• Press Release

NYK to Build Company’s First LNG-Fueled Capesize Bulk Carrier

NYK has concluded a long-term consecutive voyage charter (CVC) contract with JFE Steel Corporation for a new large bulk carrier that uses LNG (liquefied natural gas) as its main fuel. This vessel will be the first LNG-fueled capesize bulk carrier to be built by NYK. The ship will be delivered in early 2024 and will be used in the Pacific trade of iron ore and coal for JFE.

This vessel will be equipped with a state-of-the-art WinGD-made dual-fuel slow-speed diesel engine (i.e., X-DF diesel engine 2.0)* and compliant with IMO’s NOx (nitrogen oxide) emission regulations (Tier III).**
This ship will emit approximately no sulfur oxides (SOx), 85% less NOx, and 25-30% less carbon dioxide (CO2) compared to conventional heavy oil-fueled vessels. In addition, due to careful consideration of the equipment and arrangement of the LNG fuel tank and LNG fuel supply system, this ship will maintain the loadable quantity and cargo hold capacity of conventional bulk carriers of the same size despite the increased weight of additional equipment.

NYK will prepare the LNG bunkering system by the time the vessel is delivered, anticipating that LNG fuel will be replenished by ship-to-ship bunkering*** when calling ports in the Chugoku region of Japan.

NYK aims to further advance to zero-emission vessels utilizing marine fuels that have a lower environmental impact, such as hydrogen and ammonia. For the moment, NYK is positioning LNG fuel as a bridge solution until future zero emission ships can be realized.

Image of LNG-fueled capesize bulk carrier

Outline of vessel

Length overall: approx. 299.9 meters
Breadth (moulded): approx. 50.00 meters
Draft (scantling): 18.4 meters
Deadweight Tonnage: approx. 210,000 tons
Contractor: Nihon Shipyard Co., Ltd.

On February 3, 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 can be found in the following press release.

* X-DF diesel engine 2.0
The X-DF engine 2.0 improves methane slip by 50% and improves fuel efficiency, which can reduce CO2 emissions by about 3% compared to the conventional X-DF diesel engine. Methane slip refers to unburned methane gas that is exhausted into the atmosphere.

** 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.

*** Ship-to-ship bunkering
A method of bunkering where an LNG bunkering vessel comes alongside an LNG-fueled vessel to supply LNG. This can be done at various locations, such as along the quay or pier or at anchor.

Overview of each company

JFE Steel Corporation
Head office: Tokyo, Japan
President & CEO: Yoshihisa Kitano
Website: https://www.jfe-steel.co.jp/en/index.html

Nihon Shipyard Co., Ltd.
Head office: Tokyo, Japan
President: Yoshinori Maeta
Website: https://www.nsyc.co.jp/en/


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