Joint Agreement Reached for GHG Zero-Emission Ship

30 April 2020

Imabari Shipbuilding Co., Ltd. ("Imabari"), MAN Energy Solutions (hereinafter “MAN”), Mitsui E&S Machinery Co., Ltd. ("Mitsui E&S Machinery"), ClassNK ("ClassNK"), ITOCHU ENEX Co. Ltd. ("ITOCHU ENEX") and ITOCHU Corporation ("ITOCHU") have agreed to jointly develop ships equipped with a main engine using ammonia as its main fuel (“Ammonia-fueled Engine”).

With international momentum towards the transition to a decarbonized society on the increase since the Paris Agreement came into effect in 2016, the International Maritime Organization (IMO) adopted a strategy for the reduction of greenhouse gas (GHG) emissions within the shipping industry in 2018.

This strategy set targets to reduce CO2 emissions per transport work – as an average across international shipping – by at least 40% by 2030 (compared to 2008 levels), by 50% by 2050, and to phase them out entirely (zero-emissions) during this century. In order to achieve these goals, the early development of zero-emission ships is anticipated with ammonia a prime candidate for a suitable zero-emission, alternative fuel.

The purpose of the joint agreement is not limited to the development of ships equipped with an Ammonia-fueled Engine, but also extends to the question of owning and operating the ships, supplying ammonia fuel and developing ammonia supply facilities. The consortium intends to promote initiatives to reduce GHGs with the cooperation of domestic and overseas companies, as well as the relevant government agencies.

Individual roles
As such, each member of the consortium will concentrate on its own, respective area of expertise during the zero-emissions vessel project as follows:

(MES) Mitsui Engineering & Shipbuilding Co. Ltd. press release