"K" Line

~ 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

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