© 2021. NYK Group. All rights reserved.© 2021. NYK Group. All rights reserved.
Expectations from a shipowner on using ammonia as marine fuel for zero-emission ships
February 9th, 2021
Toshi Nakamura
Senior General Manager
Green Business Group
NYK Line
Symposium on alternative low-carbon and zero-carbon fuels
© 2021. NYK Group. All rights reserved. 2
Agenda
1 Company introduction
2 GHG reduction strategy in the shipping industry
3 Projects of ammonia fuel
4 Challenges to realize ammonia fueled vessel
IMO Symposium (Feb 9th 2021)
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CHAPTER
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Company Introduction
1
3
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NYK Group Fleet and Facility
container ships58
capesize bulkers114
panamax bulkers92
car carriers111
tankers56
LNG carriers 78multi-purpose carriers41shuttle tankers28
others1cruise ships 1
FSOs 2drillship1
Vessel Air Freighter
aircrafts8flights5,227 in 2020
784
*For the year ended March 31, 2020
Terminal
ports21Operating at
in 2020
Logistics Center
locations609m23.1million
*As of March 31, 2020
vessels
FPSOs 3
Energy Division
IMO Symposium (Feb 9th 2021)
155 handysize bulkers
wood chip carriers43
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“Staying Ahead 2022 with Digitalization and Green”
5
NYK’s Medium-term Strategy
Promoting “Green Business” to Drive Future Growth and Create New Value as a Shipping Company
Offshore wind power LNG bunkering
World’s first LNG bunkering vessel Japan’s first LNG bunkering vessel
World’s first LNG-fueled car carrier
IMO Symposium (Feb 9th 2021)
Hydrogen/Ammonia
© 2021. NYK Group. All rights reserved.
CHAPTER
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GHG Reduction Strategy in the Shipping Industry
2
6
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2.1 billion tons
0.46 billion-ton
H2+NH3
Roadmap for Zero Emission of International Shipping by MLIT ①
IMO Symposium (Feb 9th 2021)
Introduction of H2 and NH3 is a key to CO2 reduction.
(March 2020)
Japanese maritime industry worked together withMinistry of Land, Infrastructure, Transport and Tourism
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Roadmap for Zero Emission of International Shipping by MLIT ②
Expected scenario of hydrogen and ammonia introduced toward 2050
H2NH3 45%
Start from 2028Energ
y c
onsu
mption T
Wh
Petroleum fuel
LNG
IMO Symposium (Feb 9th 2021)
(March 2020)
Japanese maritime industry worked together withMinistry of Land, Infrastructure, Transport and Tourism
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Roadmap of Ammonia Supply Chain by CFAA
9
Clean Fuel Ammonia Association in Oct 2020
Large-scale demand
for power
generation
Marine Engines
IMO Symposium (Feb 9th 2021)
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Due to engine output size, ammonia combustion is expected to be suitable for ocean going vessels
Gro
ss T
on
nag
e
Main Engine Output
House Boat
Batterry
Small Boat
Cargo Ship 199t
Cargo Ship 499t
Tag Boat
RORO/Passenger
Electric Hydrogen fueled
Inland waters
Sightseeing 150t
Ocean Going vessels
Container
Ammonia fueled
NYK predicts that liquefied hydrogen fuel combustion engines (H2 gas turbines, etc.) will be put into practical use and spread after 2040.
Hydrogen(fuel cell)
Ammonia(combustion)
NYK’s forecast for hydrogen and ammonia in 2030s
IMO Symposium (Feb 9th 2021)
Cargo Carriers
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CHAPTER
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Projects of Ammonia Fuel
3
11
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Joint R&D for Use of CO2-free Ammonia as Fuel
12
Project Partner Image
A-Tug(Ammonia-fueled Tug)
AFAGC(Ammonia-fueledAmmonia Gas Carrier)
A-FSRB(Ammonia Floating Storage Regasification Barge)
IHI Power Systems
NYK started three joint R&D projects from Aug 2020 for use of CO2-free ammonia as an alternative fuel for vessels.
IMO Symposium (Feb 9th 2021)
© 2021. NYK Group. All rights reserved.
(image)
Joint R&D>Ammonia fueled tugboat
13
NYK(Shipowner)
ShipyardBuilding
Joint R&DOperation
Joint R&D project to put the ammonia fueled tugboat into practical use
NYK Group(Operator)
Ammonia fueled tugboatLNG fueled tugboat “Sakigake”built in 2015
SOx Reduction 100%、NOx Reduction approximately 80%CO2 Reduction approximately 30% (※Compared to heavy oil)
IHI Power Systems
IMO Symposium (Feb 9th 2021)
© 2021. NYK Group. All rights reserved.
Joint R&D>Use of Ammonia in Marine Transportation
Production Storage MarineTransportation
Storage &delivery
Bunkering to vessels Marine Fuel
Supply Chain of CO2-Free ammonia
CCS
PowerGeneration
AFAGC
A-FSRB
Stable supply chain of ammonia fuel
Ammonia-Fueled Ammonia Gas Carrier
Ammonia Floating Storage and Regasification Barge
AFAGC: Contribute to the early realization of zero emissions for oceangoing vesselsA-FSBR: Contribute to the early introduction of ammonia fuel as an alternative to land facilities
14IMO Symposium (Feb 9th 2021)
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CHAPTER
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Challenges to realize ammonia fueled vessel
4
15
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Challenges of ammonia fueled vessel
16
Pilot fuels NOx Generator
Fuel costFuel
storageFuel Supply
chainSafety
Technical Challenges
Commercial Challenges
To use ammonia as marine fuel, both technical and commercial challenges need to be overcome.
Marine fuelPower generation fuel
(2020s~) (2028~)
Working with various partners including other sectors is necessary to solve the challenges.
IMO Symposium (Feb 9th 2021)
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LFV vs LBV ”Chicken & Egg” Situation finished
Reference: DNV-GLIMO Symposium (Feb 9th 2021)
It takes a long time to finish “chicken & egg” situation when introducing a new type of marine fuel. 〈Example: LNG as marine fuel〉
3
Delivered LNG Bunkering Vessel 1
5
2
4
MV Green Zeebrugge(LNG Bunkering Vessel)
MV Sakigake(LNG Fuel Tug )
MV Auto Eco/Energy(LNG Fuel PCTC)
MV Kaguya(LNG Bunkering Vessel)NYK Related Vessel
【LNG Fueled Vessels (LFV) (excluding LNG carriers) & LNG Bunkering Vessels (LBV)】
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Chart of safety standards for ammonia fuel
18
How can we establish safety requirements for toxic and corrosive ammonia fuel?
Amend IMO regulation
Set guidelines based onsafety verification
IGC code
IGF code
Toxic fuel not allowed
Ammonia fuel not covered
Yes
No
Liquified gas carrier?(e.g. liquified ammonia carrier?)
To build an ammonia fueled vessel
IMO Symposium (Feb 9th 2021)
Different types of ship need different actions.
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International Safety Standard(IMO Regulations)
19
IGC Code The International Code of the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk
• This standard is for the safe carriage by sea in bulk of liquefied gases to minimize the risk to the ship, to its crew and to the environment.
• Liquified gas carriers are not allowed to use toxic fuels. (including ammonia fuel)
IGF Code The International Code of Safety for Ship Using Gasses or Other Low-flashpoint Fuels• This standard is for the safe use of gas fuels.• The current standard mainly covers LNG fuel. (not including
ammonia)
There is already a new movement to optimize these standards for the use of next-generation marine fuels.
IMO Symposium (Feb 9th 2021)
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Contribution to GHG Reduction in International Shipping
20IMO Symposium (Feb 9th 2021)
Other countries where ships call
Multi-country approval based on alternative design
Contribution to the realization of GHG reduction targetsthrough technical development of the Japan Maritime Cluster
© 2021. NYK Group. All rights reserved.© 2021. NYK Group. All rights reserved.
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