The Group, which promotes ESG management, created the Green Business Group in April 2019 with the aim of creating new value for the next generation under the theme of renewable energy.
We are strengthening various initiatives, including next-generation fuels such as hydrogen and ammonia, the offshore wind power generation business, the LNG fuel supply business, CO2 transportation, and carbon credits.
In April 2022, NYK launched its new "NYK GREEN EARTH" brand to consolidate its efforts to generate new value for low-carbon and decarbonization through green business. Through activities aimed at the realization of a decarbonized society, we aim to build a new energy value chain while ensuring the sustainable development and growth of the company and society.
New "NYK GREEN EARTH" brand
In April 2022, NYK launched its new "NYK GREEN EARTH" brand to consolidate its efforts to generate new value for low-carbon and decarbonization through green business.
To intelligibly convey NYK's wish of realizing a beautiful earth through the company's efforts at sea, the logo simply combines "GREEN," which emphasizes awareness of the environment, with "EARTH." The image to the left incorporates the color green and is composed of a motif of the earth and the sea.
Target businesses: offshore wind power-related business, development of next-generation fuels, participation in the supply chains for ammonia and hydrogen, LNG bunkering, transportation and storage of CO2, carbon credits, marine energy related business, support for startups, etc.
LNG fuel supply initiatives
The NYK Group has positioned the decarbonization of shipping as an urgent issue and has been the world's first company to put LNG-fueled ships to practical use in an effort to shift to zero-emission fuels.
Please refer to the related link for details of our LNG fuel initiatives.
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Heavy fuel oil is currently the primary marine fuel used. However, its usage results in environmental destruction, including climate change. LNG (liquefied natural gas), however, is a next-generation fuel that can significantly reduce CO2 (carbon dioxide), NOx (nitrogen oxides) and SOx (sulphur oxides) emissions. We have positioned marine LNG as a bridging solution* to the practical use of zero-emission fuels, and we are developing our LNG fuel supply business to be a front-runner in the industry.
As a shipping company, we can contribute not only on the LNG-fuel-demand side but also on the supply side. We are expanding our business globally in key locations and building an LNG-fuel value chain.
- *NYK is positioning LNG fuel as a bridge solution until marine fuels that have a lower environmental impact, such as hydrogen and ammonia, can be utilized to realize future zero-emission vessels.
The world's first LNG bunkering vessel
In 2017, we took delivery of the world's first LNG bunkering vessel, Green Zeebrugge, as a preparatory step to deal with environmental issues. We have been involved in an LNG bunkering business in Northern Europe based in the port of Zeebrugge (Belgium), and we are contributing to the development of the value chain for next-generation fuel vessels by deploying them in the fleet of our subsidiary UECC. In the future, we will also supply zero-emission fuels to help achieve a decarbonized society.
Japan's first LNG bunkering vessel
In September 2020, we took delivery of Japan's first LNG bunkering vessel, Kaguya, operated by Central LNG Marine Fuel Japan Corporation (CLMF), which was jointly established by Kawasaki Kisen Kaisha Ltd. ("K" Line), JERA Co. Inc., Toyota Tsusho Corporation, and Nippon Yusen Kabushiki Kaisha (NYK Line), and has started a ship-to-ship LNG-fuel-supply business in Japan's Chubu region.
As the first LNG fuel supply vessel to operate in Japan, Kaguya will make efforts to provide a stable supply of LNG fuel to the market.
Discussions on ship-to-ship LNG bunkering in western Japan
We have signed a memorandum of understanding with Kyushu Electric Power Company Incorporated, Itochu Enex Co. Ltd., and Saibu Gas Co. Ltd. for joint discussions on the commercialization of a new business to supply LNG as a marine fuel to ships in the Setouchi and Kyushu areas of western Japan.
The parties will examine the commercialization of an LNG bunkering business in these areas of western Japan, including marketing activities to consumers such as Kyushu Electric Power Company Incorporated for its LNG-fueled coal carriers, which are scheduled to be delivered in fiscal 2023, as well as the construction and owning of LNG vessels required for ship-to-ship supply.
Initiatives to develop next-generation fuels
The NYK group is working to promote the use of next-generation fuels such as hydrogen and ammonia to achieve Japan's goal of reducing greenhouse gas emissions to virtually zero by 2050.
Demonstration Project Begins for Commercialization of Vessels Equipped with Domestically Produced Ammonia-Fueled Engine
Japan's New Energy and Industrial Technology Development Organization (NEDO) has approved NYK Line's participation in a demonstration project for the commercialization of vessels equipped with a domestically produced ammonia-fueled engine as part of the Green Innovation Fund project.*
The demonstration project aims to use ammonia as fuel to significantly reduce greenhouse gas (GHG) emissions during voyages and thus introduce an ammonia-fueled vessel for the good of society earlier than 2030.
NYK will eventually work toward the goal of achieving zero emissions from ships in the future.
- *Green Innovation Fund project
A 2 trillion yen fund created in NEDO to significantly accelerate current efforts such as structural transformation of the energy and industrial sector and innovation through bold investment toward carbon neutrality by 2050. The fund provides continuous support from R&D and demonstration to social implementation for up to 10 years for companies that share ambitious and concrete goals with the public and private sectors and tackle them as management issues. NEDO provides support mainly in 14 priority areas for which action plans are being formulated in the green growth strategy.
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Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD)
In order to realize a hydrogen society as early as possible, we have been participating in the Advanced Hydrogen Energy Chain Association for Technology Development (AHEAD) since 2017.
In 2020, AHEAD was selected by the NEDO grant program and completed the world's first demonstration of an international hydrogen supply chain using MCH (methylcyclohexane).
From 2021, AHEAD will supply MCH produced in Brunei to ENEOS Corporation's demonstration project in Japan.
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Challenging new fields requires a combination of "technological capabilities" and "collaborative creation," and collaborative creation is the driving force behind innovation. We are participating in the below networks in order to create further collaborative creation.
We will continue our efforts to decarbonize not only the shipping industry but also society as a whole through collaborative creation with world-class partners.
Examples of collaborative creation with partners
- Clean Fuel Ammonia Association
- Hydrogen Council
- The Maersk Mc-Kinney Moller Center for Zero Carbon Shipping
- Getting to Zero Coalition
- Hydrogen Value Chain Development Council
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The offshore wind market initiatives
The offshore wind market in Japan is expected to expand rapidly. In addition to the technological capabilities and knowledge of Japanese regulations and legal systems that we have cultivated over many years through our shipping business, the NYK Group is taking full advantage of the knowledge that we have gained through our offshore business and the nationwide group companies that we have established throughout Japan to become actively involved in the entire offshore wind value chain.
Jack-up vessel (Self-Elevating Platform Vessel)
In cooperation with Van Oord Offshore Wind BV in the Netherlands, NYK is making efforts to own and operate a jack-up vessel in Japan for use in the installation of offshore wind turbines and foundations, while meeting Japanese local requirements such as vessel-flag restrictions.
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CTV (Crew Transfer Vessel)
In cooperation with Northern Offshore Group AB (NOG) in Sweden, NYK is making efforts to own and operate crew transfer vessels (CTVs) for the offshore wind business in Japan, with the aim of building a domestic CTV based on NOG's original vessel design. In addition, NYK will establish a nationwide CTV service network for the future development of the offshore wind business in Japan. As part of the collaboration with NOG, NYK purchased a new CTV named "Energizer" in 2022. The CTV is currently being operated in Europe by NOG subsidiary Northern Offshore Services AS, with which NYK is currently promoting personnel exchanges.
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Geotechnical surveys for offshore wind sites
In cooperation with OYO Corporation and Netherlands-based Fugro, NYK is making efforts to provide comprehensive geotechnical services for offshore wind farms in Japan.
This partnership combines the strengths of NYK with those of OYO, which is Japan's largest geotechnical survey company, and Fugro, which has a proven track record in geotechnical surveys for offshore wind farms around the world.
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Maritime consulting services
Japan Marine Science Inc. (JMS), an NYK Group company, provides comprehensive maritime consulting services. For the offshore wind business, JMS offers site environment assessments, feasibility-study support for wind-turbine scale and specifications, use of a maritime simulator to examine vessel safety during and after the installation of wind turbines, diving inspections during wind turbine operation, training via simulator for workboat crews, and marine monitoring systems.
Transportation business for offshore wind business
Having a history of more than 100 years, NYK Bulk & Projects Carriers Ltd. (NBP) is Japan's leading ocean carrier of project and heavy-lift cargo.
NBP has a track record in overseas offshore wind projects for the transport of nacelles (generators) via a heavy lifter and jackets (foundations) by Deck Carriers.
From September 2021, heavy lifters with 800mt lifting capacity have been added to the NBP fleet, and the company will actively participate in offshore wind projects in Japan.
To achieve decarbonization not only of shipping but also of society as a whole, we are actively involved in renewable energy projects across the entire energy value chain. Here we would like to introduce some of the specific projects we are involved in.
Startup Accelerator Program to Promote Decarbonization: Startupbootcamp
In June 2021, we started a startup accelerator program in collaboration with Mitsubishi Corporation to find and support startups that have ideas and technologies for the realization of a low-carbon and carbon-free society.
Teaming up with Startupbootcamp Australia, we evaluated the applicants from all over the world under the theme of decarbonization and completed one cycle of the acceleration program with 10 selected startups for their business development.
Through such a program, we seek to discover promising startups and contribute to the realization of a sustainable society while also considering future collaboration with them.
Investment in Tsubame BHB
In June 2021, NYK made the decision to invest in Tsubame BHB Co. Ltd., a venture company originating at Tokyo Institute of Technology.
Tsubame BHB is working on the practical application of an on-site ammonia synthesis system invented by Professor Emeritus Hideo Hosono that uses a special catalyst technology to produce a required amount of ammonia at a required location.
With this investment, NYK will support the commercialization of Tsubame BHB's innovative technology and contribute to the reduction of environmental impact.
Investing in Australian carbon credit sales company
We have invested in Australian Integrated Carbon (AIC), an Australian company that sells carbon credits obtained through primeval forest restoration projects, through Japan Integrated Carbon (JIC), a holding company established jointly with Mitsubishi Corporation.
Through this investment, we seek to gain ESG management expertise through the acquisition of experience and know-how in the carbon credit creation business to support net zero GHG emissions from ships all over the world.
Joining forces with bp to help decarbonize hard-to-abate sectors
We have signed a memorandum of understanding with bp, a major global marine fuel and lubricants supplier, to collaborate on future fuels and transportation solutions to help industrial sectors, including shipping, decarbonize. The companies will collaborate and identify opportunities to help transition from current marine fuels to alternatives such as LNG, biofuels, and methanol, and to develop future fuels such as ammonia and hydrogen. We will also consider potential marine transportation and other solutions to reduce CO2, and explore participation in the supply chains for ammonia and hydrogen to be used in heavy industry and power generation to help those sectors to decarbonize.
Developing large LCO2 carrier jointly with Mitsubishi Shipbuilding Corp.
Together with Mitsubishi Shipbuilding Corporation, we have begun development of technology for transporting CO2 by large vessels, which are expected to be in growing demand globally in a carbon-neutral society. Through this joint development project, we will contribute to the development of various technologies, such as liquefied CO2 carriers (LCO2 carriers), which are necessary for the establishment of the CCUS value chain, which we will participate in.
Participation in liquefied CO2 transportation and storage business
We established a joint venture company, Knutsen NYK Carbon Carriers AS (KNCC), with the Knutsen Group of Norway in December 2021, aiming for the commercial development of a liquefied CO2 marine transportation and storage business worldwide using the Knutsen developed technology PCO2®, which allows transport of liquified CO2 at ambient temperatures. This company will also build and operate low/mid pressure vessels based on other technologies. The establishment of this joint venture will be an important foothold for participation in the CCUS value chain.
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