WHILE the focus on ammonia as a replacement marine fuel has been on bulk trades in Australia, specifically from the Pilbara, seven Japanese companies have established a joint venture to focus on ammonia for PCTCs.
Imabari Shipbuilding, "K" Line, Kyokuyo Shipyard, JERA, Shin Kurushima Dockyard, NYK and Nihon Shipyard yesterday [27 October] jointly announced an agreement to develop an ammonia fuel supply chain in Japan’s Chubu region and to build and operate four ammonia-fuelled car carriers supported by the supply chain.
The partners say the project will be a comprehensive initiative to develop an integrated ammonia fuel supply chain, from the procurement of green ammonia and development of ship loading facilities to the construction of a dedicated bunkering vessel with fuel supply through ship-to-ship (STS) bunkering and the operation of four ammonia-fuelled car carriers.
"To address the need to reduce greenhouse gas (GHG) emissions from international shipping as well as customers’ Scope 3 emissions, the seven companies aim to establish a stable ammonia fuel supply system through the integrated development of the supply chain," the statement read.
"This project will be the world’s first commercial supply chain, with the Chubu region serving as the hub, integrating fuel procurement, supply infrastructure at the Hekinan terminal and vessel operations.
"Ammonia is a next-generation fuel that emits no carbon dioxide (CO₂) when combusted and can be stored and transported in liquid form. In particular, steady progress is being made toward the practical use of low-carbon ammonia, which is produced with reduced CO₂ emissions during the manufacturing process, in the power generation sector. In the future, its use is also expected to expand into the transport sector, including maritime applications and other industries."
"Through this initiative, the companies will promote the decarbonization of international shipping through a Japanese industry collaboration while also supporting the broader utilisation of ammonia for industrial and other applications. In doing so, they aim to contribute to the realization of a sustainable society and the development of a low-carbon ammonia market."
JERA will be responsible for fuel procurement and development of ship loading facilities while the building of the ammonia bunkering vessel and fuel supply and sales structure will come under "K" Line, Kyokuyo Shipyard and NYK.
Kyokuyo Shipyard will build the ammonia bunkering vessel, which will be owned and operated by NYK or a subsidiary. It is scheduled for completion in 2030, the same as the ammonia-fuelled car carriers, which will be built by Imabari, Shin Kurushima and Nihon Shipyard. Drawing on the world’s most extensive track record in building car carriers, Shin Kurushima will lead the basic design phase with the vessels then jointly designed and built by all three.
Two ships each will be operated by "K" Line and NYK and will be Japan’s first ammonia dual-fuel PCTCs. They are expected to work for Toyota and other finished vehicle manufacturers, the partners say.
By combining the stringent safety standards and operational expertise the two companies have accumulated in handling ammonia and LNG, they aim to establish a safe, highly efficient fuel supply system. To ensure the safe use of ammonia, which is toxic and corrosive, the vessels will also incorporate a multi-layered safety concept, including measures to prevent and detect leaks and to neutralise ammonia in the event of a leak.
"By bringing together their advanced technological and shipbuilding capabilities, the three companies aim to realize next-generation vessels that combine high safety in open-sea operations with world-leading environmental performance, thereby demonstrating the competitiveness of Japan’s shipbuilding technologies on the global stage," the jv members say.