On November 21, NYK and JERA Co., Inc. signed a Memorandum of Understanding (MoU) to study the transportation of fuel ammonia. The study will include examining the transportation of combustible ammonia to Hekinan Thermal Power Plant, where JERA aims to start using combustible ammonia in commercial operations in the late 2020s, according to the company’s statement.
In order to procure combustible ammonia in large volumes for power generation at lower cost, it is necessary to increase the size of ships for transportation. The MoU calls for the two companies to jointly study the development of expanded fuel ammonia carriers and the establishment of a safe transportation system. Specifically, the MoU stipulates that the following will be considered:
Development of ammonia fuel carriers suitable for domestic thermal power plants and reception terminals
Installation of a fuel ammonia transport and reception system
Implementation and operation of ammonia propulsion systems for ships
Work with related parties to formulate rules for receiving combustible ammonia
Since 2021, NYK has set a long-term goal of reducing net GHG emissions by 2050 for its shipping business, and the company is working to establish a value chain for ammonia fuel , which does not emit carbon dioxide (CO2) when burned. By establishing a new value chain ahead of the rest of the world, the standardization of carriers and the formation of rules such as laws and regulations are indispensable to realize the large-scale transportation of combustible ammonia.
For aircraft carrier standardization, NYK will use its internal resources, including its project engineering team, to research and develop the most appropriate hull design from the concept phase.
With respect to the formation of rules such as laws and regulations, NYK will promote a related party approach based on knowledge gained through the development and social implementation of Ammonia Fueled Ammonia Gas Carriers (AFAGC) and ammonia-fueled tugs. Both the development of the AFAGC and the ammonia-powered tug have been selected as recipients of the New Energy and Industrial Technology Development Organization (NEDO) Green Innovation Fund* project.
On February 3, 2021, NYK released the “NYK Group ESG Story”, which aims to further integrate ESG into the company’s management strategy and promote activities that contribute to the achievement of the SDGs through Commercial activities. On March 24, 2022, NYK published the “NYK Group ESG Story 2022” update, which outlines initiatives for integrating ESG into the Group’s management strategies presented in the “NYK Group ESG Story” and provides a partial explanation of the Group’s sustainable growth strategy. in a long-term perspective.
In addition, NYK launched its new brand “NYK GREEN EARTH” to highlight NYK’s ESG efforts to create new value initiatives for low carbon and decarbonization through green businesses such as fuel development. new generation, including ammonia and hydrogen. The NYK Group will encourage the creation of new value as a provider of sustainable solutions in order to strongly promote ESG management.
A 2 trillion yen fund established in NEDO to dramatically accelerate current efforts such as structural transformation of the energy and industrial sector and innovation through bold investments towards carbon neutrality by 2050. The fund provides support continuous from R&D and demonstration to social implementation for up to 10 years. years for companies that share ambitious and concrete objectives with the public and private sectors and approach them as management issues. NEDO provides support in 14 priority areas for which action plans are being developed in the green growth strategy.