K Line and NYK Order Four Ammonia-Fueled Car Carriers for 2030 Delivery

Seven Japanese companies, including Kawasaki Kisen Kaisha (K Line) and NYK, agreed on October 27 to build four ammonia-fueled car carriers, with delivery expected in 2030, and to develop an ammonia fuel supply chain centered on the Chubu region. K Line and NYK will each own and operate two vessels, which are expected to carry finished vehicles for customers such as Toyota.

Shin Kurushima Dockyard will handle the basic design of the vessels, while Imabari Shipbuilding and Nihon Shipyard will take part in the joint design and construction. The vessels will be fitted with dual-fuel engines capable of running on ammonia and tanks large enough to complete a transpacific voyage using ammonia alone. To address the toxicity and corrosiveness of ammonia, the vessels will be equipped with leak prevention, detection and neutralization systems.

Power company JERA will develop loading facilities at its receiving terminal alongside the Hekinan thermal power station in Aichi Prefecture, from which the fuel will be supplied. Kyokuyo Shipyard will build a dedicated ammonia bunkering vessel, also for delivery in 2030, which will be owned and operated by NYK or a wholly owned subsidiary. NYK and K Line will set up a 50-50 joint venture to sell and supply ammonia through ship-to-ship operations, mainly at the ports of Nagoya and Mikawa, with transfers carried out alongside berths or at anchorage.

Also on October 27, JERA signed a binding heads of agreement with AM Green Ammonia to receive around 70,000 tonnes per year of green ammonia for five years, with a possible extension. The supply will come from AM Green's plant in Kakinada, Andhra Pradesh, India, which is expected to begin operations between 2028 and 2029 using renewable electricity backed by pumped-storage hydropower. JERA said the volume is mainly intended for the NYK and K Line fuel joint venture, although it clarified that this was not identified as the total annual fuel requirement for the four vessels, and no pricing was disclosed.

According to the project partners, the combination of the ammonia supply chain, the bunkering vessel and the new vehicle carriers will form the world's first integrated commercial supply chain of its kind, aimed at driving the decarbonization of international shipping. However, the announcement did not disclose the total project investment, full details of the shipbuilding contracts, or quantified lifecycle emissions savings from the fuel, which limits the ability to assess the environmental and cost performance of the proposed service.