"K" Line

The newly-built W-Max class liquefied natural gas (LNG) carrier for Petronas LNG Ltd. is delivered at Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. today.

Two new-building vessels will be delivered to PETRONAS for the long-term Time Charter

(Note 1). The first vessel was given her name “LAGENDA SURIA” and another sister-vessel will be named “LAGENDA SERENITY” next month. These vessels will engage in transportation of LNG from Malaysia (Bintulu) to Shenergy (Group) Co., Ltd., China.

“Lagenda” is a Malay word for “legend” and “Suria” is for “Sun”. “Serenity” is a reflection of “calmness or peacefulness”. “Lagenda” signifies the new iconic industry standard for the pace of procurement and chartering with the first W-Max design (Note 2). “Suria” and “Serenity” signifies the clean energy source of which the vessels will dedicatedly supply LNG to Shanghai to light up the city and for sustainable and peaceful future.

In our Medium-Term Management Plan published on May 2022, “K” Line define LNG carriers business as one of the top priority area for driving growth,“K” Line will flexibly and proactively respond to customer needs, including growing needs for environmental and digital solution to maximize its corporate value.

(Note 1) Please refer to the press release on February 10, 2020 : “K” Line enters into Long-Term Time Charter with Petronas LNG Ltd. for Two Newbuilding LNG vessels.

https://www.kline.co.jp/en/news/lng/lng1030731521550597510/main/0/link/20200210_en.pdf

(Note 2) Maximum vessel size which is acceptable for the discharging operation at Wuhaogou LNG terminal of Shenergy (Group) Co., Ltd.

Main Particulars of the Vessel

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Daito Corporation (Daito) have started operation of “K” LINE Group’s first dedicated finished vehicle terminal in Japan, at Yokohama Daikoku C-4 Terminal from April 2022. On April 5th, “IVORY ARROW” operated by “K” LINE, a pure car and truck carrier (PCTC), made its first call at the terminal. On April 15th, we held a safety prayer ceremony with the terminal operators and an opening ceremony with the attendance of many related parties.

The terminal is used not only as an export and transshipment base for finished vehicles (new and used vehicles) but also handle a wide variety of vehicles such as break-bulk cargoes by utilizing work facility with large roof in terminal in order to meet a variety of needs.

In addition, the terminal will use electric power generated from renewable energy sources with virtually zero CO2 emissions. The terminal will procure 100% wind-generated renewable energy from blockchain-based electricity traceability service (a service for specifying the power plants from which electricity is procured) of “Minna-Denryoku”, operated by UPDATER Corporation.

In last November, “K” LINE has revised a part of our long　term environmental guideline “K”LINE Environmental Vision 2050” (Note 1) and set our new target for 2050 as “The challenge of Achieving Net-Zero greenhouse gas (GHG) emissions”. We 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.

(Note 1) “K” LINE Environmental Vision 2050

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

Terminal Overview

Name                   : Yokohama Daikoku C-4 Terminal

Location              : Daikoku Futo 22&24, Tsurumi-ku, Yokohama, Japan

Business               : Finished-vehicle logistics

Pier length          : 350 m (1 berth)

Sea depth            : 15 m

Total yard area  : Approx. 153,500 m2 (including berth area)

Parking slots       : Approx. 8,000 units

～Approvals in Principle (AIP) Obtained from ClassNK～

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) jointly developed two conceptual designs for LNG-fueled and battery-powered energy-saving bulk carriers and obtained Approvals in Principle (AIP) (Note 1) from Japan’s ship classification society Nippon Kaiji Kyokai (ClassNK). “K” LINE developed a conceptual design for 200,000 ton class capesize bulk carrier in collaboration with Namura Shipbuilding Co., Ltd. and Taiyo Electric Co., Ltd. The other design was jointly created by “K” LINE, Shin Kurushima Sanoyas Shipbuilding Co., Ltd., and Taiyo Electric Co., Ltd for  90,000 ton class post-Panamax bulk carrier.

By selecting low-carbon LNG as the primary fuel source, an energy-saving vessel has been designed that helps reduce greenhouse gas emissions. The design was further enhanced by adopting permanent magnet (PM) shaft generator (Note 2) technology, along with lithium-ion batteries, which are already being used in a wide range of fields in the society. Moreover, by utilizing batteries as part of the platform for power supply on board, the aim is to further reduce emissions going forward by later adding green energy sources with energy-saving technology.

AIP technical features and their benefits

1. Utilizing LNG fuel

2. Adoption of shaft generator technology

3. Battery technology adoption

Small-capacity batteries with excellent charge and discharge rates will be used for auxiliary power during peak hours of onboard demand. They will also be utilized to store surplus electricity.

In the new post-Panamax carrier design, emissions will be reduced by using large-capacity batteries instead of a dual fuel generator during cargo loading and unloading. (The number of dual fuel generators installed can be reduced by one.)

In the new capesize carrier design, the battery capacity will be greater due to amount of power required during cargo handling. Here emissions during cargo handling will also be reduced by enabling vessel connection to shore power (Note 3).

Image of Future next-generation bulk carrier

In addition to the equipment for greenhouse gas emissions reduction under the recent AIPs, the aim is to further reduce emissions going forward by installing various optional technologies.

Last November, “K” LINE partially revised its Environmental Vision 2050 (Note 4) and decided to take on the challenge of achieving net-zero greenhouse gas emissions. “K” LINE views this challenge as one of the concrete initiatives that will help achieve its vision by 2050.

While public attention to the greenhouse gas emissions including from shipping is becoming increasing, “K” LINE will actively work to reduce environmental impact by researching, developing, and introducing ships with excellent environmental performance to achieve our goal set on “K” LINE Environmental Vision 2050 .

• An Approval in Principle (AIP) indicates that a certification body has reviewed and approved the conceptual design. This means the design meets relevant technical requirements and standards, even in the case of new technologies and areas not specifically covered by current regulations.

• A shaft generator uses the rotation of the ship’s propeller shaft to generate electricity.

• A system that allows ships to switch off their generators when docked and obtain the necessary electricity through a connection to the onshore power grid.

• Released Nov 4, 2021: The Challenge of Achieving Net-Zero GHG Emissions

Revision of 2050 Targets for “K” LINE Environmental Vision 2050

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has decided in a board meeting held today on changes of responsibilities of Executive Officers.

1. Changes effective as of June 1, 2022

2. Responsibilities of Executive Officers on and after June 1, 2022

Please see the attached list of responsibilities of Executive Officers scheduled on and after June 1, 2022.

Attachment: The responsibilities of Executive Officers on and after June 1, 2022

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has decided during board meeting held today on following change of Director.

1. Change of Director
(1) Retirement scheduled for June 23, 2022

“K” Line Wind Service, Ltd., a joint venture company between Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Kawasaki Kinkai Kisen Kaisha, Ltd. (*1), is granted for Class C Innovation Endorsement Provider Certification for organizations by ClassNK.

ClassNK offers its third-party Innovation Endorsement “Provider Certification”, which supports innovative initiatives, to companies and organizations. As companies pursue ESG-oriented management and SDGs, ClassNK conducts the third-party certification on the initiatives to transform their own business methods and organizations in order to establish the sustainable and competitive business. There are three categories of certification available to companies according to their innovation activity stage. (*2)

Offshore Wind development is recognized as one of the most important items for Japan to reach carbon neutrality by 2050 and in order to contribute to its development in Japanese ocean, “K” Line Wind Service has been established as a business platform of “K” Line group for any vessel and transportation business around Offshore Wind projects in Japan.

“K” Line Wind Service is established with mission to contribute to the development of offshore wind as well as marine industry in Japan through the activities such as the program of “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted by Green Innovation Fund run by NEDO. (*3)

“K” Line Wind Service will continuously explore the new and competitive solutions in Japanese Offshore Wind projects while pursuing SDGs.

(*1) “K” Line Wind Service, Ltd

A joint venture company established by Kawasaki Kisen Kaisha, Ltd. and Kawasaki Kinkai Kisen Kaisha, Ltd. on June 1^st, 2021 targeting the contribution to Offshore Wind in Japan throughout the marine solution that the group have developed in the history of 100-year.

Announcement on April 30^th, 2021:

Establishment of “K” Line Wind Service, Ltd. for Offshore Support Vessel Operation

(https://www.kline.co.jp/en/news/energy/energy1216843343315336832/main/0/link/210430EN2.pdf)

(*2) Innovation Endorsement by ClassNK

ClassNK started to offer its third-party Innovation Endorsement in 2020, which supports innovation initiatives, to companies and organizations. There are three categories (1) Notation, (2) Product & solutions certification, and (3) Provider certification with three categories of certification available to companies according to their innovation activity stage.

Class C (Concept: Organizational policy and system in place for innovation)

Class D (Development: Specific innovation activities being carried out)

Class S (Sustainable Implementation: Sustainable innovation with results implemented in the business)

https://www.classnk.or.jp/hp/en/activities/techservices/dgd2030/iea/index.html

(*3) “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted by Green Innovation Fund run by NEDO

“K” Line Wind Service, Ltd., a joint venture company between Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Kawasaki Kinkai Kisen Kaisha, Ltd. (*1), together with Japan Marine United Corporation, Nihon Shipyard Co., Ltd. and Toa Corporation is pleased to announce that the project of “Mass-Production and Cost Reduction of Floating Offshore Wind Installation” was officially adopted as Green Innovation Fund for “Cost Reduction for Offshore Wind Power Generation Projects”

Announcement on January 21^st, 2022:

Joint project on “Mass-production and Cost Reduction of Floating Offshore Wind Installation” adopted as Green Innovation Fund

https://www.kline.co.jp/en/news/energy/energy-7251549612202879904/main/0/link/220121EN.pdf

～Approval in Principle (AIP) from American Bureau of Shipping～

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and JGC CORPORATION (JGC) jointly developed a new concept of FLNG (floating LNG) Hull (Note 1) and have received Approval in Principle (AIP) (Note 2) from American Bureau of Shipping (ABS), in which the LNG storage tanks of existing LNG carriers are to be utilized.

FLNG is suitable for the development of offshore natural gas fields, especially small and medium-sized gas fields where onshore LNG plants are not profitable. FLNG also reduces the cost of laying subsea pipelines and enables it to be diverted to other sea areas after the natural gas field is depleted. There are many small and medium-sized offshore natural gas fields around the world. With the increase in energy demand especially in emerging countries and the shift to natural gas as low-carbon fuel, there are already several FLNG projects that are presently underway mainly in Asia and Africa.

Supported by the Ministry of Land, Infrastructure, Transport and Tourism (Note 3), “K” LINE and JGC have developed a new type of FLNG Hull. This FLNG Hull pursues the following effects by transferring and utilizing the spherical (Moss type) tanks from the existing LNG carriers of the earlier generation as an LNG storage facility which is FLNG’s core function.

• Reduce Hull construction costs by eliminating the need to build new LNG storage tanks, which are expensive and require special techniques
• Increase the candidates of shipyards that can build the Hull, thereby shortening the lead time and reducing the construction cost

“K” LINE has been engaged in the LNG transportation business for many years and has extensive experiences in the construction and operation of LNG carriers. “K” LINE is also involved in the offshore business by participating in the owning and operation of FPSO (Note 4).　JGC Group has a world-leading track record in FLNG as they have been involved in the design, procurement, and construction (EPC) of two of the seven FLNGs in operation or under construction around the world, as well as providing commissioning support.

LNG is positioned as a relatively low-carbon and clean fuel among fossil fuels. The use of LNG is expected to grow continuously and steadily along with the increasing demand in emerging countries. With this development results of FLNG with JGC, “K” LINE will continue to focus on the LNG value chain business to meet the diversifying needs of our customers.

(Note 1) FLNG is mainly comprised of a hull (including LNG storage tanks) and a topside plant which produces, stores, and ships LNG by liquefying natural gas on the sea.

(Note 2) AIP means ABS considers that the conceptual engineering as proposed is feasible for the intended application, and the facilities as presented are, in principle, in compliance with the applicable requirements of the applicable Rules/Regulations

(Note 3) Research and development of advanced technology related to marine resource development: MLIT support companies engaged in research and development for the commercialization of packaged products used in ships and products that contribute to cost reduction in the field of ocean development.

(Note 4) About FPSO service: https://www.kline.co.jp/en/service/energy/about/fpso.html

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has been selected as a constituent of FTSE Blossom Japan Sector Relative Index.

Created by FTSE Russell, a global index provider, the FTSE Blossom Japan Sector Relative Index reflects the excellent performance of Japanese companies in each sector that demonstrates strong Environmental, Social and Governance (ESG) practices, being designed to be sector neutral. Especially, among companies with high greenhouse gas (GHG) emissions, only companies that are evaluated by the Transition Pathway Initiative (TPI) Management Quality Score for their climate governance and climate change efforts are incorporated, in order to support climate transition to a low carbon economy. In addition, it has been adopted by Japan’s Government Pension Investment Fund (GPIF) as an ESG index for their passive investment

“K” LINE has been addressing sustainability as a priority issue of its corporate management, and is making full-scale efforts to contribute to the resolution of social issues. In environmental aspect, we have revised our 2050 environmental target to “The Challenge of Achieving Net-Zero GHG Emissions” in November 2021, and are reinforcing initiatives for both reducing our GHG emissions and supporting decarbonized society. As part of that, our introduction Plan of LNG-fueled large-scale dry bulk vessel with an automated kite system SEAWING, to be delivered in FY2023, has been certified as Introduction Plan of Vessel with Excellent Environmental Performance (Specified Vessel) by Japan’s Minister of Land, Infrastructure, Transport and Tourism in March 2022. Meanwhile, in social aspect, we have established “K” LINE Group Basic Policy on Human Rights in February this year, recognizing the international trend of increasing importance of respect for human rights.

Through our sustainability management, we will continue to contribute to the realization of a sustainable society, as well as strive to promote our own growth strategy and improve our corporate value.

A ceremony to mark the completion of the world’s first maritime transport of liquefied hydrogen, including its loading and unloading has been held in Kobe, Japan.

The demonstration voyage by the world’s first liquefied hydrogen carrier, Suiso Frontier, proved that an international liquefied hydrogen supply chain is possible, marking a significant step towards the utilization of hydrogen as a new energy source.

The HySTRA^※1 joint venture, comprising Iwatani Corporation, Kawasaki Heavy Industries, Ltd., Shell Japan Ltd., Electric Power Development Co., Ltd.(J-POWER), Marubeni Corporation, ENEOS Corporation, and Kawasaki Kisen Kaisha, Ltd. with support from NEDO^※2, is exploring the development of a large-scale marine transport supply chain.

The joint venture developed technologies to produce and transport large volumes of liquefied hydrogen, conducting demonstration tests between Japan and Australia to establish processes around the safe loading, offloading and storage of hydrogen. Insights from the demonstration voyage will also guide the development of international safety standards and codes for transporting liquefied hydrogen.

Suiso Frontier, the world’s first liquefied hydrogen carrier, departed Japan in December 2021 and arrived in Australia in January 2022. The ship was loaded with liquefied hydrogen produced from coal in Victoria, Australia, and returned to Japan in February 2022, unloading the cargo to a landside storage tank.

The HySTRA joint venture partners will continue to gather data and findings, and collaborate with various parties to promote this project and contribute to the development of a commercial hydrogen supply chain, as more industries explore hydrogen as a new energy source.

The HySTRA joint venture comprises:

The project had input from Japanese and Australian government agencies, including the Ministry of Economy, Trade and Industry and NEDO, and companies in Japan and Australia.

Japan-Australia Supply Chain Pilot Diagram

Reference

In Australia, Iwatani Corporation, Kawasaki Heavy Industries Group, J-POWER Group, Marubeni Corporation, Sumitomo Corporation, and AGL Energy Limited formed a consortium to build a gas refining facility, hydrogen liquefaction and loading terminal with subsidies from the Australian and Victorian governments. A local industrial gas company oversees ground transportation of hydrogen.

Kawasaki Kisen Kaisha, Ltd. (hereinafter “K” LINE) is pleased to announce that, effective as from today, we have participate in the feasibility study jointly conducted since March 2021 by and among A.P. Moller – Maersk, Fleet Management Limited, Keppel Offshore & Marine, Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, Sumitomo Corporation, and American Bureau of Shipping (*1), with the aim to establish a ship-to-ship based ammonia bunkering at the Port of Singapore, the largest bunkering port in the world (hereinafter “the Study”). Memorandum of Understanding was executed by and among the 8 companies, including Maritime & Port Authority of Singapore who has also decided to participate in the Study, at a ceremony held today during the occasion of Singapore Maritime Week 2022.

Emitting zero CO2 when combusted, ammonia has been considered as one of promising options among various alternative marine fuels to reduce greenhouse gas (GHG) emissions within the shipping industry, which is in line with the International Maritime Organization (IMO) strategy to achieve reduction of GHG emission by 50% in 2050 compared to the levels in 2008.

The Study aims to cover the entire end-to-end supply chain of ammonia bunkering, design of ammonia bunkering vessels, as well as related supply chain infrastructure. Relevant government agencies and experts in Singapore will be engaged in working towards the standardization of safe operation and regulations. Each partner will contribute to the Study within the scope set in line with their business domain.

We have long experience in handling of ammonia on board the vessel through technical management of ammonia carriers. In addition, we have know-how and expertise in the ship management service of bunkering vessel conducted within the regulatory framework and guidelines in Singapore which has been acquired through the management of Singapore’s first LNG bunkering vessel.

We believe that our engagement in the Study on the grounds of these expertise embodies the initiatives designated under our long-term environmental guideline – “K” LINE Environmental Vision 2050 (*2) – including “decarbonization of “K” LINE” and “promoting and supporting decarbonization of society”; hence we decided to participate in the Study. While watching trends in the development of international regulations concerning ammonia as marine fuel, we are planning to study ammonia-fueled vessels in more detail.

※1:     American Bureau of Shipping participated in the Study in October 2021.

※2:     “K” LINE’s environmental guideline. The target in 2050 was revised to be “net-zero”  in November 2021.  https://www.kline.co.jp/en/csr/environment/management.html

Partners

–           A.P. Moller – Maersk A/S   (HQ: Denmark)

–           Fleet Management Limited   (HQ: Hong Kong)

–           Keppel Offshore & Marine   (HQ: Singapore)

–           Maersk Mc-Kinney Moller Center    (HQ: Denmark) for Zero Carbon Shipping

–           Sumitomo Corporation    (HQ: Japan)

–           American Bureau of Shipping    (HQ: U.S.A.)

–           Maritime & Port Authority of Singapore   (Location: Singapore)

–           Kawasaki Kisen Kaisha, Ltd.    (HQ: Tokyo)