NYK Places Order for World’s Largest LNG-Fueled PCTC

Maritime Activity Reports, Inc.

September 24, 2019

During the keel laying ceremony, second from left; Takaya Soga, managing corporate officer of NYK (Photo: NYK Group)

During the keel laying ceremony, second from left; Takaya Soga, managing corporate officer of NYK (Photo: NYK Group)

NYK has placed an order for the world largest pure car and truck carrier (PCTC) capable of navigating oceans with only LNG as the main fuel. 

A keel laying ceremony was held on September 20 at Shin Kurushima Toyohashi Shipbuilding Co. Ltd., and NYK managing corporate officer Takaya Soga and other related parties were in attendance. The ship is scheduled to be delivered in 2020 and will be the first large LNG-fueled PCTC to be built in Japan.

To minimize a reduction in vehicle loading capacity caused by the installation of LNG fuel tanks, in addition to optimizing major items such as ship width, several designs for maximizing the cargo loading space will be implemented, and the new vessel will be able to transport approximately 7,000 units (standard vehicle equivalent) per voyage.

With the support by Japan’s Ministry of Environment and Ministry of Land, Infrastructure, Transport and Tourism for its model project to reduce CO2 emissions by using alternative fuel, the vessel will be installed with the technology to reduce further CO2 emissions and the experimental verification in its actual voyage will be scheduled. The ship will be about 40% more energy efficient (reducing CO2 emissions per unit of transport), far exceeding the International Maritime Organization (IMO) EEDI phase 3 requirements* that will become effective in 2025. The vessel is additionally expected to reduce sulfur oxide (SOx) emissions by approximately 99% and nitrogen oxides (NOx) by approximately 86% compared to conventional heavy oil–fired engines.

Air pollution by ship exhaust gas has become an important challenge, and environmental regulations surrounding the shipping industry are being strengthened year by year as environmental awareness increases. LNG fuel can be expected to significantly reduce emissions of air pollutants and greenhouse gases compared to C heavy oil, which is a common marine fuel, and thus meet the SOx Global Cap regulations set by the IMO, scheduled to become effective in January 2020.**

From an early stage, the NYK Group has been steadily moving toward using LNG as a propulsion fuel. In fact, in 2016 the group built the world's first LNG-fueled car carrier. That ship entered into service in 2017, and just last year the company began issuing green bonds*** to finance LNG-fueled ships and LNG bunkering vessels, among other green financing projects.

NYK will continue to actively work to reduce its environmental burden and realize a sustainable society, as designated in the company’s medium-term management plan “Staying Ahead 2022 with Digitalization and Green.”

Vessel Particulars
Length overall about 199.95 meters
Breadth about 38.0 meters
Total car capacity 7,000 units
Gross tonnage 73,500 tons
Flag Japan

* EEDI requirements
Regulations on the energy efficiency of ships based on the 2013 revision of the International Convention on the Prevention of Ship Pollution 1997 Protocol (Appendix VI to the MARPOL Convention). EEDI (Energy Efficiency Design Index) is the number of grams of carbon dioxide (CO2) required to carry 1 ton of cargo for 1 mile, and the reduction rate from the baseline (baseline) will be gradually enhanced. Car carriers are required to implement reductions of 5% by 2015 (Phase 1), 15% by 2020 (Phase 2), and 30% by 2025 (Phase 3).

** SOx Global Cap regulations
SOx emission regulations based on the 2008 amendment of the 1997 Protocol on Ship Pollution Prevention (Annex VI of the MARPOL Convention). From January 1, 2020, the allowable limit of sulfur in ship fuel oil will be reduced from 3.5% to 0.5%.

*** Green bonds
Corporate bonds in which the proceeds are used solely for the purpose of funding environment-friendly projects.

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