"K" Line

Kawasaki Kisen Kaisha, Ltd. (“K” LINE), together with ITOCHU Corporation, NS United Kaiun Kaisha, Ltd., Nihon Shipyard Co., Ltd. and Mitsui E&S Machinery Co., Ltd. have jointly applied for and been selected for the “Green Innovation Fund Project / Development Project for Next-Generation Ships / Development of Ammonia-Fueled Ships,” a project publicly announced by the New Energy and Industrial Technology Development Organization (NEDO).

In order to achieve the International Maritime Organization’s strategy to reduce greenhouse gas (GHG) emissions, this project will use ammonia as marine-fuel, which is attracting attention from various fields as a candidate for alternative fuels, to develop, own and operate propulsion systems and hulls ahead of other countries, with the aim of implementing ammonia-fueled ships in society under Japan’s leadership as early as possible by 2028, so that Japan’s maritime industry can maintain its long-term advantage in the field of zero-emission ships.

Role of each company

Through the “Joint Study” framework for studying ammonia as an alternative marine fuel (Note 1) established in June this year, “K” LINE has been studying the use of ammonia as marine-fuel. Together with the four companies involved in this joint project, “K” LINE will continue to work toward the social implementation of ammonia, a promising zero-emission fuel, as a marine-fuel in society.

~Captured CO2 has Purity greater than 99.9%, Demonstrating performance in line with Plan~

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has successfully separated and captured carbon dioxide (CO2) from the exhaust gas emitted from the vessel, coal carrier “CORONA UTILITY”(operated by “K” LINE for Tohoku Electric Power Co., Inc.), which has been installed the “CC-OCEAN” project for the verification of CO2 capture plant onboard as part of the “Research and Development for advancing marine resources technologies” (Note 1), in cooperation with Mitsubishi shipbuilding Co., Ltd. (“Mitsubishi Shipbuilding”) and Nippon Kaiji Kyokai (“Class NK”).

As a result of demonstration, the captured CO2 had a purity (Note 2) of more than 99.9%, which is in line with the planned performance.

In early August 2021, after installation of a small-scale CO2 capture plant (Note 1), experts from Mitsubishi Shipbuilding were onboard the vessel to operate, maintain the plant, and instruct the ship’s crew how to operate, as well as measured, analyzed the captured CO2 and evaluated the system performance.

From mid-September, the ship’s crew has been conducting the operation, measurement and maintaining the plant, and will continue to evaluate the safety and operability of the CO2 capture plant in order to sort out the issues to be considered and conduct research and development for future commercialization.

Based on the “K” LINE Environmental Vision 2050 (Note 3), we will continue to research, develop, and introduce various environmental load reduction technologies, including the “CC-OCEAN” project, and contribute to activities aimed at achieving GHG reduction targets.

(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

(Note 2) The purity of the CO₂ captured by the CO₂ capture plant. When a terrestrial plant captures CO₂ with a purity of more than 99.9%, the captured CO₂ can be used in a wide range of applications, including chemical processes to enhance production of fertilizer or methanol, general use such as dry ice for cooling, and enhanced oil recovery (EOR) to increase crude oil production.

(Note 3) “K” LINE Environmental Vision 2050, Blue Seas for the Future, which is formulated in 2015.

Based on the revision in June 2020, our milestone target is set to [improve CO2 emission efficiency by 50% over 2008], which is surpassing the IMO target of a 40% improvement.

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

On October 7th, 2021, “the Emergency Response Exercise” was carried out as a part of training of optimum emergency response prepared for any major maritime accidents. The scenario of the exercise developed when an Ore Carrier chartered by “K” Line collided with a Coastal Cargo Carrier when she was transiting in Tokyo Bay. We confirmed a series of emergency response process by setting crisis-management headquarters upon receiving an incident report, establishing communication channel with Ship Owner, Ship Management company and conducting a mock press conference at the end of the exercise.

Online tools were effectively used on the assumption that many concerned members were working remotely in response to the COVID-19 outbreak to enhance our communication by using online tools during an emergency response and then identified the points and tasks to work and improve on.

A mock press conference was held both at the press room and online simultaneously. Many questions were raised by the attendees as media reporters that made the event more realistic and momentous.

“K” Line principle and vision calls for enhancing “Safety”, “Environment” and “Quality”. While growing interest on safety and environmental load reduction over the world, we are preparing for any unexpected and unforeseen circumstances through the “Emergency Response Exercise”. Furthermore, we promote safety in navigation, environmental conservation, and quality enhancement, which are important to fulfill social responsibility while doing work on awareness building activities like “Safety Campaign”.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announced today the signing of a joint research agreement with Tokyo University of Marine Science and Technology (TUMSAT) to start joint research on marine plastics. The TUMSAT has been leading research in this field, surveying the amount of marine plastic waste (Note 1), including microplastics (plastic particles 5 mm or less) floating in the world’s oceans. This joint research will use “K” LINE’s vessels, which navigate many seas around the world, to collect samples of plastic particles, and is expected to promote the study of marine plastic waste.

The joint research will evaluate how much plastic waste can be collected from seawater under common process without installing any special equipment on intake and filtration of seawater by ships on voyages in order to avoid possible further marine pollution. First, the “K” LINE vessel will take samples from the seawater intake line with a strainer while the ship is running, and then the TUMSAT will collect plastic particles from the samples and analyze the material, size, and other elements.

The project will lead to further research, such as the collection of microplastics in the open sea using ocean-going vessels and the establishment of a monitoring system for the density of microplastics in specific areas.

As an integrated logistics company grown from shipping business, the “K” LINE Group is working to reduce its environmental impact based on its corporate philosophy of helping to enrich the lives of people and its mission of “Blue Seas for the Future.” (Note 2)

(Note 1) The marine plastic waste problem

It is said that approximately eight million tons of plastic waste is discharged from land into the ocean every year throughout the world. This causes various problems, such as deterioration of ecosystems and the marine environment, deterioration of coastal functions, disruption of vessel navigation, and impacts on fisheries and tourism. There is also concern about the impact of microplastics from seafood on the human body. As such, it has become a global environmental issue. It is also said that more than 95% of marine plastic waste originates from land-based sources. Social initiatives are underway on land such as efforts to prevent the generation of plastic waste and introduce legislation. However, there is still no established method of recovering this marine plastic waste without expending significant energy.

(Note 2) “K” LINE Environmental Vision 2050: “Blue Seas for the Future”

Tackling marine plastic waste is part of the Action Plan for until 2030.

https://www.kline.co.jp/en/csr/environment/management/main/00/teaserItems1/0/linkList/0/link/K-LINE_E-vision_en_2020_v2.pdf

Today, the 210,000-dwt ton capesize bulker “CAPE BROLGA” which had been under construction at Tsu shipyard of Japan Marine United Co., Ltd., has been delivered to Kawasaki Kisen Kaisha, Ltd. (“K” LINE).

The vessel has been built by adopting the original energy-saving propulsion devices made by Japan Marine United Corporation and the vessel’s accommodation which has consequently reduced the resistance of drag caused by oncoming wind. (*1) She is expected to reduce fuel consumption by these devices and low wind resistance accommodation, compared to conventional vessels and growing the obtainable deadweight. It is a state-of-the-art ship that gathers world-class technology among capesize bulk carriers.

Additionally, in order to improve the resistance towards corrosion of the cargo holds of the vessel, a specific cargo hold corrosion-resistant steel (JFE-SIP®-CC) (*2) for coal developed by JFE Steel Corporation has been adopted.

She will be engaged in the carrying of iron ore and coal transport for JFE Steel Corporation under a long-term consecutive voyage charter contract.

With plenty of vessels of various types and sizes (from very large to small), “K” Line offers its customers a unique range of transport services. “K” Line will remain agile in actively responding to the diversifying needs for shipments of both ore and other iron-bearing raw materials.

Vessel Particulars

Main Measure  :  LOA 299.99M × Width 50.00M ×Depth 25.00M × Draft 18.40M

Deadweight  :  211,982 T

Gross Ton   :  108,605

Main Engine   :   Hitz MAN-B&W 7S65ME-C-8.5-HPSCR

Speed  :  14.3KTS

Class  :  NK

Flag : Japan

Builder  :  Japan Marine United Corporation

(*1) Super Stream Duct®, SURF-BULB®, ALV-Fin®, which are able to reduce fuel consumption compared to conventional equipment, are installed near the propeller, and LEADGE-BOW®, which has a shape that reduces resistance from waves on the bow has been adopted.

Energy saving devices | Hydrodynamic engineering | Technology development | Japan Marine United Corporation (jmuc.co.jp)

(*2) JFE-SIP®-CC: Corrosion Resistant Steel for Coal Cargo Holds

JFE Steel Corporation | Plates | Corrosion-Resistant Steel Plate for Shipbuilding (jfe-steel.co.jp)

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that we have signed “Transition Linked Loan (TLL)” with syndicated lenders, arranged by Mizuho Bank Ltd. (MHBK), in accordance with the “Transition Linked Finance Framework (Framework)” which is based on “K” LINE Environmental Vision 2050(R1), announced September 6^th, 2021.(R2)

In this TLL’s finance scheme, we have set 3 sustainability performance targets (SPTs) in line with our transition strategies for decarbonization and linked them with a prefixed loan interest matrix. This scheme brings us incentives on our decarbonization activities as well as accelerating and contributing to the global goal for decarbonization.

This TLL is our second transition finance (“Purpose Unspecified Finance”) since our 1st transition loan (“Purpose Specified Finance”) in March 2021(R3). “K” LINE is the first company to originate two consecutive transition finances (Purpose Specified / Unspecified) in short term in Japan. Furthermore, the loan amount is one of the largest scales among ESG loans which is based on a policy by the Loan Market Association.

In order to promote this “Transition Linked Finance” continuously, “K” LINE has received certification from Japan Credit Rating Agency, Ltd. (JCR) (R4) for the compliance with “Basic Guidelines on Climate Transition Finance” by Ministry of Economy, Trade and Industry and related guidelines and policies.

This TLL is also selected as a model case for transition finance by the Ministry of Economy, Trade and Industry. Outline of the finance is as follows.

<Outline of the finance>

※Details of SPTs

①Total yearly GHG emissions throughout all loan term

②Yearly CO2 emissions per ton-mile throughout all loan term

③“A-” rating or higher by CDP rating

All above SPTs are connected with a matrix table of loan interest and this promotes our transition strategy. 

<References>

(R1) “K” LINE Environmental Vision 2050 – Blue Seas for the Future –

https://www.kline.co.jp/en/csr/environment/management/main/00/teaserItems1/0/linkList/0/link/K-LINE_E-vision_en_2020_v2.pdf

(R2) Released on September 6, 2021: Newly formulated Transition Linked Finance Framework

https://www.kline.co.jp/en/news/csr/csr4178814345199333215/main/0/link/210906EN.pdf

(R3) Released on March 12, 2021: First Climate Transition Finance in Japan

https://www.kline.co.jp/en/news/car/car-7503535198498277982/main/0/link/210312EN2.pdf

(R4) Japan Credit Rating Agency, Ltd. (JCR) website

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

※ “K” LINE Group, as a participant in the United Nations Global Compact, is promoting

activities that contribute to SDGs (Sustainable Development Goals), and this TLL is a part of its ongoing activities.

(https://www.un.org/sustainabledevelopment/

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has received a Special Award for Safety and Smart Environment for Seafarers (SSS) sponsored by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) for the “K”ARE program (Note 1) to promote instilling “Non-Technical Skills” into seafarers.

Special Award for Safety and Smart Environment for Seafarers is an award system implemented as part of the initiatives in the 11th Basic Plan for the Prevention of Seafarers’ Accidents, and is designed to prevent seafarers’ occupational accidents, safe operation, health management, and labor support for ship owners, seafarers, and related parties. The purpose of this project is to contribute to the improvement of the working environment for seafarers as well as the prevention of accidents involving seafarers and marine accidents by commending the excellent efforts as the ” Special Award for Safety and Smart Environment for Seafarers ” and promoting the dissemination and utilization of such initiatives. The “K”ARE program was evaluated as one of the excellent initiatives.

“K” LINE continues to make efforts for maturing the organizational safety culture through the improvement of “Non-Technical Skills” and provide safe, sustainable, and high-quality transportation services that contribute to society.

(Note 1) “K”ARE program: https://klinelnguk.com/continuous-improvement/

Through the “K”ARE program, everyone in the “K” LINE group both onboard and ashore will share its societal mission and values, and develop a truly open culture where each individual can naturally demonstrate leadership regardless of title or background. “K”ARE program has been introduced since this April, utilizing Norway based SAYFR’s insight and gamified learning apps.

Announced on 28 – April 2021: Introduction of the “K”ARE program

https://www.kline.co.jp/en/news/csr/csr388536082780195320/main/0/link/210428EN.pdf

Progressing towards 2030 Interim Milestones and Action Plan for Low-Carbonization

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) has decided to procure eight 7,000 units class car carriers fueled by LNG (liquefied natural gas) by FY2023 to FY2025, following our first LNG-fueled vessel, “CENTURY HIGHWAY GREEN” which was delivered on March 12, 2021.“K” Line has made an agreement to order the new next-generation of environmentally friendly car carriers from NIHON SHIPYARD CO., LTD., SHIN KURUSHIMA DOCKYARD CO., LTD., and

CHINA MERCHANTS JINLING SHIPYARD (NANJING) CO., LTD, two vessels in each of three shipyards.

Next-generation of environmentally friendly vessels are 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 use of LNG fuel and EGR（Exhaust Gas Recirculation）, compared to conventional vessels using heavy fuel oil.

In “K” LINE Environmental Vision 2050 (Note1), we have set the 2030 interim target of improving CO2 emission efficiency by 50% over 2008, surpassing the IMO target of 40% improvement. We are planning to substitute LNG fuel and other new fuels for conventional heavy fuel oil to achieve the targets set forth.

In accordance with “K” LINE Environmental Vision 2050, we will flexibly and proactively listen to customer demands including environmental issues and find the best solution to contribute to the sustainable development of the society.

Please refer to the following releases related to LNG-fueled vessels :

• March 2021:

The first Car Carrier fueled by LNG has been delivered to K” LINE.

https://www.kline.co.jp/en/news/car/car753727087818379669/main/0/link/210312EN1.pdf

• July 2021:

Released Signing of the first Consecutive Voyage Charter for a LNG-fueled Capesize Bulk Carrier

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

• September 2021:

“K” LINE to procure 8 Next-generation Environmentally Friendly Car Carrier

References

EEDI and Regulations of SOx and NOx

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

(Note 1) “K” LINE Environmental Vision 2050 “Blue Seas For the Future”

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

Kawasaki Kisen Kaisha, Ltd. (“K” Line) is pleased to announce that it has reached an agreement with GYXIS Corporation (GYXIS) to enter into a Time Charter contract based on a new Kawasaki Heavy Industries, Ltd.－built 86,700㎥ LPG Fueled VLGC (Very Large Gas Carrier) for LPG/Ammonia Transport.

“K” Line has placed an order for our first LPG fueled LPG/Ammonia carrier to Kawasaki Heavy Industries, Ltd. and the vessel will be delivered from their Sakaide factory in 2023.

The vessel will be equipped with LPG dual fuel system and reduce the emissions of CO2 by approx. 20%, SOx by 90 to 100%, and NOx by 10 to 15% with LPG fuel mode in comparison with existing VLGCs.

Moreover, the vessel will be given the excellent design to maximize the fuel efficiency and perform more 30% of CO2 emission reduction in the Energy Efficiency Design Index (EEDI) which fully meets the reduction target of the International Maritime Organization (IMO). (Note1)

Furthermore, the newly ordered vessel is also designed to transport Ammonia which draws attention as a zero-emission fuel, and as one of the methods to transport Hydrogen.

According to “K” LINE Environmental Vision 2050 (Note2), we are addressing reduction of Greenhouse Gas(GHG) with the cooperation of customers and all of the concerned parties.

Outline of the Vessel

LOA   : approx. 230.00 meters

Breadth   : approx. 37.2 meters

Depth  : approx. 21.9 meters

Tank Capacity : 86,700 m3

(Note1) EEDI and Regulations of SOx and NOx https://www.kline.co.jp/en/csr/environment/regulation.html

(Note 2) “K” LINE Environmental Vision 2050, which is formulated in 2015. Based on the revision in June 2020, our milestone target is set to [improve CO2 emission efficiency by 50% over 2008], which is surpassing the IMO target of a 40% improvement.

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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that we have formulated a “Transition Linked Finance Framework (Framework)” which is based on “K” LINE Environmental Vision 2050(R1). With using this Framework, we plan to finance “Transition Linked Loan (TLL)” at the end of September 2021.

In order to promote this “Transition Linked Finance” continuously, “K” LINE has got certification of “Basic Guidelines on Climate Transition Finance” by Ministry of Economy Trade and Industry and related guidelines and policies for this TLL by Japan Credit Rating Agency, Ltd. (JCR)(R2).

This TLL is also selected as “Example model of Climate Transition Finance of the 3rd year of Reiwa era” by Ministry of Economy Trade and Industry of Japan.

This TLL is our second transition finance (“Purpose Unspecified Finance”) since our 1st transition loan (“Purpose Specified Finance”) in March 2021(R3). “K” LINE is the first company who originates two consecutive transition finances (Purpose Specified / Unspecified) in short term in Japan and we believe these finances contribute to decarbonization. Outline of the finance is as follows.

Outline of finance

※Details of SPTs

①Total yearly GHG emissions throughout all loan term

②Yearly CO2 emissions per ton-mile throughout all loan term

③“A-” rating or higher by CDP rating

All above SPTs are connected with a matrix table of loan interest and this promotes our transition strategy. 

References

(R1) “K” LINE Environmental Vision 2050 – Blue Seas for the Future –

http://www.kline.co.jp/en/csr/environment/index.html

(R2) Japan Credit Rating Agency, Ltd. (JCR) website

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

(R3) Released on March 12, 2012: First Climate Transition Finance in Japan

https://www.kline.co.jp/en/news/car/car-7503535198498277982/main/0/link/210312EN2.pdf

(R4）“K”LINE SUSTAINABILITY BOOKLET (published English version in July,2021)

https://www.kline.co.jp/en/csr/group/booklet.html

※ “K” LINE Group, as a participant in the United Nations Global Compact, is promoting

activities that contribute to SDGs (Sustainable Development Goals), and this TLL is a part of its ongoing activities.

(https://www.un.org/sustainabledevelopment/)