"K" Line

~ World’s first full scale CCS project ~

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) and Northern Lights JV DA have signed Bare Boat Charter and Time Charter contracts for two 7,500 m3 liquefied CO2 ships. The ships will be delivered in 2024 and will contribute to the world’s first full-scale carbon capture and storage (CCS) value chain.

The London-based subsidiary “K” LINE LNG Shipping (UK) Ltd. will undertake the management of two ships transporting liquefied CO2 from industrial emitters, including the Norcem Brevik and Hafslund Oslo Celsio carbon capture facilities, to the Northern Lights CO2 receiving terminal in Øygarden, Norway.

““K” LINE has deep experience in liquefied gas transport and a strong safety and environmental track record. We are pleased to partner with “K” LINE in operationalising this innovative value chain”, said Børre Jacobsen, Managing Director of Northern Lights.

CO2 transport is a key component to connect industrial emitters in Europe to suitable and safe CO2 storage sites such as the one operated by Northern Lights in the North Sea. Northern Lights offers a ship-based solution that provides flexibility to reach emitters across Europe.

Shipping is a scalable CO2 transport solution that is well-suited for sailing distances in Europe. Developing a flexible shipping solution as part of the world’s first cross-border CO2 transport and storage network, Northern Lights contributes to the development of a market for CO2 storage.

“We are honoured to participate in the Northern Lights project and contribute to the decarbonisation of industry. We have been able to develop a new field by making use of our decades of know-how in liquefied gas transport”, said Yukikazu Myochin, President and CEO of “K” LINE.

Northern Lights and “K” LINE will jointly establish operational procedures for safe transportation of liquefied CO2. The ships are classified by DNV and will be registered in Norway and operated under Norwegian (NOR) flag by mainly Norwegian shipboard personnel.

About Northern Lights

Northern Lights is developing an open and flexible infrastructure to transport CO2 from industrial emitters by ship to a receiving terminal in western Norway for intermediate storage, before being transported by pipeline for permanent storage in a geological reservoir 2,600 meters under the seabed. Operations are scheduled to start in 2024. The facilities are under construction and will enable Northern Lights to offer a safe and reliable shipping and storage service to industrial emitters from across Europe. With increased interest from industrial sectors in Europe, additional shipping and storage capacity will be developed as demand grows. Northern Lights JV DA is a registered, incorporated General Partnership with Shared Liability (DA) owned equally by Equinor, Shell and TotalEnergies.

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”.

Dimensions and Characteristics

Cargo tank capacity    : 7,500㎥

Length overall             ：130m

Breadth                       ：21.2m

Draft                            ：7.5m

– Aiming to be an even more environmentally friendly company using renewable energy –

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announced that its overseas subsidiary had installed a solar power generation system on the roof of building named Ocean Breeze (“the Building”) which was constructed in 2018 to strengthen and expand our seafarer’s training facility “K” Line Maritime Academy Philippines (“KLMA”) in Pasay, Metro Manila. Such system will cover the electricity usage of KLMA, which is located adjacent to Ocean Breeze Building.

KLMA is a comprehensive training facility that provides education and training using real equipment not only for Filipino seafarers but also for seafarers of all nationalities on “K” LINE-operated vessels. The facility is equipped with a latest ship handling simulator, an engine room simulator, and a platform that replicates an engine room for hazard simulation training. The Ocean Breeze building was fully furnished in March 2018 with a clinic for seafarers equipped with latest medical equipment and accommodations for 225 trainees and ready to receive 10,000 trainees per year. After the spread of COVID-19, the accommodations were also used as pre-boarding isolation facility and vaccination center. KLMA has been in operation since its predecessor, “K” Line Maritime Training Corporation (KMTC, established in 1993) and will be celebrating its 30th anniversary in 2023.

The region has a mild climate and long hours of sunshine throughout the year, and the Building is located in a sunny seaside area. The system has the capacity to generate more than 150 kWh of electricity required for KLMA’s use.

On December 8th, the handover ceremony for the system was solemnly held with the attendance of Yukikazu Myochin (President) and Kiyotaka Aya (Senior Managing Executive Officer) from “K” LINE, and Sadakatsu Hiramatsu, President of Shimizu Philippines Contractors, Inc. and the handover was successfully completed.

“K” LINE Group will continue its efforts to reduce its negative environmental impact, both at sea and shore.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) resumed team-building activities for seafarers in the Philippines, one of the major seafarer supplier countries, hosted by our related ship management companies in December which include seminars for LNG officers, a long-service award ceremony, and a Christmas event to which families were also invited, after refraining from face-to-face activities due to the global spread of COVID-19 that began in early 2020. Many of “K” LINE’s executives, including President Yukikazu Myochin, were in attendance.

President Yukikazu Myochin also visited the Maritime Industry Authority of the Philippines (MARINA) and met with Administrator Attorney Hernani N. Fabia, who reaffirmed “K” LINE’s policy of further strengthening educational activities for Filipino seafarers.

“K” LINE Group has decided to resume face-to-face events gradually, while keeping a close eye on COVID-19 situation. By building strong sense of mutual understanding with seafarers, who are the essential workers responsible for global marine transportation not only in the Philippines but around the world, and their families through face-to-face interaction, we aim to instill and mature our corporate culture (safety culture), which will lead to safe operations and the provision of high-quality transportation services.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) was selected as an “A List” company for 2022, the highest rating in the CDP Climate Change Questionnaire, on December 13th.

This is the seventh consecutive year that “K” LINE has been selected as an “A List” company, after being selected an “A List” company in 2016, in recognition of its leadership in transparency and performance in corporate sustainability on climate change.

CDP is an international non-profit organization (NGO) headquartered in London that works with more than 680 institutional investors worldwide with assets totaling US$130 trillion under management in 2022. Each year, CDP sends a questionnaire to companies regarding climate change risks and opportunities and their responses. The results of the survey are then used to evaluate the companies on an 8-grade scale (A List being the highest rating). The results of the survey are used as a universal indicator to measure corporate value.

Our long-term environmental guideline named “K” LINE Environmental Vision 2050 (Note 1), sets our own GHG reduction targets that exceed those of the International Maritime Organization (IMO), a specialized agency of the United Nations (UN), and promotes activities for the low-carbon and decarbonization of our company and society as part of the long-term management vision in our medium-term management plan.

Specifically, we are actively working to reduce GHG emissions through the introduction of LNG-fueled vessels and advanced initiatives such as the installation of the “Seawing” automated kite system, as well as through various councils and demonstration projects for the practical use of ammonia/hydrogen fueled zero-emission vessels. We are aware that our efforts to reduce the environmental impact of our business activities through the operation of our environmental management system have been highly evaluated.

This year, the number of companies certified as “A List” companies for CDP Climate Change is 283 worldwide, 74 for Japanese companies including “K” LINE.(200 worldwide, 55 for Japanese companies in 2021)

As a globally trusted logistics company rooted in the shipping industry, “K” LINE Group will continue to work to reduce its environmental impact in order to realize a sustainable society and increase its corporate value, based on its corporate philosophy of “contributing to the enrichment of people’s lives”.

(Note 1) Please see the following for details of our “K” LINE Environmental Vision 2050.

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce publication of “K” LINE REPORT 2022.

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 our efforts to improve corporate value over the medium to long term.

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

Kawasaki Kisen Kaisha, Ltd. (“K” Line) announced today that, together with ITOCHU Corporation, Nihon Shipyard Co., Ltd., Mitsui E&S Machinery Co., Ltd., and NS United Kaiun Kaisha, Ltd., has obtained an Approval in Principle (AiP) from Classification Society, Nippon Kaiji Kyokai for the design of an ammonia-fuelled ship (200,000 deadweight ton class bulk carrier and hereinafter “the Vessel”).

The vessel, which recently received an AiP, was developed by Nihon Shipyard as the part of the “Integrated Project for the Development and Social Implementation of Ammonia Fuelled Ships” which was jointly adopted by “the Green Innovation Fund Project / Development for Next-Generation Ships / Development of Ammonia Fuelled Ships” of the New Energy and Industrial Technology Development Organization (NEDO) (Note1).

At this time, there are no international guidelines for the use of ammonia as marine fuel, so ““K” Line and partners are looking toward obtaining Alternative Design Approval (Note 2) for the shipbuilding of the Vessel. A risk assessment (Hazard Identification Study – “HAZID”) was recently conducted on the safety of using ammonia as marine fuel, and the basic design of the Vessel was evaluated as “capable of ensuring the same level of safety as ships operating with existing fuel”.

The acquisition of the AiP is an important milestone for the implementation of ammonia-fuelled ships, a new challenge for the maritime industry, and also an important step toward the further promotion of the “Integrated Project” being facilitated by ITOCHU Corporation. “K” Line and partners will proceed with the development of the Vessel based on the basic design for which the AiP has been obtained, and aims to take delivery of the Vessel and begin its social implementation in 2026.

“K” Line has revised a part of its long-term environmental guideline, “K” Line Environmental Vision 2050 (Note3) in Nov 2021 and has set a new goal for 2050 “to achieve net zero GHG emissions”.

As a comprehensive logistics group based on the shipping industry, “K” Line Group will continue to work to reduce its environmental impact in order to realize a sustainable society and increase its corporate value, based on its corporate philosophy of “contributing to the enrichment of people’s lives”.

(Note1）Announced on 26^th October 2021:

Joint project on “Development of Ammonia-fuelled ship” adopted as Green Innovation Fund

https://www.kline.co.jp/en/news/Liquefied_gas/Liquefied_gas-4671091119285944783/main/0/link/211026EN.pdf

（Note2） Alternative Design Approval is to prove that the ship is as safe as a ship built in accordance with existing international regulations and to obtain approval from the competent authorities when the ship is designed without any international guidelines. Ships designed in accordance with ClassNK guidelines, such as the vessel, may use ammonia as a marine fuel if they are approved by the competent authorities in accordance with the SOLAS Convention (International Convention for the Safety of Life at Sea) and are built according to an approved alternative design.

(Note3) “K” LINE Environmental Vision 2050 can be seen in below link:

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

PT. “K” Line Mobaru Diamond Indonesia (KMDI), an affiliated company of Kawasaki Kisen Kaisha, Ltd. (“K” LINE), has completed land transportation of electronic vehicles (EV) for G20 summit held in Bali, Indonesia on 15^th and 16^th November.

Total of 860 electric vehicles were provided for G20 summit by multiple manufacturers that produce finished vehicles locally. The vehicles are transported by carrier car from each plant in Java island to Jakarta port and Jakarta port to Bali island by domestic vessel. KMDI was responsible for the carrier car transportation of approx. 40% of the vehicles.

While the Indonesian government is working to build up EV supply chain in Indonesia against the backdrop of rich natural resources such as nickel, it adopted various policies to implement more EV such as promoting governmental organization to use EV. The vehicles that are used for G20 summit are battery electric vehicles (BEV) only.

In our Medium-Term Management Plan published in May 2022 (Note1), we have defined logistics business as the role of contributing by enhancing profitability and are working to strengthen and expand our automotive logistics business. KMDI owns more than 300 car carriers and has the biggest share in Indonesia. While we continue to strengthen the business in Indonesia where stable growth in finished car production and sales is expected, we will keep contributing to the Indonesian government’s target to achieve carbon neutral by 2060.

(Note 1) Medium-Term Management Plan (Released on May 9, 2022)

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce the execution of five 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 Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. “K” LINE has already concluded seven long-term Time Charter contracts with QatarEnergy in August this year (Note 3), making the total number of twelve vessels.

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 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. 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.

“K” LINE and QatarEnergy have had long-term relationship through several existing projects. The new five Time Charter contracts, in addition to seven contracts executed in August 2022, will further strengthen the business relationship.

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) “K” LINE enters into Long-Term Time Charter with QatarEnergy for Seven Newbuilding LNG vessels (Released on August 10, 2022)

https://www.kline.co.jp/en/news/lng/lng186104931235583220/main/0/link/220810EN.pdf

(Note 4) X-DF 2.1 iCER is a low speed dual-fuel engine with gas at low pressure.

(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

We are pleased to announce the grand opening ceremony of our new in-house ship management company, K Marine Ship Management Pte. Ltd. (“KMSM”), in Singapore was held on 26^th October 2022 at 79 Anson Road, #06-01, Singapore 079906. The grand opening ceremony was attended by the key management from Kawasaki Kisen Kaisha, Ltd and KMSM together with the key industry leaders of Singapore’s Maritime Industry and distinguished guests.

The establishment of KMSM is in line with our “K” LINE Group’s plan to further enhance the “K” LINE Group’s value and presence in Asia and in Singapore. Being one of the global bases of the “K” LINE Group, KMSM will be supporting our “K” LINE Group’s Asia businesses, which has been identified as one of the future growth markets under our “K” LINE Group’s New Medium-Term Management Plan.

KMSM aims to provide high-quality and trusted ship management services and establish a customer-oriented support organization rooted in the region, and flexibly respond to diversifying needs. With this, it is KMSM’s intention to strengthen our global functional strategy structures of marine technology, organizations, human resources including ship management companies.

We look forward to the success of contribution from KMSM to the global shipping industry.

Related News Release

* May 09, 2022: Restructures of Safety and Quality Control Organization

～Challenge to establish an optimal organization for diversifying needs～

https://www.kline.co.jp/en/news/csr/csr3347564231945932575/main/0/link/220509EN.pdf

Kawasaki Kisen Kaisha, Ltd, (“K” LINE) is pleased to announce that it has received a certificate of appreciation from Ofunato City in Iwate Prefecture, Japan, at the ceremony to commemorate the 70the anniversary of the City, held on October 13, 2022. The certificates have been presented to companies, organizations, individuals, and local governments that have contributed to the development of municipal administration and its reconstruction from the Great East Japan Earthquake, and “K” LINE is among them.

In September 2011, “K” LINE donated five 20-foot reefer containers to the City, which suffered devastating damage from the earthquake and tsunami, as part of its support activities for disaster-stricken areas, especially for the early recovery of the fishery industry, a major industry in that area. Since our support activity was appreciated to have contributed to the recovery and reconstruction of the city that was severely damaged by the earthquake, “K” LINE was awarded the certificate on the occasion of the 70th anniversary of the City’s incorporation.

“K” LINE prays for the further reconstruction of Ofunato City and its further development in the future.