Japanese shipowners Mitsui OSK Lines, NYK Line and K Line are all pushing forward separate projects to put ammonia-fuelled ships into operation within this decade.
On Tuesday groups involving NYK Line and K Line announced that Japan's New Energy and Industrial Technology Development Organisation (NEDO) had approved funding for their ammonia-fuelled shipping projects under its newly formed JPY 32bn ($280m) Green Innovation Fund.
Japan has declared that it will reduce its greenhouse gas emissions to zero by 2050 and started the Green Innovation Fund to propel the drive toward carbon neutrality.
International competition
NYK Line, Japan Engine Corp, IHI Power Systems and Nihon Shipyard Co are working together in a demonstration project which would see vessels equipped with a domestically-produced ammonia engine.
These will comprise the development and operation of an ammonia-fuelled tugboat for delivery in 2024 which would use an ammonia fuel mix.
A second element will be an ammonia-fuelled ammonia carrier which would use vapourised cargo as fuel. The aim is to deliver this vessel in 2026.
NYK would be responsible for the ship design and operation of both vessels.
Japan Engine Corp said work is scheduled to start in December, when ClassNK would also join the project.
It added that the top goals are to "realise the development of an ammonia-fuelled vessel that is internationally competitive ahead of other countries" and to lead the development of related safety guidelines, laws and regulations.
Supply issue
Also today K Line, working in partnership with trading house Itochu Corp, United Kaiun Kaisha, Nihon Shipyard Co and Mitsui E&S Machinery Co, also said it had been selected by NEDO to benefit from the Green Innovation Fund
K Line would be involved in the ownership, operation and chartering of the planned ammonia-fuelled vessels which would be put into operation by 2028.
The company said this will allow Japan's maritime industry to maintain its "long-term advantage in the field of zero-emission ships".
In June K Line said it was joining 22 companies, including big names like Trafigura, Anglo American, Fortescue Metals Group, Genco Shipping & Trading, DNV and Equinor, in a joint study on the ammonia as a marine fuel.
This is looking at the safety of ammonia as a fuel, in bunkering, its fuel specification and emissions in production.
Separately MOL is also pursuing ammonia-fuelling. In October the shipowner announced it had signed a letter of intent with MAN Energy Solutions for the purchase of an ammonia-fuelled engine.
Company officials told TradeWinds the company to deliver its first net zero emission vessel with ammonia fuelled engine in mid-2020's and that this is expected to be an ammonia carrier.
But they said MOL, which has committed to deploying 110 zero emission ocean-going ships by 2035, is also interested in looking outside transportation at ammonia fuel supply and is already working on a joint development study with partners in Singapore on this.
Companies are zoning in on ammonia as it does not emit CO2 when burned. But there are toxicity, handling and infrastructure issues associated with its use and the need to scale up green production of the fuel.
