Mitsui OSK Lines (MOL) is teaming up with Namura Shipbuilding and Mitsubishi Shipbuilding to develop a large ammonia carrier.
The size of the design was not disclosed, but it will be powered by ammonia as MOL looks to reduce greenhouse gas emissions from its fleet.
"Currently, ammonia is used mainly as a raw material for fertiliser, but its maritime transport volume is limited," MOL said.
"However, it is expected to be in a great demand in the future as a next-generation clean energy source that emits zero CO2 during combustion, mainly for use in mixed combustion at coal thermal power plants and for use as a hydrogen carrier."
MOL forecasts that annual demand for ammonia in Japan will reach 3m tonnes by 2030 and 30m tonnes by 2050.
"Ammonia has great promise as a vessel fuel," the company said.
The shipowner aims to deploy net-zero emission deep-sea vessels this decade and achieve net-zero GHG emissions by 2050.
MOL will establish a collaborative framework with Namura and Mitsubishi Shipbuilding to order the ship’s main engine, which is being developed by MAN Energy Solutions (MAN ES).
Mitsubishi said it will take charge of the optimal design of cargo tank and deck tanks used for ammonia fuel.
It will also organise engine and related machinery systems including the fuel supply system, and development and design of cargo handling equipment, special equipment for ammonia transportation and safety equipment on board.
Last month, MOL inked a memorandum of understanding with MAN ES and Mitsui E&S Machinery to buy of an ammonia-fuelled main engine.
Japan's major shipowners are all pushing forward separate projects to put ammonia-fuelled ships into operation within this decade.
NYK Line and K Line recently announced that Japan's New Energy and Industrial Technology Development Organisation had approved funding for their ammonia-fuelled shipping projects under its newly formed JPY 32bn ($280m) Green Innovation Fund.
