3rd International Conference on Fuel Ammonia

Utilization of clean ammonia fuel to achieve
Zero Emissions in the shipping industry
海運産業のゼロエミッション化に向けたクリーンアンモニア燃料の活用について

September 29 2023
Tsutomu Yokoyama
NYK Line
Executive Officer©NYK Group. All rights reserved.

Regulations and Trends in the Shipping Industry◼ At IMO MEPC*80 (3rd-7th July) , the 2023 IMO Strategy on Reduction of GHG Emissions
from Ships has been adopted. *Marine Environment Protection Committee

New target for GHG reduction in international shipping (compared to 2008)
By 2030:
At least 20%
Striving for 30%
By 2040:
By or close to 2050:

At least 70%
Striving for 80%
Reach Net-zero GHG emissions◼ Oct 2021, the Ministry of Land, Infrastructure and Transport ofJapan has announced to achieve Net-Zero emissions by 2050 forinternational shipping.
◼ Sep 2021, NYK has announced Target of Net-Zero Emissions
by 2050 for international shipping.
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Options of alternative fuels◼ Every option has pros & cons
◼ In shipping, Ammonia/Methanol draw stronger attention◼ Need to assess scalability in production, economics, visibility in carbon footprint◼ NYK pursues all possible options with more stress on ammonia which is regarded as oneof the most realistic from availability & energy density viewpoints◼ Continuous use of LNG as a bridge + expand LNG bunkering business
Clean
Hydrogenderivatives

Hydrogen
H2

Production

MassProduction
Timeline

NG reform
Electrolysis

2030○Volume(NH3=100)

164△Boiling
Point(℃)

Pilot Fuel-253

NeededLow energy density
Large storage facility required
Ultra-cryogenic & possibly high boil-offToxicity
Safety measures→what we are tackling in the Ammonia-fueledShips Development ProjectAmmonia
NH3

H2/N2synthesis

2030○100○-33

NeededMethanol
CH3OH

H2/CO/CO2synthesis

2040-△88○65

Needede-methane
CH4

H2/CO2synthesis

2040-

△66

○-162

Needed

3rd International Conference on Fuel Ammonia-NYKChallenges

limited availability of “clean“CO2
DAC still costly
Possible competition between
SAF/Methanol/Methane for CO/CO2©NYK Group. All rights reserved.

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Ammonia as alternative fuel◼ As of NYK’s Medium-Term Management Plan, NYK is focusing on introducing ammonia
as a marine fuel to achieve Net-Zero by 2050.

1. No CO2 emission
2. Scalable
3. High liquefaction temperature
4. Extensive cargo handling experience
5. Potential as hydrogen carrier
6. High momentum for coal mixed combustion

Strength of Ammonia

Challenge of introducing Ammonia

1. Toxicity
2. Initial price spike
3. No rules for using as marine fuel4. Flame resistance

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The area shipping company can contribute

Biz Scope: Entire Supply Chain of Ammonia
Production

Transport & Use

CO2-freehydrogen

Liquefiedammonia

HNH3Ammonia-fueledammonia gas carrier

Coal mixed combustion generation⇒Mono-fuel combustion gas turbine

Ammonia floating storage andregasification barge

O2

Ocean Transportation

Storage andregasification

Coastal transportation

Production

Transport & Use• Ocean and coastal transport • Bunkering• Floating Storage• Participation in upstream production projectsof clean fuels

Tsubame BHB

AFAGC

A-FSRB

AFT

ARLFV

ABV

Efficiency
improvement ofammonia production

Ammonia-fueled
Ammonia Gas Carrier

Ammonia Floating
Storage
Regasification Barge

Ammonia-fueled
TugboatAmmonia-Bunkering
VesselSubsidized

Ammonia-fuel
Ready
LNG-Fueled VesselStorage

Demand Creation

Demand Creation

Supply Creation

Production

Subsidized
Transportation &Demand Creation

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Subsidizedby JapaneseGovernment©NYK Group. All rights reserved.

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Ammonia-fueled Ships: Tugboat & Deep sea◼ Ammonia-fueled ships under development by NYK-led
consortium

AF-AGC Project Scheme
Shipping

Shipbuilding

ClassEngine◼ With financial support from Japanese Government – Green
Innovation Fund
◼ Tugboat as an entry project & extend the lessons learned todeep sea ships AFAGC

(M/E)
(Gen)

◼ Intensive risk assessment carried out in full consideration oftoxicity nature of NH3

Green Innovation Fund

◼ Contribution to the rule making process in IMO※the above scheme is only for AFAGC

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Ammonia-fueled Ships: Tugboat & Deep sea
Project Cost
PeriodTotal: JPY12.3 billion / Subsidy: JPY 8.4 billion (maximum)
FY2021～2027

Ammonia Fueled Tugboat（2024 delivery）

AFAGC – Ammonia Fueled Ammonia
Gas Carrier (2026 delivery)• Target co-firing rate over 80%• Modification of LNG powered tug• AiP obtained in July 2022

• Target co-firing rate :60 to 95%(M/E)• Target co-firing rate :80%(G/E)• AiP obtained in Sept 2022

May 2023
IHI Power System commenced
NH3 combustion test in theprototype 4-stroke NH3 engine

May 2023
J-Engine commenced NH3 combustion
test in the test rig of the 2-stroke engine

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Safety study efforts for ammonia-fueled vessels◼ NYK, as a shipping company, contributing to the design of safe ammonia-fueled vessels having
discussion with consortium partners (shipyards, manufacturers, and ship classification).
Safety constraints

Prevention of injury and fatality

Prevention of environmental
damageHolding seaworthiness​*

Example of countermeasures
1.Space isolation
2.Remote monitoring
3.Continuous ventilation
4.Continuous leak detection
5.Detoxifier
6.Double pipes​

H A Z ID (A - Tug)A pri l 2022

H A Z ID (A F -AGC)Jul y 2022

1.Detoxifier​1.Arrangement of safety valves
2.Auto shut down, Auto change over*a vessel is in a good enough condition to travel safely on the sea
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