NYK Decides to Order Four LNG-Fueled Capesize Bulk Carriers
To Be Delivered from FY2024
Jan. 18, 2022
NYK has decided to order four new LNG-fueled capesize bulk carriers - two from Nihon Shipyard Co., Ltd. (NSY) and one each from Namura Shipbuilding Co., Ltd. (Namura) and Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS), the latter of which is a subsidiary of China State Shipbuilding Corporation Limited (CSSC).
The vessels are scheduled to be delivered sequentially from fiscal 2024 to fiscal 2025.
These ship orders are part of a capesize bulk carrier fleet development aimed at achieving net-zero greenhouse gas (GHG) emissions in the NYK Group's oceangoing businesses by 2050.
The four ships will emit approximately no sulfur oxides (SOx), 85% less NOx, and 40% less carbon dioxide (CO2) compared to existing conventional heavy oil-fueled vessels. Additionally, the vessels will be compliant with the IMO's NOx (nitrogen oxide) emission regulations (Tier III).*
NYK is positioning LNG fuel as a bridge solution until future zero emission ships can be realized and has already decided to build the world's first LNG-fueled large coal carrier in 2019 and its first LNG-fueled capesize bulk carrier in 2021.
Going forward, we will continuously and gradually proceed our planned introduction of LNG-fueled vessels until the realization of zero-emission vessels that use marine fuels such as hydrogen and ammonia, which have an even lower environmental impact.
Image of LNG-fueled capesize bulk carrier, Courtesy of NSY
Image of LNG-fueled capesize bulk carrier, Courtesy of Namura
Image of LNG-fueled capesize bulk carrier, Courtesy of SWS
On February 3, 2021, NYK released the NYK Group ESG Story, which aims to further integrate ESG into the company's management strategy and promotes activities that contribute to the achievement of the SDGs (Sustainable Development Goals) through business activities. To strongly promote ESG management, the NYK Group will actively promote the replacement of its bulker fleet to next-generation eco-friendly ships and encourage new value creation as a sustainable solution provider.
NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details: https://www.nyk.com/english/news/2021/esg-story_01.html
* NOx emission regulations (Tier III)
The IMO-adopted MARPOL Convention is the main international convention covering the prevention of the pollution of the marine environment by shipping. In line with MARPOL Annex VI (Regulations for the Prevention of Air Pollution from Ships) that came into effect on May 19, 2005, NOx emission controls (tier I controls) for diesel engines installed on vessels were implemented in Japan. Later the convention was revised, and a new NOx emission level (tier II controls) came into force on July 1, 2010. The revised regulation is a very strict one that aims to decrease NOx emission levels by a further 20 percent from that of the first regulation. Moreover, a third control was adopted in 2008, targeting vessels to be constructed from 2016 and limited to emission control areas, to seek the reduction of NOx emissions by about 80 percent from that of the first tier.
Overview of each company
Nihon Shipyard Co., Ltd.
Head office: Tokyo, Japan
President: Yoshinori Maeta
Namura Shipbuilding Co., Ltd.
Head office: Osaka, Japan
President: Kensuke Namura
Shanghai Waigaoqiao Shipbuilding Co., Ltd.
Head office: Shanghai, China
NYK Group, press release