Japan consortium to build 4 ammonia-fuelled car carriers by 2030

The companies will integrate fuel procurement, vessel construction, and ship-to-ship supply.

Seven Japanese companies will build and operate four ammonia-fuelled car carriers by 2030 as part of a project to establish a commercial ammonia bunkering supply chain in Japan’s Chubu region.

The project involves Imabari Shipbuilding, K LINE, Kyokuyo Shipyard, JERA, Shin Kurushima Dockyard, NYK, and NSY.

The initiative will integrate green ammonia procurement, fuel-loading facilities at JERA’s Hekinan receiving terminal, a dedicated ammonia bunkering vessel, and ship-to-ship (STS) fuel transfers.

The companies said the project would establish the world’s first commercial supply chain integrating these activities, with Chubu as its hub.

It aims to reduce greenhouse gas emissions from international shipping and customers’ Scope 3 emissions, whilst supporting the wider adoption of low-carbon ammonia in industry.

K LINE and NYK will each introduce two ammonia-fuelled car carriers, scheduled for completion in 2030. The vessels are expected to transport finished vehicles for customers including Toyota Motor Corporation.

The carriers will have dual-fuel engines capable of running on ammonia and fuel tanks designed to support trans-Pacific voyages using ammonia alone.

They will also incorporate systems to prevent and detect leaks and neutralise ammonia in the event of a leak, addressing the fuel’s toxicity and corrosiveness.

JERA will procure green ammonia produced using renewable energy, with supplies intended to come from regions including India.

It will also develop ship-loading facilities at the ammonia receiving terminal adjacent to the Hekinan Thermal Power Station to support fuel transfers to the bunkering vessel.

Kyokuyo Shipyard will build the dedicated ammonia bunkering vessel, which is also 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 handle ammonia fuel sales and supply.

Using the bunkering vessel, the venture will supply ammonia to the car carriers through STS bunkering, primarily at the ports of Nagoya and Mikawa.

Shin Kurushima Dockyard will lead the car carriers’ basic design, with Imabari Shipbuilding and NSY joining the design and construction work.