December 27, 2023

Nihon Shipyard Co., Ltd.
Mitsubishi Shipbuilding Co., Ltd.

Memorandum of Understanding (MOU) is Signed on Collaborative Study for Ocean-Going Liquified CO2Carriers toward the Realization of Large-Scale International Transportation from 2028 onwards-Working with Mitsui & Co., Ltd. and Mitsubishi Corporation for standardization of ship specification and design to realize largescale international transportation from 2028 onwards-Utilizing the technologies and construction know-how of Mitsubishi Shipbuilding and Nihon Shipyard, work to establish theconstruction and production infrastructures of LCO2 carriers, and examine consistency with onshore facilities

Conceptual image of the ocean-going Liquified CO2 (LCO2) carrier
Nihon Shipyard Co., Ltd., a Tokyo-based joint venture for ship design and sales between Imabari Shipbuilding Co., Ltd. andJapan Marine United Corporation and Mitsubishi Shipbuilding, a part of Mitsubishi Heavy Industries (MHI) Group have signed
an MOU with Mitsui & Co., Ltd. and Mitsubishi Corporation on the collaborative study for ocean-going liquified CO2 (LCO2)
carriers to realize large-scale international transportation in Japan initiated CCS (Carbon dioxide Capture and Storage) from2028 onwards. The four companies will proceed with this initiative aiming to apply it at the future commencement of CCS
business led by the Japanese government.
Japan Organization for Metals and Energy Security (JOGMEC) launched a feasibility study on Japanese Advanced CCS
Project, as a public offered project in FY2023. Demand for LCO2 carriers is expected to increase in the near future to transport
captured CO2 from Japan to storage areas in various CCS projects. It is very important to standardize the specification anddesign of LCO2 carriers across each project as well as to establish a realistic production supply chain so that LCO2 carriers will
be constructed and supplied stably in Japan and CCS value chain will be achieved with improved economic efficiency. The1

signed MOU suggests that four companies have agreed to make a collaboration to solve these issues related to theconstruction of LCO2 carriers and marine transportation, starting with Japan initiated CCS projects to the Asia-Pacific region.
Nihon Shipyard and Mitsubishi Shipbuilding have already begun joint study to build LCO2 carriers, demands for which are
expected to increase in the near future, by making the most of their strengths while mutually complementing each other.
Mitsui & Co., Ltd. and Mitsubishi Corporation, who are now advancing business development for early launch of the CCS
business, are selected as leading companies in the Japanese Advanced CCS Project by JOGMEC aiming for overseas CO2storage.
Nihon Shipyard is actively working on commercialization of LNG and ammonia fueled ships as preparation of upcoming
strengthening of GHG emission regulations. As the next initiative, the company is contributing to realize a sustainable carbon
neutral society by delivering LCO2 carriers essential for establishment of CCS value chain.
MHI Group is pursuing strategic measures to strengthen its business for the energy transition. Mitsubishi Shipbuilding, for its
role in this initiative, efforts to contribute the advance of the maritime industry in Japan and around the world by utilizing its
shipbuilding-based marine engineering technologies in addition to conventional shipbuilding. Mitsubishi Shipbuilding will actively
promote the development of LCO2 carriers and establishment of CCS value chain through collaboration with various
domestic/overseas companies, and also construction of demonstration ship for transport of LCO2 for New Energy andIndustrial Technology Development Organization (NEDO).

Collaborative Study Framework

Image movie of LCO2 carrier
https://youtu.be/EEht1oGg5fU