"K" Line

Satoshi Kanamori, Managing Executive Officer at Kawasaki Kisen Kaisha, Ltd. (“K” LINE), presented “K” LINE’s initiatives regarding CCS (Carbon dioxide Capture and Storage) business developments during CCUS WORLD for the 22nd SMART ENERGY WEEK (Autumn 2024) *¹, held between October 2 and 4 at Makuhari Messe in Chiba, Japan.

In this presentation, he introduced “K” LINE’s initiatives in the Northern Lights Project *² the world’s first full-scale CCS value chain project, and the Offshore Sarawak CCS Project*³, which was selected as an Advanced CCS Project by the Japan Organization for Metals and Energy Security (JOGMEC). A lively discussion was also held with attendees.

“K” LINE’s booth will be on display at booth E23-52 until October 4. Please stop by if you visit the expo.

“K” LINE group is promoting a variety of initiatives to support the decarbonization of its own operations and society in accordance with its long-term environmental policy, “Environmental Vision 2050”. The knowledge gained through “K” LINE’s advanced liquefied CO2 transport projects will be utilized in the development of projects with liquefied CO2 shipping that will sequentially begin to operate in Japan and overseas in the future with the aim of realizing a sustainable society and increasing “K” LINE’s corporate value.

(*1)       September 12, 2024: “K” LINE to Exhibit at CCUS WORLD for the 22nd SMART ENERGY WEEK (Autumn 2024)

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240912.html

(*2)       February 6, 2024: “K” LINE enters into charter contracts with Northern Lights for third liquefied CO2 vessels:

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240206.html

(*3)       September 13, 2024: Commission a CCS engineering design work in Sarawak, Malaysia as the “Japanese Advanced CCS Projects” in FY2024

https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240913.html

Kawasaki Kisen Kaisha, Ltd. (Head office: Chiyoda-ku, Tokyo, President & CEO: Yukikazu Myochin, hereinafter ““K” LINE”) and Kamigumi Co., Ltd. (Head office: Kobe City, Hyogo, President & CEO: Yoshihiro Fukai, hereinafter “Kamigumi”) announce today that it was agreed that “K” LINE will establish a holding company that will become the parent company of “K” LINE LOGISTICS, LTD. (hereinafter “K” LINE LOGISTICS) to which “K” LINE will transfer all of the shares of “K” LINE LOGISTICS held by “K” LINE, and assuming the approvals and licenses from the relevant authorities are granted and relevant procedures have been made, “K” LINE will transfer 47% of the total shares of the holding company to Kamigumi.

1. Target Consolidated Subsidiary of “K” LINE – “K” LINE LOGISTCS, LTD.

2. Purpose – Since its establishment in 1960, “K” LINE LOGISTIC has been providing international logistics services, including forwarding, for more than 60 years, and plays an important role as a core company in the logistics business of the “K” LINE Group. Through this capital alliance, we aim to achieve further growth in domestic and overseas markets by collaborating making full use of both the global network of logistics services built up by “K” LOGISTICS and abundant logistics know-how and sales assets of Kamigumi, strengthening the functions of contract logistics, and providing high-quality and more diverse logistics services to customers.

3. Schedule – September 27, 2024 (Fri). Conclusion of the Share Transfer Agreement between “K” LINE and Kamigumi – April 1, 2025 (Tue）（Plan） Execution of the Share Transfer

4. Outline of the Holding Company

5. Outline of the Target Company （as of March 31, 2024）

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that “TEXAS HIGHWAY,” a car carrier currently under its operation, has been given a notation from Nippon Kaiji Kyokai (ClassNK). This notation means that additional fire-fighting measures have been implemented for the ocean transportation of battery electric vehicles (BEVs). *¹

“K” LINE has worked to strengthen its initiatives towards safer car transport. As a part of this, “K” LINE has developed and implemented a car firefighting manual for all vessels, which also applies to BEVs. This notation was given in response to this and other initiatives towards improvements in safety during transport.

“K” LINE plans to obtaining and apply some notations for other vessels operated by it. “K” LINE will continue to further improve measures against fires and work for greater safety in navigation and cargo operations as a marine transport company chosen by customers.

*1 Notation (vessel classification)
A notation given to vessels and systems that meet the requirements of vessel classification organization.

This time, it has been given the notation for Additional Fire-Fighting Measures for Vehicle Carrier (Fire Fighting)(Electric Vehicle)

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) will exhibit a booth at CCUS WORLD in the 22nd SMART ENERGY WEEK (Autumn 2024) from October 2 to 4, 2024.

“K” LINE is working on new business areas that will contribute to the decarbonization of society by utilizing the abundant experience and expertise we have cultivated in the shipping industry, based on the “K” LINE Environmental Vision 2050 – Blue Seas for the Future*¹. In the Carbon dioxide Capture and Storage (CCS) business field, “K” LINE will start Liquefied CO₂ transportation for Northern Lights Project*², the world’s first full-scale CCS value chain project this fiscal year. “K” LINE is also participating, as the only international shipping company, in the development of the Cross-border CCS project that was selected as an Advanced CCS Project*³ by the Japan Organization for Metals and Energy Security (JOGMEC) and advancing studies on CCS project to inject and store CO2 emitted in Japan in offshore Malaysia.

“K” LINE plans to display our activities in the CCS field at CCUS WORLD through panels, video, holograms of LCO2 carrier, and so on. Please stop by and visit the booth. “K” LINE will also deliver a speech entitled, “K” LINE’s Initiatives in the CCS Field, to be held at 1:30 pm, Wednesday October 2, in CCUS WORLD Seminar Room.

Exhibit Overview

Exhibit Name:                  CCUS WORLD – the 22nd SMART ENERGY WEEK (Autumn 2024)

Sponsor:                             RX Japan Ltd.

Dates:                                  Wednesday, October 2, 2024 to Friday, October 4, 2024

Venue:                                 Makuhari Messe, Japan

Booth Location:              E23-52

PR Seminar Overview

Date:                                    Starting Wednesday, October 2, 2024, from 1:30 pm

Venu:                                    CCUS WORLD Seminar Room in the hall No.8

Speaker:                             Satoshi Kanamori, Managing Executive Officer, Kawasaki Kisen Kaisha, Ltd.

Seminar Title:                  “K” LINE’s Initiatives in the CCS Field

Prior Registration:          Not required (registration required to enter the exhibit)

Official Exhibit Website

https://www.wsew.jp/hub/en-gb/about/ccus.html

*1.          The “K” LINE Environmental Vision 2050: Blue Seas for the Future:
https://www.kline.co.jp/en/sustainability/environment/management.html

*2.          February 6, 2024: “K” LINE enters into charter contracts with Northern Lights for third liquefied CO₂ vessels:
https://www.kline.co.jp/en/news/carbon-neutral/carbon-neutral-20240206.html

*3.          About Advanced CCS Projects:
Nine role model projects were selected as Japanese Advanced CCS Projects in 2024. These projects are supported by the Ministry of Economy, Trade and Industry (METI) and JOGMEC with the goal of supporting the entire value chain, from CO2 separation to collection, transport, and storage. Both METI and JOGMEC aim to launch CCS projects by 2030.
https://www.jogmec.go.jp/english/news/release/news_10_00072.html

Feasibility study on a large-scale floating vertical axis wind turbine

Albatross Technology Inc.

Electric Power Development Co., Ltd.

Tokyo Electric Power Company Holdings, Inc.

Kawasaki Kisen Kaisha, Ltd.

Sumitomo Heavy Industries Marine & Engineering Co., Ltd.

A consortium of five companies—Albatross Technology Inc. (Albatross), Electric Power Development Co., Ltd. (J-POWER), Tokyo Electric Power Company Holdings, Inc. (TEPCO HD), Kawasaki Kisen Kaisha, Ltd. (“K” LINE), and Sumitomo Heavy Industries Marine & Engineering Co., Ltd. (wholly owned by Sumitomo Heavy Industries, Ltd., SHI-ME)—has been selected to conduct a feasibility study on large-scale floating vertical axis wind turbines as part of the New Energy and Industrial Technology Development Organization’s (NEDO) public call for projects to develop next-generation technologies that help promote the adoption of floating offshore wind power.

As Japan pushes to make renewable energy a primary power source, expectations for offshore wind power are high. Given the limited shallow coastal waters around Japan, there is a pressing need to commercialize floating offshore wind technology.

This feasibility study aims to verify the viability of large-scale commercial vertical axis (floating axis) wind turbines, where both the turbine and floating foundation rotate together, as a game-changing next-generation technology for floating offshore wind turbines. The consortium will conduct design work toward obtaining basic design approval. Large-scale vertical axis wind turbines can achieve efficiency comparable to conventional (horizontal axis) wind turbines, while also enabling the use of smaller and more cost-effective floating structures. Furthermore, as they can be produced using nearly the same design regardless of differences in water depth or seabed conditions, it is expected that mass deployment will also lead to cost reductions.

Leveraging each company’s respective expertise, the five companies will collaborate on developing floating axis wind turbines, aiming to establish offshore wind power as a primary energy source and contribute to the realization of a carbon-neutral society.

Reference: Press release dated May 30, 2023

“Joint Research Agreement Signed for Next Generation (Floating Axis) Small-scale Offshore Wind Turbine Demonstration Project”

https://www.jpower.co.jp/english/news_release/pdf/news230530e.pdf

Company Role

Subcontractors

Fukui Fibertech Co., Ltd.: Development of continuous FRP molding technology

Innovative Composite Materials Research and Development Center (ICC) at Kanazawa Institute of Technology: Development of continuous FRP assembly technology

GH Craft Ltd.: Design of high-strength, lightweight composite materials

“K” Line Wind Service, Ltd.: Verification of offshore wind-related operations using vessels

Division of Global Architecture, Graduate School of Engineering, Osaka University: Analysis of floating foundation motion characteristics

Chubu University: Lightning protection measures

Graduate School of Engineering, The University of Tokyo: Life cycle assessment of CO₂ emissions and economic efficiency

Institute of Industrial Science, The University of Tokyo: Prediction of marine environmental impacts

Kawasaki Kisen Kaisha, Ltd. (“K” LINE)

Mitsui O.S.K. Lines, Ltd. (MOL)

Nippon Yusen Kabushiki Kaisha (NYK Line)

Mitsubishi Shipbuilding Co., Ltd.

Imabari Shipbuilding Co., Ltd.

Japan Marine United Corporation (JMU)

Nihon Shipyard Co., Ltd.

• “K” LINE, MOL, NYK Line, Mitsubishi Shipbuilding, Imabari Shipbuilding, JMU, and Nihon Shipyard have started a joint study to establish standard specifications and designs for liquefied CO₂ (LCO₂) carriers.
• In the future, they will also consider designing, developing, and building new fuel ships using decarbonization technologies like ammonia fuel.

“K” LINE (President: Yukikazu Myochin, Headquarters: Chiyoda-ku, Tokyo), MOL (President: Takeshi Hashimoto, Headquarters: Minato-ku, Tokyo), and NYK Line (President: Takaya Soga, Headquarters: Chiyoda-ku, Tokyo) have started a joint study with Mitsubishi Shipbuilding (President: Shin Ueda, Headquarters: Minato-ku, Tokyo), Imabari Shipbuilding (President: Yukito Higaki, Headquarters: Imabari City, Ehime), JMU (President: Nobuyuki Nada, Headquarters: Yokohama City, Kanagawa), and Nihon Shipyard (President: Kiyoshi Higaki, Headquarters: Chiyoda-ku, Tokyo), which is a joint venture between Imabari Shipbuilding and JMU, to establish standard specifications and designs for LCO₂ carriers.

As the demand for LCO₂ carriers is expected to grow in various CCS (Carbon dioxide Capture and Storage) projects that transport CO₂ collected in Japan to storage sites by sea, it is necessary to build and supply LCO₂ carriers stably within Japan to realize the CCS value chain and improve economic efficiency. Therefore, the seven companies have agreed to conduct a joint study to establish standard specifications and designs for LCO₂ carriers and to establish a construction supply chain.

This study will focus on LCO₂ carriers and aim to enable construction at other shipyards in Japan as well. Additionally, they plan to collaborate widely with industry stakeholders, including other shipyards that share the same awareness of the issues, to contribute to the further progress of a decarbonized society by developing low emission ships using decarbonization technologies (such as ammonia fuel).

Kawasaki Kisen Kaisha, Ltd.

Kawasaki Kinkai Kisen Kaisha, Ltd.

“K” Line Wind Service, Ltd.

Acteon Group Operations Limited

“K” Line Wind Service Ltd (KWS), a subsidiary of the “K” LINE Group, and Acteon, the international marine energy and infrastructure services business, have signed a non-exclusive memorandum of understanding (MOU) that sets out how the companies will use each other’s skills and services to collaboratively support the Japan’s Floating Offshore Wind project including demonstration and commercial projects.

InterMoor, Acteon’s moorings and anchors brand, will provide comprehensive mooring, transportation and installation engineering support to KWS for the desktop study of the commercial project and to support the offshore installation of the demo project.

Acteon provides mooring solutions for all types of floating assets, from design and engineering to decommissioning. These include anchor and mooring system construction; floating infrastructure positioning and hooking up; mooring installation and inspection; maintenance, repair and replacement services; and late-life disposal services.

KWS has been actively engaged in the field of Floating Offshore wind. In the Japan’s Floating Offshore Wind Research and Development program, NEDO Green Innovation Fund Phase 1, KWS conducted intensive research for efficient mooring methods for large-scale Floating Offshore Wind farms. For conducting actual towing and mooring of floating assets for demonstration and commercial projects, KWS aims to provide safer and more efficient transportation and installation services with InterMoor’s engineering support.

“We can ensure the success and efficiency of this critical project,” says Barry Parsons, Chief Commercial Officer, Acteon, “by combining our expertise and resources in engineering and offshore installations with KWS’s capabilities.”

“Acteon is an ideal collaboration partner,” says Teruki Kuramoto, President of KWS. “They have a proven history of fixed and floating wind innovation. Combined with the “K” LINE Group’s expertise in operating Offshore Support Vessels, we will help to drive innovation and sustainability in floating offshore wind energy in Japan.”

About Acteon

Acteon provides specialist engineering, services and technology to companies who develop and own marine infrastructure across the life of their assets. The company enable customers to achieve their operational goals with a more efficient integrated solution: reducing the cost and carbon footprint through value engineering without compromising the quality of delivery.

This is achieved by applying its domain expertise to increase efficiencies and enhance commercial and environmental value for customers across the renewable, nearshore construction and oil and gas industries.

The company specialise in data collection and survey techniques ahead of construction, the installation of key foundation and anchoring technologies, the monitoring and management of assets and the decommissioning of assets.

www.acteon.com

About KWS

KWS was established in June 2021 as a joint venture company between Kawasaki Kisen Kaisha, Ltd (“K” LINE) and Kawasaki Kinkai Kisen Kaisha, Ltd. The company provide a throughout logistics and vessel solution to support supply chain development of Offshore Wind Industry in each business phase of Survey, Transportation, Construction, and O&M.

In addition, “K” LINE Group has a solid track record in the operation of Anchor Handling Tug Supply Vessels, Platform Supply Vessels, and Offshore Support Vessels overseas and Japan.

www.kline.co.jp

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has posted to its official website a video that explains progress in the implementation of the medium-term management plan and the results in the first three months of FY2024. The video is also posted on “K” Line With, a video communication site for “K” LINE Group’s employees.

A video explaining progress in implementing the medium-term management plan and results for the first three months of FY2024

https://www.kline.co.jp/en/corporate/kline_with.html

“K” LINE provides quarterly updates on the progress of its medium-term management plan through “K” Line With. Based on the FY2024 theme, “Steady Steps Toward Further Growth,” in addition to the video outlining the latest performance forecasts, it also focuses on three key aspects of the management plan: business strategy, functional strategy and capital policy. It offers detailed insights into the company’s initiatives and progress of the management plan, aiming to share this information with both internal and external stakeholders.

In the first half of the video, “K” LINE presents its performance forecast for FY2024, highlighting the improvements since the last announcement. These improvements are attributed to the stable performance of “K” LINE’s own businesses and the current environment surrounding the containership business.

The second half of the video discusses specific initiatives within the functional strategy designed to enhance technology and expertise, the backbone of “K” LINE’s own business capabilities, and human resources and organization, which are crucial for connecting these capabilities to the business strategy.

“K” LINE has posted the video on its official website in addition to “K” Line With to make outside stakeholders more aware of the Company’s activities. “K” LINE also aims to deepen understanding of the medium-term management plan among business sites on land and sea 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.

(A news release related to “K” Line With)

November 17, 2023: Sharing Information within the Group Using Video Communication Site for Employees “K” Line With

https://www.kline.co.jp/en/news/other/other-20231117.html

2^nd August 2024

Kawasaki Kisen Kaisha, Ltd.

Please be advised that “K” Line Tokyo Head Office made the following press release today.

It is also available on our Web site both in English and Japanese.

https://www.kline.co.jp/en/

・Financial Highlights for 1st Quarter FY2024

Please be advised that “K” Line Tokyo Head Office made the following press release today.

This is available on the website both in English and Japanese.

(https://www.kline.co.jp/en/

・Notice on Revision to Consolidated Financial Forecasts for the Fiscal Year ending March 2025