"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce the execution of seven long-term Time Charter contracts through joint venture companies (Note 1) with QatarEnergy (Note 2).   The joint venture companies have concurrently executed Shipbuilding contracts for 174,000m3 LNG carriers with Hyundai Heavy Industries Co., Ltd.

QatarEnergy is one of the world’s largest LNG producers and will allocate the newbuilding vessels to transport LNG around the world.

The newbuilding vessels will be equipped with X-DF 2.1 iCER (Note 3) and Air Lubrication System (Note 4) which will contribute to reduction of GHG emissions and realize the ease of environmental impact by lower fuel consumption in operation.

Since the delivery of “Bishu Maru” in 1983 as the first Japanese LNG carrier, “K” Line has been establishing expertise on LNG transportation and developing its worldwide network for nearly 40 years.

“K” LINE and QatarEnergy have had long-term relationship through several existing projects. The new contracts have been executed as a successful result of supervision of vessel’s construction with abundant experience, the high-quality ship management, and the highest level of safe and commercially optimized operation.

In our Medium-Term Management Plan published in May 2022(Note 5), “K” LINE has placed LNG business as one of the top priority areas in the future investment. “K” LINE will further expand long-term contracts and accommodate growing energy demands by responding to various customers’ needs.

(Note 1) It is sponsored by “K” LINE together with Nippon Yusen Kabushiki Kaisha, China LNG Shipping (Holdings) Limited.,　and MISC Berhad through its wholly-owned subsidiary, Portovenere and Lerici (Labuan) Pte Ltd.

(Note 2) QatarEnergy is a state energy company of Qatar.

(Note 3) X-DF 2.1 iCER is a low speed dual-fuel engine with gas at low pressure.

(Note 4) Air Lubrication System is technology to curb the resistance between the ship’s hull and seawater by generating air bubbles on the ship’s bottom.

(Note 5) Medium-Term Management Plan (Released on May 9, 2022)

https://www.kline.co.jp/en/ir/management/strategy.html

Main Particulars of the Vessel

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has been selected as a constituent of the “FTSE4Good Index Series”, one of the leading global indices for ESG investing, for the first time in two years, and “FTSE Blossom Japan Index” for six years in a row since the index was launched in 2017.

Created by the global index provider FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company), the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. (1,093 companies selected from developed countries, including 224 Japanese companies, and 566 companies from emerging countries). The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

On the other hand, FTSE Blossom Japan Index reflects the performance of Japanese companies that demonstrate strong ESG practices (253 companies selected out of 1,395 constituents of FTSE Japan All Cap Index). This index has been adopted as a benchmark of ESG investing by Government Pension Investment Fund (GPIF) in Japan. 

“K” LINE has been addressing sustainability as a priority issue of its corporate management, and advancing various initiatives to respond flexibly to various needs. These include not only changing customer needs, but also the needs of nations and the global community, especially for the achievement of the UN Sustainable Development Goals, and measures to mitigate climate change. Going forward, “K” LINE will continue to pursue conservation of the global environment while helping to realize a sustainable society through proactive sustainability efforts. We will also remain steadfast in our pursuit of growth opportunities and greater corporate value.

~ Aiming for joint contribution to CO2 reduction in Malaysia and Asia by three Japanese companies ~

Japan Petroleum Exploration Co., Ltd. (JAPEX) has signed an MOU with JGC CORPORATION (JGC), and Kawasaki Kisen Kaisha, Ltd. (“K” LINE) on a joint study for Carbon Capture Storage (CCS) in Malaysia (hereinafter the “Joint Study”, (Note1). JAPEX had earlier signed an MOU with Petroliam Nasional Berhad (PETRONAS), a global energy and solutions partner and ranked amongst the largest corporations in Fortune Global 500 in January 2022.

In the Joint Study, investigations of suitable sites for CO2 storage in Malaysia and their technical evaluations are being conducted, aiming to be completed in 20 months. This includes consideration of methods to capture and transport CO2 from the PETRONAS LNG Complex located in Bintulu, Sarawak and from outside Malaysia as a future possibility. To promote the conceptual studies conducted by PETRONAS and JAPEX, the Joint Study welcomes two companies, JGC and “K” LINE which specializes in plant engineering and marine energy transportation as well as offshore operation.

PETRONAS along with JAPEX, JGC, and “K” LINE, will collaborate in evaluating CO2 storage technologies such as calculation of storage capacity and optimal storage methods, optimal capture and transportation options including estimation of emissions and capture volumes, as well as monitoring the method of CO2 storage underground.  The economic evaluation, study of feasible business schemes, and research of applicable regulations will be done in the Joint Study.

JAPEX, JGC, and “K” LINE will contribute in realizing a decarbonized society in Asia targeted by Asia Energy Transition Initiative (AETI)(Note2)

(Note1) Released from JAPEX on January 28^th,2022:

JAPEX Agreed with PETRONAS on CCS Joint Study in Malaysia

https://www.japex.co.jp/en/news/detail/20220128_01/

(Note2) The Japanese Government’s initiative announced in May 2021, aims to simultaneously achieve sustainable economic growth and carbon neutrality in Asia.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has recently received an award “Marine Engineering of the Year 2021” from the Japan Institute of Marine Engineering for the “CC-OCEAN” project, jointly conducted with Mitsubishi Shipbuilding Co., Ltd. (Mitsubishi Shipbuilding) and Nippon Kaiji Kyokai (“ClassNK”) for the verification of CO2 capture plant onboard as part of the “Research and Development for advancing marine resources technologies” (Note 1).

The award ceremony was held on 22^nd July at the “KAIUN CLUB” in Chiyoda ward, Tokyo in recognition of the world’s first CO2 capture plant on vessel that successfully separated and captured CO2 from exhaust gas emitted from a ship and achieved the captured CO2 purity of more than 99.9%, which is in line with the planned performance.

The “CC-OCEAN” project, which was selected for the award, is based on the CO2 capture plant for on-shore converted for off-shore use, and installed on board a coal carrier “CORONA UTILITY”, operated by “K” LINE for Tohoku Electric Power Co., Inc., and conducted a demonstration test at sea for 6 months.

As a result, both the CO2 capture rate, quantity, and purity were as planned, and demonstrated that CO2 can be captured from the exhaust gas from marine engines, where environmental conditions are different from those on-shore.

In order to strengthen the initiatives toward global climate change countermeasures, based on the “K” LINE Environmental Vision 2050 (Note 2), we will put its full effort into decarbonization of the “K” LINE and supporting decarbonization of society with the aim of achieving a sustainable society and enhance corporate value.

(Note 1)

Announced on 31-Aug 2020: “CC-Ocean” (Carbon Capture on the Ocean) project

https://www.kline.co.jp/en/news/csr/csr-5587043701830807195/main/0/link/200831EN%20.pdf

Announced on 5-Aug 2021: Launch of the “CC-OCEAN” project demonstration

https://www.kline.co.jp/en/news/csr/csr7601431474845700352/main/0/link/210805EN.pdf

Announced on 20-Oct 2021: Successfully separated and captured CO2 from exhaust gas in World’s First CO2 Capture Plant on Vessel

https://www.kline.co.jp/en/news/csr/csr818532238088767329/main/0/link/211020EN.pdf

(Note 2)  Released on November 4^th, 2021：

“K” LINE has revised our environmental target in our long-term environmental guideline “K” LINE Environmental Vision 2050 -Blue Seas for the Future-, which we had released the revised version in November 2021, in order to strengthen the initiatives toward global climate change countermeasures and has set our new target for 2050 as “The Challenge of Achieving Net -Zero GHG Emissions”.

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

“CENTURY HIGHWAY GREEN” a 7,080RT large-scale LNG fueled car carrier operated by Kawasaki Kisen Kaisha, Ltd. (“K” LINE), has been selected as large cargo ship sector award of “Ship of the Year 2021” given by The Japan Society of Naval Architects and Ocean Engineers. The award ceremony was held on July 22^nd, 2022.

“Ship of the Year” has been annually awarded to innovative vessels built in japan in the past year from technical, artistic, and social point of view. The award was established in 1990 and this year is the 32nd anniversary.

“CENTURY HIGHWAY GREEN” is expected to reduce emissions of carbon dioxide (CO2), which is a greenhouse gas (GHG) by 25% to 30%, emissions of sulfur oxides (SOx), which cause air pollution, by almost 100%, and emissions of nitrogen oxides (NOx) by 80% to 90% with the use of Exhaust Gas Recirculation (EGR) in addition to the use of LNG fuel, compared to conventional vessels using heavy fuel oil. High pressured LNG fueled main engine which realize the reduction of methane slip (emission of unburned gas) was first adopted as a car carrier built in Japanese shipyard. In addition, high speed communication infrastructure was installed in this vessel as a digital flagship, which realize to apply the remote survey. It was evaluated that the vessel has latest environmental friendliness, digital technology, and an excellent exterior design in “Ship of The Year 2021”

“K” LINE formulated “K” LINE Environmental Vision 2050 (Note1), which set forth our long-term goals for 2050. The launch of CENTURY HIGHWAY GREEN realizing transportation with a low environmental impact is an important milestone for achieving “improvement of CO2 emission efficiency by 50%” as our 2030 target. In addition to flexibly and proactively responding to customer needs, “K” LINE will continuously strive to enhance our corporate value by contributing to the sustainable development of the society and global environment through active collaborations on Decarbonization based on “K” LINE Environmental Vision 2050.

Note1）Released on November 4^th, 2021：

“K” LINE has revised our environmental target in our long-term environmental guideline “K” LINE Environmental Vision 2050 -Blue Seas for the Future-, which we had released the revised version in November 2021, in order to strengthen the initiatives toward global climate change countermeasures and has set our new target for 2050 as “The Challenge of Achieving Net -Zero GHG Emissions”.

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that our group company, SEAGATE CORPORATION CO., LTD.(SGC), will build new electric tugboat powered by battery.

The new Tugboat is equipped with a propulsion system running on “Hybrid EV system”. It has electric motor as a main power source running by large capacity lithium-ion battery charged by land charger. It also equipped generator as the auxiliary power source.

The Tugboat will be first Tugboat which has electric motor as a main power source in Tokuyama and will be deployed in the first half of 2025 to reduce greenhouse gas (GHG) emission in Tokuyama area.

In the future, it will be possible to achieve zero emissions by replacing the fuel for the generator with zero emission energy.

In last November, “K” LINE has revised a part of our long term environmental guideline “K” LINE Environmental Vision 2050” (Note 2) and set our new target for 2050 as “The challenge of Achieving Net-Zero greenhouse gas (GHG) emissions”. While public attention to the greenhouse gas emissions including from shipping is becoming increasing, “K” LINE will strive to enhance our corporate value by contributing to the sustainable development of the economy and society, while protecting the environment through our business activities.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has already decided to install “Seawing”, an automatic kite system developed by AIRSEAS SAS Ltd. (AIRSEAS), on two of our Capesize bulkers, and has now signed the contract for the purchase of three additional “Seawing” units with AIRSEAS.

The additional “Seawing” units will be installed on three post-Panamax bulkers, which are expected to reduce CO2 emissions by more than 20%, similar to Capesize bulkers case. This will be a one of our efforts to achieve our GHG reduction target. The first ship of implementation is scheduled for a Capesize bulker in Dec. 2022.

In addition, “K” LINE and AIRSEAS have signed a technology development agreement for the effective utilization of the traction power from the “Seawing” based on renewable energy.

Specifically,the objective of the agreement is to maximize the performance of “Seawing” by integrating “K” LINE’s ship operational technology with utilization of “Kawasaki Integrated Maritime Solutions” (*1) and AIRSEAS’s “Seawing” development technology.

“K” LINE is working to realize sustainable society and increase corporate value and reduce its environmental impact to achieve our goal of “Net Zero GHG Emissions by 2050” set forth in the “K” LINE Environmental Vision 2050 (*2) through the innovation of various environmental improvement technologies such as “Seawing”.

Press Release about “Seawing” installation

* June 7, 2019: Installation of “Seawing”, an automated kite system utilizing natural energy

https://www.kline.co.jp/en/news/csr/csr7510328279625406497/main/0/link/190607EN%20.pdf

* July 20, 2021: Signing of a Long-term Consecutive Voyage Charter for our first LNG-fueled Capesize Bulk Carrier

https://www.kline.co.jp/en/news/drybulk/drybulk8599282089888261624/main/0/link/210720EN.pdf

REFERENCE LINKS

*1: Kawasaki Integrated Maritime Solutions, Integrated vessel operation and performance management system.

https://www.kline.co.jp/en/news/other/other3295047094663452046.html

*2: “K” LINE Environmental Vision 2050

https://www.kline.co.jp/en/news/ir/auto_20211102423677/pdfFile.pdf

Kawasaki Kisen Kaisha, Ltd. Group (“K” Line Group) is pleased to announce that we signed the memorandum of understanding with Emirates Global Aluminium (EGA) for establishing the working committee for collaborative research on Decarbonization. 

“K” Line group have been engaging in seaborne transportation of the raw material for EGA since 1979, when the predecessor company of EGA,“Dubai Aluminium”, was founded. We also started long term COA from 2019, shipping around 5 million tons of bauxite per annum. “K” Line Group is delighted to share that on this occasion, EGA and “K” Line Group agreed to collaborate together through the sharing of research and ideas and utilising and leveraging on the respective party’s knowledge about new marine technology, alternative fuels and other fields potentially growing in the near future, so as to achieve the common target of a Net-Zero Green House Gas emission by 2050.

In our Medium-Term Management Plan published on May 2022(Note1), “K” Line defined Marine Transportation Business by Large Vessel, such as Bauxite and Iron Ore as one of the top priority areas for driving growth. We will continuously strive to enhance our corporate value by contributing to the sustainable development of the society and global environment through active collaborations on Decarbonization through the development of partnership with customers.

K” LINE Group Environmental Awards 2022 Ceremony held on June 6^th, 2022.

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 8th awards since establishment of the awards in 2015, and we also have accepted many entries from our group companies both in Japan and overseas. Activities of five companies — one “Grand Award”, three “Excellence Award” and one “Special Award” — have received the awards from our President and CEO, Yukikazu Myochin.

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

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

Grand Award

Painting Contest on the theme of clean oceans – Let’s think together about the preservation of our irreplaceable oceans! –

“K” LINE CHILE LTDA. /   “K” Line Peru S.A.C.

A painting contest by school children was held on the theme of the sea and the environment. The winning works were used as illustrations for the commemorative calendars for the 50th anniversary of “K” LINE CHILE, LTDA. and K Line Peru S.A.C.

Teachers commented that the event provided an opportunity for the children to think about ocean environment conservation. They appreciated the fact that the children could participate in this activity at home amidst the COVID19 that still continues.

(The works are posted on the website below.)

“K” LINE CHILE, LTDA. Home Page:　https://www.kline-chile.com/dgn-activity

“K” Line Peru S.A.C.  Home Page:  https://www.kline-peru.com/dgnactivity

Excellence Award

• Reduce CO2 Emission by ECO Driving training – Bangkok Marine Enterprises Ltd.
• Reduce CO2 Emission through commuter bicycle rental to employees – “K” Line (Deutschland) GmbH
• Diminishing CO2 Emission by Reducing Garbage Disposal Charge Through Effective Compacting – M/V CAPE BROLGA

Special Award “K” Line Pte Ltd

Kawasaki Kisen Kaisha, Ltd. completed the conversion of Kawasaki Kinkai Kisen Kaisha, Ltd. into a wholly-owned subsidiary on June 1^st, 2022 through a simplified share exchange, as announced in “Announcement of the Execution of a Share Exchange Agreement to Make Kawasaki Kinkai Kisen, Ltd. a Wholly-Owned Subsidiary of Kawasaki Kisen, Ltd. (by Simplified Share Exchange)” on March 16^th, 2022. (Note1)

By making Kawasaki Kinkai Kisen, Ltd. a wholly-owned company of Kawasaki Kisen Kaisha, Ltd., the two companies will make effective use of respective management resources, such as technology, customer bases and human resources, and accelerate the collaboration in order to realize further synergy, and thereby enhance the corporate value.

(Note1) Released on March 16^th, 2022:

Announcement of the Execution of a Share Exchange Agreement to Make Kawasaki Kinkai Kisen, Ltd. a Wholly-Owned Subsidiary of Kawasaki Kisen, Ltd.

https://www.kline.co.jp/en/news/ir/auto_20220316506569/pdfFile.pdf