"K" Line

Kawasaki Kisen Kaisha, Ltd. and its group companies (“K” LINE Group), are pleased to announce that they have provided free ocean transportation of new desks and chairs for students of Santiago Japanese School^*1 (the School) in Santiago, the capital city of Chile. The free transportation was carried out through collaboration among several “K” LINE group companies, including “K” LINE CHILE LIMITADA. (KCL) in Chile which lead the project.

KCL, responded to the request from the School, applying its expertise as a freight forwarder^*2 and comprehensive logistics service provider in Chile. It made a series of arrangements, including ocean transport from Yokohama to San Antonio in Chile where they were unloaded, customs clearance and delivery to the School, so as to ensure the seamless transportation of the desks and chairs.

Within Japan, upon receiving the desks and chairs at the Port of Yokohama, Daito Corporation, another “K” LINE group company, did the customs clearance process and the loading of the desks and chairs onto the vessel. “K” LINE took charge of ocean transport with its car carrier, which regularly calls San Antonio. KCL was responsible for delivering the desks and chairs from the port to the School. The cross-functional teamwork of the “K” LINE Group, specifically Daito Corporation, the “K” LINE car carrier division and KCL, made the seamless transportation of the desks and chairs possible.

The “K” LINE Group hopes its effort will enable Japanese children in Chile who are living away from home to study successfully in a well-equipped environment. The “K” LINE Group, including KCL, will continue to undertake similar initiatives to help raise the next generation of children.

*1             Formerly known as Santiago Japanese Supplementary School, the school opened in 1972 to educate Japanese children. Santiago Japanese School was established in 1982 in the same building. The School relocated to the Vitacura area in 1984. It relocated again to its current location (in the Lo Barnechea area of northeastern Santiago) in 1992, and celebrated its 40th anniversary in 2022. The School is managed by the Fundacion Cultural y Educacional Japonesa established by Camara Chileno Japonesa de Comercio e Industria A.G. It provides a curriculum that is in line with the compulsory education system in Japan.

*2             A company that provides fully integrated comprehensive logistics services, including freight transportation arrangements, customs clearance and insurance arrangements using different modes of transport, such as maritime shipping, air freight and land transportation.

Brussels and Tokyo, 12 June 2024 –Tree Energy Solutions (TES), a global green energy company leading the way in the production of e-NG (electric natural gas derived from green hydrogen), and Kawasaki Kisen Kaisha, Ltd. (“K” LINE), a prominent Japanese logistics company renowned for its diverse fleet, are teaming up with each other to lead the transition towards net-zero greenhouse gas emissions in the maritime sector by 2050.

With a mission to deliver reliable and affordable green energy through giga-scale projects, TES is developing a global portfolio of e-NG production and import projects. e-NG, a green molecule obtained by combining green hydrogen with biogenic or recycled CO2, is poised to revolutionise the decarbonisation of the maritime transport sector. In parallel, “K” LINE is strategically advancing towards 2030 interim milestones, which include transitioning its vessel to cleaner fuels such as hydrogen and e-NG.

“K” LINE and TES are exploring potential collaboration opportunities, including broadening the scope of e-NG partnerships and the various facets of the value chain to accelerate the adoption of cleaner fuels in maritime transport. This collaboration entails blending captured CO2 emissions with green hydrogen to produce e-NG, thereby facilitating the transition to cleaner bunker fuels for “K” LINE’s vessels. Such discussions aim to secure and procure e-NG, a sustainable fuel to meet the “K” LINE’s or its subsidiaries’ bunkering needs in Europe, originating from the TES green energy hub in Wilhelmshaven, Germany.

Moreover, both parties will consider the regulatory landscape surrounding low/non-carbon fuels, carbon intensity, CO2 accounting, certification, and incentive schemes. By such a consideration of supportive regulatory frameworks, “K” LINE and TES aim to bolster the development of e-NG projects, driving forward transition to a more sustainable energy future.

In addition to commercial endeavours, technical collaboration is also on the agenda, encompassing the operation and management of e-NG carriers and Liquified CO2 carriers and the exchange of information relating to CO2 capture and utilisation onboard vessels.

Marco Alverá, CEO and Co-Founder of TES, commented: “The partnership between “K” LINE and TES marks a significant milestone in our collective efforts to drive decarbonisation within the maritime transport sector. By leveraging TES’ expertise in green fuels and “K” LINE’s commitment to decarbonise long-haul shipping, we aim to pioneer cleaner and more efficient maritime operations, setting a precedent for the industry worldwide.”

Satoshi Kanamori, Managing Executive Officer of “K” LINE, commented: “At “K” LINE, we are deeply committed to realizing our vision of a carbon-neutral future for maritime transport. Partnering with TES allows us to combine our strengths and resources to accelerate the adoption of e-NG, laying the groundwork for a more sustainable shipping and logistics industry.”

About TES

TES is a global green energy company leading the way in the production of e-NG (electric natural gas derived from green hydrogen). Headquartered in Europe, TES is committed to making reliable and affordable green energy accessible to all by implementing giga-scale projects using a proven, scalable and cost-effective method. With a presence in North America, Middle East, Asia and Australia, the company’s green hydrogen model uses solar and wind energy in low-cost areas with abundant sunlight or wind. The green hydrogen is then combined with climate-neutral CO2 and transformed into e-NG, a renewable molecule, easy to transport and store using existing infrastructure. Through the supply of e-NG to various industries, TES aims to win the climate race ensuring the mass adoption of green molecules across the globe.

www.tes-h2.com

About “K” LINE

“K” LINE, which was established in 1919, is a logistics company with rooted in the shipping industry. It operates a diverse fleet of more than 400 vessels worldwide. “K” LINE has a long history and diversified track record in the ownership and technical management of liquefied gas carriers, having delivered its first LPG carrier in 1974 and its first LNG carrier in 1983. In addition, “K” LINE is engaged in a number of peripheral businesses, including LNG bunkering in Japan and Singapore, and is also actively involved in expanding its LCO2 transport business. “K” LINE will continue to work towards the realization of low-carbon and carbon-free business operations and society as a whole, with the aim of contributing to the creation of a sustainable society and the enhancement of its corporate value, in accordance with its corporate philosophy of “helping make the lives of people more affluent”.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that the “K” LINE Group Environmental Awards 2024 Ceremony was held on June 7, 2024.

The awards were established to honor and give recognition to outstanding environmental-preservation activities undertaken by both executives and employees working throughout the “K” LINE Group. This year marks the 10th awards ceremony since the establishment of the awards in 2015. We accepted many entries from our group companies both in Japan and overseas. The activities of six companies — one “Grand Award”, four “Excellence Awards” and two “Special Award” — were selected from such standpoints as “originality,” “challenge level,” “degree of contribution,” “continuity” and “potential for pervasiveness”, and they received the awards from our President.

Awardees of the “K” LINE Group Environmental Awards are as follows:

GRAND AWARD

Initiatives for reducing fuel consumption in tugboats. (Daito Corporation)

The tugboats operated by Daito Corporation implemented slow steaming operations to reduce fuel consumption and CO2 emissions. In addition to slow steaming, the tugboat “Kagayaki” further reduced fuel consumption by proper trim adjustment (inclination of the vessel), which led to a reduction in fuel consumption of approximately 5%.

EXCELLENCE AWARD

• Drone delivery

 “K” Line Pte Ltd.

Normally, deliveries of supplies to ships are carried out by service boats, but KLPL switched them to drones, so as to reduce GHG emissions, improve operational efficiency, and enhance safety.

• Hull cleaning of car carriers by robot

“K” Line (Deutschland) GmbH

The effect of the cleaning is not only to reduce GHG emissions, but also to protect

Biodiversity by collecting microplastics.

The collected algae are reused to generate biogas.

• Recycling of packaging materials for imported cargo

“K” Line Logistics, Ltd.

Established a scheme to reuse packaging materials in cooperation with related parties

such as customers and delivery companies.

This will lead to cost saving and reduced resource consumption.

• No Print Week

“K” Line America, Inc.

Promoted reduction of paper consumption during the period by going paperless.

Encouraged participation of all employees through tree planting and other efforts.

SPECIAL AWARD 　*Accumulation 10 entries

Daito Corporation

Nitto Total Logistics Ltd.

The “K” LINE Group will continue to broadly share environmental preservation activities being addressed within our Group companies via the presentation of these annual “K” LINE Group Environmental Awards in order to demonstrate the environmental preservation activities by the entire Group. Through this emphasis on continuing to aggressively contribute to environmental preservation and biodiversity protection, we will successfully accomplish our mission, i.e., “Passing on a sustainable society and this blue and beautiful ocean to the next generation” as expressed in “K” LINE Environmental Vision 2050.

Kawasaki Kisen Group (“K” LINE Group) is pleased to announce that the vessel TEXAS HIGHWAY, managed by “K” Line RoRo Bulk Ship Management Co., Ltd. (“K” Line RoRo Bulk Ship Management), our in-house ship management company,  received the Minister of Land, Infrastructure, Transport and Tourism Award at the Meteorological Memorial Day ceremony on June 3. The award recognizes the vessel’s longstanding contributions to maritime weather observation and reporting, which have greatly advanced the country’s meteorological services.

The Japan Meteorological Agency (JMA) presents the Minister of Land, Infrastructure, Transport and Tourism Award and the Director-General of the Japan Meteorological Agency Award to vessels engaged in maritime weather observation and reporting  every June 1^*1 which is the Meteorological Memorial Day.

The “K” LINE Group will continue to contribute to the development of meteorological services in Japan by providing maritime observation data to the JMA.

*1    Meteorological Memorial Day:

The Tokyo Meteorological Observatory, the JMA’s predecessor, began Japan’s first meteorological and seismological observations on June 1, 1875. To commemorate this event, the Central Meteorological Observatory declared June 1 to be Meteorological Memorial Day in 1942. The annual Meteorological Memorial Day ceremony honors individuals and organizations that have significantly contributed to meteorological services. This year marks 149 years since the Tokyo Meteorological Observatory began its observations.

[TEXAS HIGHWAY receiving the Minister of Land, Infrastructure, Transport and Tourism Award]

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) held an online seminar focusing on women in maritime for around 60 female students in maritime college in conjunction with the International Day for Women in Maritime*¹ on May 18.

The seminar, held on May 20, aimed to provide the opportunity to resolve anxiety and questions for women who are considering becoming seafarers. In addition to explaining life onboard for female seafarers and career paths that consider various milestones in life, the seminar also featured a Q&A session for the students hosted by six female seafarers at “K” LINE and based on their real-life experiences.

Female seafarers at “K” LINE work in various fields and build up their careers as they adapt to work at sea and on land (including international posts), maternity leave, and other aspects of life. On the seas, we welcomed the first female “K” LINE ship captain this month who is taking command of an LNG carrier (LAGENDA SURIA).

“K” LINE supports the philosophy of the International Day for Women in Maritime. We will continue our efforts to maintain and improve a safe and comfortable environment where onshore and offshore personnel with diverse values and different nationality, gender can make full use of their skills.

*1. International Day for Women in Maritime

https://www.imo.org/en/MediaCentre/PressBriefings/pages/A32WomenInMaritimeDay2021.aspx

(Reference) Action Plan to Promote the Active Participation of Women and Support Raising of the Next Generation Children

https://www.kline.co.jp/en/sustainability/social/diversity_inclusion/main/01/teaserItems1/0/linkList/0/link/Action%20Plan%20to%20Promote%20the%20Active%20Participation%20of%20Women%20and%20Support%20Raising%20of%20the%20Next%20Generation%20Children.pdf

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announced today that three “K” LINE Group ship management companies—K Marine Ship Management Pte. Ltd. (KMSM), “K” Line Ship Management (Singapore) Pte. Ltd. (KLSM SGP), and “K” Line LNG Shipping (UK) Ltd. (KLNG UK)—have obtained certification from Nippon Kaiji Kyokai (ClassNK) for the Competency Management System (CMS), a seafarer competency management system being implemented by “K” LINE Group ship management companies. With this system, it will be possible to use it on vessels managed by each company.

The Group’s CMS — which was introduced to facilitate the improvement of seafarer knowledge — not only defines the competency requirements for each seafarer’s position, but also provides specific training and assessment guidelines to achieve those requirements. It includes a variety of training, including onshore training at the “K” Line Maritime Academy training facilities, onboard training programs by auditing and training superintendents*¹ and guidance by senior personnel aboard ship, assessments, and computer-based learning.

The system is operated on the MACK/KONeCT*² digital ship management platforms, custom-designed for KLSM SGP, KLNG UK, and KMSM by SVM Solutions and Technologies Pte. Ltd. (Solverminds). It enables seafarers and onshore staff to seamlessly access their training requirements online, from either aboard ship or ashore, via their platform’s training portal.

Through the use of this system, we clarify the required competencies and aim for the following,

• For career advancement both at sea and on land
• To provide equal opportunities regardless of nationality
• To ensure that the right personnel are assigned to the right positions at the right time.

We aim at a safe and comfortable environment where onshore and offshore personnel with diverse values and different nationality, gender can make full use of their skills.

*1. Auditing and training superintendents

Former “K” LINE Group captains or chief engineers, stationed aboard vessels managed by the Group for a certain period of time to provide on-board training and supervision for other seafarers aboard ship.

*2. MACK/KONeCT

Ship management system platforms. MACK is used by KLSM SGP, and KONeECT is used by KMSM. These platforms have many functions serving as integrated solutions, such as a safety control system and safety and quality control, ship inspection management, scheduled maintenance, procurement and training functions.

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that we have conducted our first trial use of marine B100 biofuel which was supplied by global energy management company World Fuel Services on car carrier “APOLLON HIGHWAY” operated by “K” LINE.

The marine B100 biofuel was delivered to the vessel at the Belgium port of Zeebrugge on March 31, 2024. After leaving Europe Emission Control Area, the vessel started using the B100 biofuel. The trial was completed on April 30th.

Marine biofuel has the potential to become an environmentally friendly alternative fuel, it will be able to reduce CO2 by about 80-90% in the well-to-wake (from fuel generation to consumption) process without changing current engine specifications. We conduct this trial by using marine B100 biofuel composed of 100% biodiesel.*¹

In “K” LINE Environmental Vision 2050 -Blue Seas for the Future-*², we have set the 2030 interim target of improving CO2 emission efficiency by 50% over 2008, surpassing the IMO target of 40% improvement. Furthermore, we set our new target for 2050 as “The Challenge of Achieving Net-Zero GHG Emissions”. As an action plan, we will continue to work on the introduction of new fuels, which have a low environmental impact and take on the challenge of achieving the targets set forth.

*¹ This marine biofuel uses renewable organic resources such as biomass which don’t utilize as foodstuff and feed crop.

*² “K” LINE Environmental Vision 2050 “Blue Seas For the Future”

As an action plan for GHG reduction, we are introducing zero-emission fuels such as ammonia and hydrogen fuels, as well as carbon-neutral fuels such as bio-LNG and synthetic fuels.

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

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 financial results for fiscal 2023. 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 the financial results for fiscal 2023

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

In line with the announcement of the financial results, the beginning of this video explains the financial performance for FY2023 and the forecast for FY2024 as well as the raised earnings targets for FY2026, which is the final year of the mid-term management plan, and the new earnings targets for fiscal year 2030.

Furthermore, as one of the important themes of the mid-term management plan, this video explains “K” LINE’s growth strategy that leverage environmental measures based on its long-term management vision. It presents a coherent story of how “K” LINE plans to evolve towards the raised earnings targets for FY2026 and the new earnings targets for FY2030, as disclosed in its latest financial report.

The video details “K” LINE’s efforts to gain a competitive advantage by strategically responding to environmental needs relating to vessel operation as a part of promoting low-carbon/zero carbon emissions for our company. Along with promoting low-carbon/zero carbon emissions for society, it highlights that the demand for the transport of transition energy is expected to grow. Accordingly, new business opportunities will arise to meet this demand and to supporting energy mix conversion.

We will strengthen our partnerships with customers who can share growth opportunities with us by promoting low-carbon/zero-carbon emissions for our company and society. “K” LINE intend to promote business management with an awareness of capital costs, the company as a whole, achieve sustainable growth, and enhance our corporate value.

“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

Kawasaki Kisen Kaisha, Ltd. (“K” LINE), announced today that, together with ITOCHU Corporation(“ITOCHU”), Nihon Shipyard Co., Ltd., MAN Energy Solutions (MAN), Mitsui E&S Co., Ltd., and NS United Kaiun Kaisha, Ltd. have signed a memorandum of understanding (MOU) regarding joint development efforts for the commercialization of ammonia-fueled ships.

Ammonia is advancing as a key zero-emission marine fuel solution and if it becomes possible to commonly use ammonia as a marine fuel, this will greatly contribute to the reduction of greenhouse gas (GHG) emissions. The development and commercialization of ammonia dual fueled engines using ammonia as their primary fuel (ammonia-fueled engines) is essential for widespread use of ammonia-fueled ships. In particular, the ensuring of safety in the handling of toxic ammonia and the confirming of stable operations at sea are important milestones on the road to the social implementation. This MOU is based on the premise that 200,000 deadweight ton class bulk carriers to be built by Nihon Shipyard will be equipped with ammonia-fueled engines being developed by MAN as a pilot project prior to commercialization, and that the necessary operational data will be collected after the delivery of the ships for the commercialization of ammonia-fueled engines and ammonia-fueled ships in cooperation with other parties involved.

The signing of this MOU is an important milestone for the implementation of ammonia-fueled ships, a new challenge being taken on by the maritime industry, and also an important step in the ongoing implementation of the Integrated Project being facilitated by ITOCHU.

ITOCHU and its partners will proceed with the development of the ammonia-fueled engines and ships based on this MOU, aiming to begin social implementation once the engines and ships are ready in accordance with the integrated project for the development and social implementation of ammonia fueled ships selected by the New Energy and Industrial Technology Development Organization (NEDO) in October 2021 to be a part of its publicly solicited Green Innovation Fund Project/Development Project for Next-Generation Ships/Development of Ammonia Fueled Ships*

As a logistics company rooted in the shipping industry, the “K” LINE Group will continue to work to reduce its environmental impact to aim for sustainable growth and greater corporate value based on its corporate principle of “we help make the lives of people more affluent.”

* October 26, 2021: Joint project on “Development of Ammonia-fueled ship” adopted as Green Innovation Fund

https://www.kline.co.jp/en/news/Liquefied_gas/Liquefied_gas-20211026.html

Key Roles

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) registered as an “TNFD Early Adopter” *¹ on March 28, 2024.

The Taskforce on Nature-related Financial Disclosures (TNFD) is an international initiative that establishes a framework for the appropriate assessment and disclosure of risks and opportunities for natural capital and biodiversity. By registering as a “TNFD Early Adopter”, “K” LINE aims to disclose information in line with TNFD recommendations during fiscal year 2024 or 2025.

Our business is dependent on natural capital, mainly from the ocean, and we consider our efforts to address not only climate change issues but also biodiversity conservation, especially in the ocean, to be one of the most important themes in our business activities. Last year, in conjunction with our participation in the TNFD Forum*², as part of our information disclosure based on the TNFD Framework*³, we conducted a comprehensive assessment of risks and opportunities by introducing the LEAP approach*⁴ proposed by the TNFD, to evaluate environmental risks and nature-related impacts of our business and consider appropriate responses as part of our information disclosure under the TNFD framework.

As a TNFD Early Adopter, “K” LINE will enhance information disclosure based on a comprehensive understanding of climate change and natural capital and aim to achieve sustainable growth and increase corporate value as a trusted partner to all stakeholders.

*1. TNFD Early Adopters are companies and organizations that have registered on the TNFD website their intention to disclose information in accordance with the TNFD recommendations and are required to do so for either FY2024 or FY2025.

https://tnfd.global/engage/tnfd-adopters/

*2. The TNFD Forum consists of companies, financial institutions, and research organizations that have joined to support the discussions at TNFD and assist in the establishment of the framework.

November13, 2023: Participation in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum.

https://www.kline.co.jp/en/news/csr/csr-20231113.html

*3. October 17, 2023: Disclosure of information based on the TNFD Framework

https://www.kline.co.jp/en/news/csr/csr-20231017-2.html

*4. It is an integrated evaluation process for managing nature-related risks and opportunities advocated by the TNFD for information disclosure, consisting of four phases: Locate (interface with nature), Evaluate (dependencies and impacts on nature), Assess (significant nature-related risks and opportunities), and Prepare (for responses and reporting).

Please refer to the following website page of “K” LINE for details on LEAP analysis.

https://www.kline.co.jp/en/sustainability/environment/impact_mitigation/main/0119/teaserItems1/05/linkList/0/link/20231011TNFD%20report3_eng.pdf