"K" Line

Sumitomo Corporation

JFE Steel Corporation

Sumitomo Osaka Cement Co., Ltd.

Kawasaki Kisen Kaisha, Ltd.

Woodside Energy Ltd

Sumitomo Corporation (Sumitomo), JFE Steel Corporation (JFE), Sumitomo Osaka Cement Co., Ltd.（SOC）, Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Woodside Energy Ltd (Woodside) have signed a non-binding memorandum of understanding (MOU) to jointly conduct a business feasibility study aimed at aggregating CO2 from the Setouchi and Shikoku regions and then transporting those emissions to Australia for permanent storage.

This study will investigate the feasibility of collecting CO2 by small-sized vessels from emitters scattered in multiple areas in Setouchi and Shikoku regions, storing those emissions temporarily at a hub port (*1) in Japan before the CO2 is transported to Australia by large-sized vessels for sequestration/storage. By collectively handling CO2 emitted from multiple regions, industries, and companies in the Setouchi and Shikoku regions, we aim to scale up and reduce costs, and work together to build a CCS (*2) value chain that would be difficult for individual companies to achieve.

The Japanese government has set a goal of implementing a policy to develop a business environment to initiate CCS projects by 2030 in its “Basic Policy for Realizing of GX” (*3). Sumitomo, JFE, SOC, “K” LINE and Woodside intend to leverage each company’s knowledge and experiences to contribute to the realization of a carbon-neutral society through this feasibility study.

On December 16th, an MOU ceremony was held at the ASEAN-Japan Economic Co-Creation Forum in the presence of Minister of Economy, Trade and Industry, Ken Saito to commemorate the conclusion of this MOU.

Each company’s comment on this initiative

■ Sumitomo Corporation

Sumitomo Corporation has highlighted mitigation of climate change as one of its key areas of focus and has committed to being carbon neutral by 2050. Sumitomo Corporation recognizes that CCUS (*4) is a key technology to combat climate change, and in January 2023 established a dedicated global CCUS team within the Energy Innovation Initiative. This new team will capitalize on existing resources to establish new business along the whole CCUS value chain, including CO₂ separation and capture, transport and storage and utilization of the captured carbon. This feasibility study is being carried out in collaboration with Metal Product Business Unit, which are working for GX (Green Transformation) with the steel industry and Living Related & Real Estate Business Unit.

■ JFE

JFE Group has formulated the JFE Group Environmental Management Vision 2050, and has positioned addressing climate change issues as the most important management issue, and is strongly promoting efforts to resolve these issues. In addition to working on the development of various ultra-innovative technologies such as carbon recycled blast furnaces and direct reduction steelmaking, JFE aims to achieve carbon neutrality by utilizing CCUS, which includes inter-company collaboration and industrial complex collaboration. In order to build the CCUS value chain, we will accelerate our efforts by expanding and strengthening inter-company collaboration, including in Japan and overseas.

■ SOC

Based on the 2050 Carbon Neutral (CN) Vision “SOCN2050,” SOC Group will take on the challenge of realizing CN by mobilizing every possible CO2 reduction measures in Japan and overseas by 2050. As a characteristic of CO2 emissions of the cement production, more than half of the CO2 emissions come from the process derived from limestone, which is the main raw material, in addition to energy-derived CO2. Full utilization of CCUS as well as non-fossil energy is essential in order to realize CN. SOC is working on CCU to mineralize CO2 as artificial limestone (CaCO3) in the NEDO’s Green Innovation Fund Project, however, SOC believes that CCS is indispensable for the realization of CN. Therefore, as SOC has main cement plants in Setouchi and Shikoku regions, we recognize the great significance of participating in this initiative.

■ “K” LINE

“K” LINE group is promoting a variety of initiatives to support the low-carbon and carbon-free for both ourselves and society in accordance with its long-term environmental policy, ““K” LINE Environmental Vision 2050”. In the field of CCS, we are planning to start the world’s first full-scale carbon capture and storage (CCS) transport from next year. We will apply the knowledge gained through the operation of these vessels, which will be launched sequentially in Japan and overseas, to future business development, including this project, with the aim of realizing a sustainable society and enhancing corporate value.

■Woodside Energy

Woodside is a global energy company, founded in Australia with a spirit of innovation and determination.  Woodside aim to thrive through the global energy transition with a low cost, lower carbon, profitable, resilient and diversified portfolio. Our focus in operations remains on safety, reliability, efficiency and environmental performance, leveraging more than 35 years of operating experience.  We have growth opportunities across gas, oil and new energy. The company’s success is due in part to its technical expertise, financial strength, and experienced workforce. As a result, Woodside is well-positioned to continue executing large projects well into the future. 

*1 hub port: A port established to temporarily store CO2 aggregated from multiple emission sources by small-sized vessels.

*2 Carbon Capture, and Storage.

*3 “Basic Policy for the Realization of GX” (Released as of Feb 10^th, 2023 by METI (Ministry of Economy, Trade and Industry, JAPAN)

*4 CCUS: Carbon Capture, Utilization and Storage.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce publication of “K” LINE REPORT 2023.

In the “K” LINE REPORT, we explain from both financial and non-financial information with the goal of helping all stakeholders, including shareholders and investors, better understand overview and progress of Medium-Term Management Plan.

・Objective, Values and Six Capital of the “K” LINE Group

・Message from the CEO/CFO

・Overview and Progress of Medium-Term Management Plan (2022-2026)

・Special Feature in Three Growth-Driving Businesses

* (Coal & Iron Ore Carrier Business, Car Carrier Business and LNG Carrier Business) and Liquefied CO2 Transport Business

・The “K” LINE Group’s Materiality

・Management Base (Human Rights, Compliance)

・Safety / Ship Quality Management

・Environmental Strategy

・Promotion of Innovation and Digital Transformation

・Human resources

・Corporate Governance

・Risk Management

・Business Overview

URL：https://www.kline.co.jp/en/ir/library/report.html

HOME ＞ Investor Relations ＞ IR Library ＞“K” LINE REPORT

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been selected again as an Asia Pacific Index component of the Dow Jones Sustainability Indices (DJSI), one of the leading global indices for ESG investing, for the 13th consecutive year since 2011.

DJSI, the index provided by S&P Dow Jones Indices, measures the performance of companies in terms of economic, environmental and social criteria, through a corporate sustainability assessment, and only includes companies with remarkable performance. Among those indices, Asia Pacific Index for 2023 selects 156 companies in the Asia-Pacific developed region (including 75 Japanese companies) as components, as a result of sustainability assessment of about 600 largest companies in the region. Launched in 1999, DSJI is one of the first global sustainability benchmarks for investors which integrate sustainability consideration into their portfolios.

Our corporate principle is to help make the lives of people more affluent, as a rooted in the shipping industry, and we aim to improve our corporate value and contribute to all stakeholders by realizing both social and economic value. Going forward, we will continue to make use of competitive advantage we have cultivated with a focus on shipping, and realize initiatives to achieve sustainability of both social/environmental and the company.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held a global meeting for the dry bulk business at the company’s head office over a two-day period from November 14 to 15. The meeting gathered not only the members of the dry bulk team at the head office but also 25 national and representatives from 10 major overseas offices, with about 100 people engaging in lively discussions in either sales or operation sessions.

At the meeting, Atsuo Asano, Representative Director, Vice President Executive Officer (responsible for Dry Bulk Carriers Unit) explained the shared significance of global KPIs (key performance indicators) based on a project for further advancement of business management for maximizing corporate value. He also spoke about measures to boost ROIC, which is an indicator for “earning power,” which emphasized the importance of everyone working in unison to achieve further growth.

On the theme of Current status of KPI progress, the KPIs identified at the start of year. such as safety/efficiency in navigation, profitability, low-carbon/decarbonization efforts for CO2 emissions reduction, were analyzed and reflected on during the operation sessions, with frank discussions taking place about increasing safety and profitability in navigation and cargo operations as well as environment and DX challenges.

On the theme of “Expand Our Business, Empower Our Success!” topics like analysis and measures for company growth and expanding the revenue base in the future as well as organizational and environmental sales with technical and environmental teams were discussed in the sales sessions, also including debates about identifying sources of added value and ways to enhance “K” LINE’s strengths through the concerted efforts of the Tokyo head office and overseas locations.

Going forward, “K” LINE will regularly hold global meetings and share KPIs globally, thereby improving customer-oriented service quality while also creating a sense of unity among our employees and strengthening teamwork. Our dry bulk business will realize sustainable profitability growth while at the same time further developing its business network on a foundation of global diversity and adding environmental reaction to the advanced transportation knowhow accumulated over many years.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has been granted Approval in Principle (AiP) *1 from Nippon Kaiji Kyokai (ClassNK) for joint development of Advanced Maneuvering Assistant System, which is being developed in cooperation with Japan Radio Co., Ltd., YDK Technologies Co., Ltd. and KAWASAKI KINKAI KISEN KAISHA, Ltd. (Kawasaki Kinkai Kisen).

We have been in progress in the Joint Technological Development Program for the Demonstration test of Fully Autonomous Ships under the MEGURI 2040 Fully Autonomous Ship Project*2 (MEGURI2040) administrated by the Nippon Foundation.

Advanced Maneuvering Assistant System, the core technology of the autonomous navigation system, has been granted AiP from ClassNK.

Background of approach

From 2021, we have been conducting joint research and development with Japan Radio Co., Ltd. and YDK Technologies Co., Ltd. for the Advanced Maneuvering Assistant System to assist the navigation in making accurate maneuvering decisions, and we are currently working on MEGURI 2040 using the technology developed through joint research and development.

In 2022, we have been conducting the system design targeting the existing large RORO cargo ship “HOKUREN MARU No. 2” operated by Kawasaki Kinkai Kisen. We have been collaborating with ClassNK in verification and validation for safety of the system, including the conditions of use and backup systems.

System summary

The Advanced Maneuvering Assistant System automatically generates some routes for avoiding a collision with other ships on a monitored route when a collision with another ship due to OZT  *3 is predicted and assists the operator in avoiding the collision. The system will consider COLREGs*4 and suggest up to two avoidance routes that will allow the ship to return to its original course line within 1 hour. In addition, track control is performed for the selected avoidance route by linking the system with Auto Pilot and ECDIS*5.

We will continue to work with Japan Radio Co., Ltd., YDK Technologies Co., Ltd. and Kawasaki Kinkai Kisen to develop a comprehensive system that will contribute to the improvement of fully autonomous ships technology as the core technology with the Advanced Maneuvering Assistant System in order to realize the autonomous navigation system on the existing RORO cargo ship “HOKUREN MARU No. 2”.

*1 AiP, which stands for Approval in Principle, is a scheme for the examination of plans and documents based on the rules for products in the early design stage to confirm their technical feasibility from the viewpoint of the rules.

Source : ClassNK

*2 A subsidization scheme to cultivate further momentum for technological development in the field of fully autonomous ships, promoting changes in logistics, economies, and social infrastructure in Japan, and supporting such technological development through the success of the world’s first fully autonomous operation trials by domestic coastal vessels. We are participating as a member of the Designing the Future of Fully Autonomous Ships Plus consortium (DFFAS+).

*3 OZT：Obstacle Zone by Target

*4 COLREGs：International Regulations for Preventing Collisions at Sea

*5ECDIS ：Electronic Chart Display and Information System

Related Release

November 27, 2023: The Nippon Foundation MEGURI2040 Fully Autonomous Ship Project

-Demonstration test of autonomous navigation system on large RORO cargo-

https://www.kline.co.jp/en/news/csr/csr-20231127.html

July 21, 2023: Participating in the Second Stage of the Nippon Foundation MEGURI2040 Fully Autonomous Ship Project for Social Implementation

https://www.kline.co.jp/en/news/csr/csr-20230721-1.html

November 2, 2021: Starts Joint R&D on Integrated Navigation Support System Using AI

and Other Cutting-edge Technologies

https://www.kline.co.jp/en/news/other/other-20211102.html

“K” Line Maritime Academy Philippines (KLMA), which is a training center for seafarers in Philippines of Kawasaki Kisen Kaisha, Ltd. (“K” LINE), has held a commemorative ceremony to celebrate its 30th anniversary since its opening on April 23, 1993. The ceremony was attended by 140 guests, including the Japanese Embassy: Ambassador, Mr. Kazuhiko Koshikawa and many other government representatives and people working with maritime affairs.

“K” LINE’s efforts to train seafarers in the Philippines started with the founding of the “K” Line Maritime Training Corporation in 1993, after which it moved from Manila to Pasay in February 2008 to allow the KLMA to expand and to make it into the major training center it is today, capable of receiving more than 10,000 seafarers every year.

The training facilities have a range of simulators for ship manoeuvring, engine control, engine rooms, cargo handling, GMDSS, boilers, and so forth as well as large marine diesel engine, diesel generator, and other devices used for navigation, enabling training compatible with IMO model courses* as well as online trainings.

the “K” LINE Group employs seafarers of various nationalities, including Japanese, Filipino, Chinese, Indian, and Bulgarian. But more than 70% of crew members are Filipino seafarers. This is why the Philippines-based KLMA is positioned as the core of training and will continue to train seafarers as a major pillar for ensuring safety in navigation and cargo operations and hull maintenance, enabling the provision of higher-quality maritime transportation.

* A training program for acquiring knowledge and skills needed to implement treaties and such that have been formulated and adopted by the IMO (International Maritime Organization).

https://www.imo.org/en/OurWork/HumanElement/Pages/ModelCourses.aspx

January 24, 2023: Donation of Protective Equipment for Pasig River Cleaners in the Philippines

https://www.kline.co.jp/en/news/csr/csr-20230124.html

December 16, 2022:

Solar Power Generation System Installed at Seafarers’ Training Facility in Philippines

https://www.kline.co.jp/en/news/other/other-20221216.html

August 20, 2021: Providing the Space for Vaccination Site in Philippines

https://www.kline.co.jp/en/news/csr/csr-20210820.html

October 22, 2018: 25th Anniversary of Maritime Training in the Philippines

https://www.kline.co.jp/en/news/csr/csr-20181022.html

March 5, 2018:

New Building with Seafarer’s accommodation Delivered, Opening Ceremony held in The Philippines

https://www.kline.co.jp/en/news/csr/csr-2886024779447980011.html

January 24, 2012: “K” Line Maritime Academy (Philippines) ECDIS Training Course

https://www.kline.co.jp/en/news/other/other5548709855115120597.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) commenced forest conservation activities in the forests owned by “K” LINE in Numata City, Gunma Prefecture, Japan in November 2023.

About 15 people participated in these activities, planting 80 trees in a section of an area of about 2.5 ha, in collaboration with the Tone Numata-JForest/Forestry Association as well as with the NPO Chiba University Student Committee for Environmental Management System that we have previously worked together with to preserve satoyama land. The trees planted were of a kind native to the area.

The “K” LINE Group’s businesses depend on the sea and other natural resources, so we view initiatives to tackle climate change and otherwise conserve biodiversity in the sea and on land as an important theme in our business activities. We identify “aiming for zero environmental impact” as a goal in the “K” LINE Environmental Vision 2050^*1, which is our long-term policy for the environment ahead to 2050 and advancing initiatives for ecosystem protection. Moreover, “K” LINE participated in the TNFD Forum this fiscal year and disclosed information about our self-assessment of nature-related risks and opportunities under the TNFD framework^*2.

Our forest conservation activities not only preserve biodiversity but also contribute to fighting climate change as forests absorb CO2. We intend to keep working to build a sustainable future based on a comprehensive understanding of natural capital and climate change.

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

https://www.kline.co.jp/en/sustainability/environment/management/main/010/teaserItems1/012/linkList/0/link/K-LINE_E-vision_en_2020_v2.pdf

[Reference press releases]

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

https://www.kline.co.jp/en/news/csr/csr-20231017-2.html

*2 November 13, 2023: Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has joined the Taskforce on Nature-related Financial Disclosures (TNFD) Forum

https://www.kline.co.jp/en/news/csr/csr-20231113.html

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.