions ammonia-fueled pure car and truck carrier aiming to achieve net-zero emissions by 2050; and a ship supporting offshore wind power generation that is expected to become popular in the future.

Going forward, “K” LINE will continue to strive to contribute to sustainable economic and social development and enhance corporate value while actively and flexibly responding to customers’ needs, including environmental responses which are expected to grow, and preserving the environment through business activities based on the “K” LINE Environmental Vision 2050.

*¹: “K” LINE Environmental Vision 2050:-Blue Seas for the Future-

https://www.kline.co.jp/en/sustainability/environment/management.html#002

Kawasaki Kisen Kaisha, Ltd. (hereafter, “the Company”) will account following dividends income on Non-Operating Income of non-consolidated financial results for the fiscal year ending March 31, 2024.

1. Outline of dividends

Based on today’s resolution at the general meeting of the shareholders of OCEAN NETWORK EXPRESS PTE. LTD., the affiliate company accounted with the equity method, the Company will receive dividends of 616 million U.S. Dollars (Approx. 86.1 billion Japanese Yen) in the first quarter of the current fiscal year. The dividend is scheduled to be received on June 15, 2023.

2. Impact on The Company’s business performance

The Company will account aforementioned dividends income on Non-Operating Income of non-consolidated financial results for the fiscal year ending March 31, 2024.

There will not be impact on consolidated financial results at the period, as it is dividends from the affiliate company accounted with the equity method.

“K” LINE’s website URL:  https://www.kline.co.jp/en/index.html

Developing a Japanese-produced floating wind turbine to reduce the cost of offshore wind power

Electric Power Development Co., Ltd. (J-POWER),¹ Tokyo Electric Power Company Holdings, Inc. (TEPCO HD),² Chubu Electric Power Co., Inc. (Chubu Electric),³ Kawasaki Kisen Kaisha, Ltd. (“K” LINE),⁴ and Albatross Technology Inc. (Albatross),⁵ have entered into a joint research agreement for a next-generation (floating axis) offshore wind turbine demonstration project (the “project”).

The  Japanese government has announced the intention to maximize the adoption of renewable energy sources as part of the nation’s commitment to achieving carbon neutrality by 2050. Offshore wind power, in particular, is considered a vital part of the initiative to make renewables a primary source of power due to the potential for large-scale installation, lower cost, and economic ripple effects. In Japan, with limited shallow sea areas, there is growing interest in floating offshore wind power because it can be deployed in deep water. To promote the widespread adoption, it is essential to significantly reduce costs through technological development. In addition, increasing the ratio of domestic production (in Japan) is expected to create a strong economic ripple effect.

Against this backdrop, the five partnering companies in this demonstration project will jointly develop a small-scale (20kW) next-generation experimental floating axis wind turbine that is expected to reduce costs and increase the domestic production ratio.

The floating axis wind turbine (FAWT) is a concept under which a vertical-axis wind turbine is supported by a “rotating” cylindrical floating foundation. Its main features are as follows:

Cost Reduction

• The wind turbine can be tilted 20 degrees at maximum output, as it is designed to maintain effectiveness even when tilted. This allows for downsizing for the floating foundation and a significant reduction in equipment costs.
• The wind turbine section can be manufactured at low cost through continuous pultrusion,⁶ a molding process used to form composite materials into long shapes, with carbon fiber reinforced plastics (CFRP).
• By taking advantage of the characteristics to install vertical axis wind turbines close to sea level due to their specific characteristics, operation and maintenance costs for the major apparatus are also anticipated to be substantially lower.

Increase in Domestic Production Ratio

• The wind turbine blades can be manufactured in lengthwise sections with the same cross-sectional shape, eliminating the need for large-scale manufacturing facilities. Additionally, this design makes sections easier to transport, and is therefore suited for domestic production.
• Japanese companies hold approximately 80% of the market share for carbon fiber, the raw material used in the carbon composite for the wind turbine.

J-POWER, Osaka University’s Graduate School of Engineering and Albatross are jointly conducting initial studies of the FAWT concept. Embarking on the tests signifies the next step under a new framework. For the project, small-scale experimental versions of the FAWT will be installed in Japanese waters. After confirming the validity of the analysis and design method, this will lead to an even larger scale (megawatt class) offshore demonstration project.

The five companies involved in the project will use their individual expertise to jointly develop the FAWT, which is anticipated to be a “game changer” in floating offshore wind power generation. Through this collaboration, we aim to make offshore wind power generation the primary source of electricity and contribute to the realization of a carbon-neutral society.

Goals of participating companies:

Cooperating Organizations

The wind turbine section of the small-scale experimental units will be developed by Fukui Fibertech Co., Ltd. (Aichi Prefecture), and the floating section will be developed by Mirai Ships Inc. (Miyagi Prefecture). The carbon composite material molding technology will be developed in partnership with the Innovative Composite Center (ICC) at the Kanazawa Institute of Technology, and the motion analysis technology will be developed in partnership with Osaka University’s Graduate School of Engineering.

Notes:

1. Electric Power Development Co., Ltd. (headquartered in Chuo-ku, Tokyo; President: Toshifumi Watanabe)
2. Tokyo Electric Power Company Holdings, Inc. (headquartered in Chiyoda-ku, Tokyo; President: Tomoaki Kobayakawa)
3. Chubu Electric Power Co., Inc. (headquartered in Nagoya City, Aichi; President: Kingo Hayashi)
4. Kawasaki Kisen Kaisha, Ltd. (headquartered in Chiyoda-ku, Tokyo; President: Yukikazu Myochin)
5. Albatross Technology Inc. (headquartered in Chuo-ku, Tokyo; CEO: Hiromichi Akimoto)
6. A molding method for continuously manufacturing components with the same (fixed) cross-section by solidifying the resin and fibers as they are drawn through a mold