Seven Japanese companies have agreed to develop an integrated ammonia fuel supply chain in the Chubu region and build and operate four ammonia-fuelled car carriers, in a project aimed at reducing greenhouse gas emissions from international shipping.

The initiative brings together Imabari Shipbuilding, Kawasaki Kisen Kaisha (“K” LINE), Kyokuyo Shipyard, JERA, Shin Kurushima Dockyard, Nippon Yusen Kabushiki Kaisha (NYK) and Nihon Shipyard.

The companies aim to establish what they describe as the world’s first commercial ammonia fuel supply chain integrating fuel procurement, port infrastructure and vessel operations, with the Chubu region serving as its hub.

The project will cover the procurement of green ammonia, development of ship-loading facilities at the Hekinan terminal, construction of a dedicated ammonia bunkering vessel and ship-to-ship (STS) fuel transfers to ammonia-powered car carriers.

Ammonia produces no carbon dioxide (CO₂) during combustion, although its overall environmental benefits depend on how it is manufactured. Green ammonia is produced using renewable energy, while lower-carbon ammonia is manufactured through processes that reduce associated emissions.

JERA will procure green ammonia, with potential supplies from regions including India, and develop ship-loading facilities at its ammonia receiving terminal adjacent to the Hekinan Thermal Power Station. The infrastructure will support a stable fuel supply for the bunkering vessel.

JERA is also advancing lower-carbon ammonia use in power generation as part of its efforts to achieve net-zero CO₂ emissions from its domestic and overseas businesses by 2050.

Kyokuyo Shipyard will build the dedicated ammonia bunkering vessel, which is scheduled for completion in 2030. NYK or a wholly owned subsidiary will own and operate the vessel.

“K” LINE and NYK will establish an equally owned joint venture to manage fuel sales and supply. Using the bunkering vessel, the venture will transfer ammonia to the car carriers through STS bunkering.

The companies said their combined experience in handling ammonia and liquefied natural gas (LNG) would support the development of a safe and efficient fuel supply system. The bunkering vessel will incorporate specialised systems to prevent leaks and address ammonia’s toxicity and corrosiveness.

The project will also involve the construction of four ammonia-fuelled car carriers, with “K” LINE and NYK each introducing two vessels. Scheduled for completion in 2030, the ships are expected to transport finished vehicles for customers including Toyota Motor Corporation.

The vessels will be Japan’s first ammonia-fuelled car carriers and will feature dual-fuel engines capable of operating on ammonia, alongside tanks designed to support trans-Pacific voyages using ammonia alone.

Safety systems will include measures to prevent and detect leaks and neutralise ammonia in the event of a release.

Shin Kurushima Dockyard will lead the vessels’ basic design, with Shin Kurushima Dockyard, Imabari Shipbuilding and NSY jointly responsible for detailed design and construction.

The companies said the initiative would support the decarbonisation of international shipping, strengthen Japan’s shipbuilding capabilities and help develop a broader market for low-carbon ammonia across transport and other industrial sectors. -OGN/TradeArabia News Service