Imabari Shipbuilding is poised to target the gas-powered ship market after winning an order for three LNG-fuelled newcastlemax bulker carriers.
The newcastlemax orders, including one each for compatriots K Line, Mitsui OSK Lines and NYK Line, are to be constructed under Nihon Shipyard (NSY), Imabari’s recently formed joint venture company with Japan Marine United (JMU).
The move to clean energy is being seen as part of a technology drive by Japanese shipyards to win back market share from close rivals South Korea and China.
At a Tokyo press conference, Imabari president Yukito Higaki revealed that NSY is targeting the growing market for LNG-fuelled vessels as part of the shipping industry’s decarbonisation drive.
He said that Imabari is planning to invest in developing its own LNG tank construction so it can fully control the production process.
Local sources believe this would involve Type-C LNG fuel tanks and may lead to the acquisition of a specialist technology company.
Higaki also revealed he is readying further gas and alternative-fuel ship designs.
He said over the last six months since NSY was formed, Imabari has been busy developing a new line up of ships for the joint venture company.
Commenting on Imabari’s future investment plans, Higaki said: “I would like to continue to promote the development of LNG-fuelled car carriers and LNG-fuelled bulk carriers and ammonia-fuelled ships.”
Imabari delivered an LNG-fuelled car carrier in March this year. In June, NYK Line announced that NSY will build six out of a series of 12 LNG-fuelled pure car carriers it has ordered in Japan.
More orders for newcastlemax bulkers are also likely from local steel mills such as JFE Steel, which backed the triple newcastlemax order with long-term charter contracts.
Pressure on profits
However, Higaki admitted that an increase in steel and other material costs are putting pressure on profits. He said that he is hoping to secure more appropriate prices in future newbuilding deals.
In a separate development related to LNG-fuelled ships in Japan, the New Energy and Industrial Technology Development Organization (NEDO) is offering up to ¥35bn ($320m) in funding for the development of marine decarbonisation technology.
The shipping project is part of NEDO’s ¥2trn Green Innovation Fund established to promote decarbonisation in Japan by 2050.
NEDO is opening a tender for companies to bid for funding to develop hydrogen and ammonia-fuelled two-stroke and four-stroke marine engines.
It is also offering funding to develop technology that will dramatically reduce methane slip from two-stroke and four-stroke LNG marine engines.
