NYK Line
Japan Engine Corporation
IHI Power Systems Co., Ltd.
Nihon Shipyard Co., Ltd.
September 7, 2022

Ammonia-Fueled Ammonia Gas Carrier Obtained AiP fromClassification Society ClassNK-- Moving closer to zero-emission vessels with risk assessment for world’s first
approval of an alternative design --On September 7, NYK Line, Japan Engine Corporation, IHI Power Systems Co.,
Ltd., and Nihon Shipyard Co., Ltd. (the “Consortium”) received approval inprinciple (AiP) from ClassNK for an ammonia-fueled ammonia gas carrier(AFAGC).
At present, there are no international regulations for the use of ammonia asmarine fuel. Therefore, the Consortium have been conducting research anddevelopment to ensure that the AFAGC has the same safety features as vessels
using existing fuel oil or LNG (liquefied natural gas) fuel.
The Consortium conducted a HAZID* risk assessment of the safety of using
ammonia as marine fuel in anticipation of obtaining approval of an alternative
design,** which is indispensable for realizing a demonstration operation in fiscal
2026. The Consortium then received an AiP from Japanese class society
ClassNK after concluding that safety can be ensured. This is the first time that arisk assessment has been conducted and an AiP obtained not only for a concept
but also an alternative design.
Background of AFAGC development
Since ammonia does not emit carbon dioxide (CO2) when combusted, it isexpected to be a next-generation fuel that contributes to the global warmingmeasures and is expected to be in demand for mass transportation in the future.
In addition, by transporting ammonia as cargo and using it as fuel during voyages,
it will be possible to significantly reduce greenhouse gas (GHG) emissions during
voyages.
This initiative is the development of vessels equipped with a domestically
produced ammonia-fueled engine, which was initiated in October 2021 by NYK,Japan Engine Corporation, IHI Power Systems Co., Ltd., and Nihon Shipyard Co.,
Ltd. as part of the Green Innovation Fund Project*** of the New Energy andIndustrial Technology Development Organization (NEDO).
With the goal of early social implementation of next-generation fuel vessels, theConsortium are developing (a) a two-stroke ammonia-fueled engine for vessel
propulsion, (b) a four-stroke ammonia-fueled engine for onboard power supply,and (c) a safe and environmentally friendly hull. The Consortium is working
together to study the feasibility of construction and commercial operation of the
prototype vessel in an integrated manner.
Basic design of prototype vessel completed and AiP obtained
The main design issues when using ammonia as a fuel during development are
as follows.
1. It is necessary to combust ammonia stably and operate the engine while
increasing mixed combustion rate of ammonia, which is hardly-flammable andhas low energy density.
2. Since the combustion of ammonia generates nitrous oxide (N2O: about 300
times the warming potential of CO2) instead of CO2, it is necessary to control thecombustion to suppress the generation of nitrous oxide.
3. A design to prevent leakage of toxic ammonia and adequate safety measuresin the event of leakage are needed. Safety measures based on risk assessments
are necessary to ensure the same level of safety as conventional vessels.
The Consortium have established the development hull design for this project tobe an MGC (medium gas carrier, ammonia loading capacity: approx. 38,000
cubic meters or more), which is currently common size for marine transportationof ammonia, and have developed and selected main and auxiliary engines andonboard equipment while securing an ammonia-loading capacity equivalent ormore than that of conventional vessels. The Consortium have completed theconcept design of a prototype vessel that can cope with the above issues throughthe safe and practical installation of ammonia-fuel-related equipment in thelimited space available in the vessel. The equipment layout has been devised,
and the Consortium will work on further design optimization.

Image of AFAGC

Hand-over ceremony (Gastech2022, Milan, Italy)
From left, Tetsuya Yamamoto, Executive Officer, Japan Engine Corporation: Yoshinori Maeta, President, Nihon ShipyardCo., Ltd.: Akira Kono, Senior Managing Executive Officer, NYK Line: Hayato Suga, Executive Vice President, ClassNK:
Yasuo Kino, Managing Director, Niigata Powers Systems (Europe) B.V.
※Face masks were removed immediately prior to the photo.

* HAZID: Hazard Identification Study
HAZID is a safety assessment method that evaluates the impact of newstructures and systems on human life, property safety, and the environment byidentifying items based on potential risks, assuming various scenarios.
** Approval of an alternative design
This refers to the process of obtaining approval from the competent authorities
for the design of a vessel for which no international regulations have yet been
established by proving that the design is equivalent to the safety requirements ofthe existing international regulations. The use of ammonia as marine fuel inammonia carriers currently deviates from the provisions of the SOLAS(International Convention for the Safety of Life at Sea). On the other hand, if thedesign is equivalent to the safety requirements of the relevant chapters of theIGC Code (International Code of the Construction and Equipment of Ships
Carrying Liquefied Gases in Bulk) based on the SOLAS, it is possible to design
a vessel to use ammonia as a marine fuel. Now that the four companies haveobtained the AiP for the AFAGC, the parties will work on a more detailed design
and aim to obtain approval of an alternative design before the vessel'sconstruction begins.
*** Green Innovation Fund projectA 2 trillion yen fund created in NEDO to significantly accelerate current efforts
such as structural transformation of the energy and industrial sector andinnovation through bold investment toward carbon neutrality by 2050. The fundprovides continuous support from R&D and demonstration to social
implementation for up to 10 years for companies that share ambitious andconcrete goals with the public and private sectors and tackle them as
management issues. NEDO provides support mainly in 14 priority areas for which
action plans are being formulated in the green growth strategy.

Related press release
October 26, 2021, "Demonstration Project Begins for Commercialization ofVessels Equipped with Domestically Produced Ammonia-Fueled Engine”
https://www.nyk.com/english/news/2021/20211026_03.html
Overview of each company＜NYK Line＞
Headquarters: Tokyo
President: Hitoshi Nagasawa
Website: https://www.nyk.com/english/＜Japan Engine Corporation＞

Headquarters: Hyogo
President: Ken Kawashima
Website: https://www.j-eng.co.jp/en/index.html＜IHI Power Systems Co., Ltd.＞

Headquarters: Tokyo
President: Masao Akamatsu
Website: https://www.ihi.co.jp/ips/english/index.html＜Nihon Shipyard Co., Ltd.＞
Headquarters: Tokyo
President: Yoshinori Maeta
Website: https://www.nsyc.co.jp/en/

Inquiry contact details
NYK Line
Corporate Communication Group, Media Relations Team
Telephone: +81-3-3284-5177; email: NYKJP.ML.MEDIA@nykgroup.com
Japan Engine Corporation, General Affairs & Public Relations Section
Telephone: +81-78-949-0800; email: pr_info@j-eng.co.jp
IHI Power Systems Co., Ltd., Administration DivisionTelephone: +81-3-4366-1203; email: ips-webmaster1@ihi-g.com
Nihon Shipyard Co., Ltd., Human Resources & General Affairs Group,Administration Department
Telephone: +81-45-212-8205; email: info@nsyc.co.jp