January 5, 2023

NYK Line
Nihon Shipyard Co., Ltd.
IHI CorporationParties Obtain World's First AiP for Ammonia Floating Storage and Regasification
Barge-- Contributing to the early introduction of fuel ammonia –NYK Line, Nihon Shipyard Co., Ltd. (NSY), and IHI Corporation (IHI) (hereinafter “the parties”) received
an Approval in Principle (AiP) on December 26, 2022 from ClassNK for an ammonia floating storage
and regasification barge (A-FSRB).

Background of A-FSRB development

Since ammonia does not emit carbon dioxide (CO2) when combusted, it is expected to be a nextgeneration fuel that contributes to global warming countermeasures. In Japan, technologicaldevelopment is underway for fuel ammonia mixed combustion power generation at coal-fired power
plants as an innovative next-generation thermal power generation technology that contributes to thereduction of CO2 emissions. On the other hand, when using ammonia in existing thermal power
plants, there are issues such as the problem of securing land for new onshore facilities including
storage tanks and regasification facilities, and the large initial investment cost.

An A-FSRB is an offshore floating facility that can receive and store ammonia that has beentransported via ship as a liquid, warm and regasify ammonia according to demand, and then send it
to a pipeline onshore. An A-FSRB offers the advantages of shorter construction time and lower costs
in comparison to construction of onshore storage tanks and regasification plants. In fact, the A-FSRB
is expected to speed up the adoption of fuel ammonia and contribute to its wider use as a lowerenvironmental-impact next-generation fuel.

Risk Identification

At this time, there are no international regulations for floating storage and regasification facilities
when the cargo is ammonia, and it is expected that the unique requirements of ammonia will haveto be reflected in the design. Therefore, the parties and ClassNK conducted a comprehensive risk
identification of various contingencies and worked to identify technical issues from the initial study
stage. A risk identification was conducted using the gap analysis method, which identifies differences
between conventional ships and offshore floating facilities (heavy oil, LNG, etc.) and evaluates theimpact of such differences.

As a result, the parties extracted items for future technical studies of possible accidental incidents
and differences between conventional ships and offshore floating facilities and obtained an AiP fromClassNK. This is the world's first acquisition of an AiP for an A-FSRB handling ammonia as cargo.

The parties will continue to study the arrangement and introduction of A-FSRBs with electric powercompanies, which are expected to be the main users of A-FSRBs, and to study legal compliance.
Additionally, the parties will work on economic evaluation in parallel.

Image of A-FSRB

Tasks of parties in joint R&D
NYK Line・Project management
・Decision of base design・Consideration of legal compliance・Economic evaluation

NSY・Hull design / Equipment layout study
・Examination of utility equipment

IHI

・Discharging of ammonia / Creation of vaporization process
・Providing equipment information required for the vaporization process
・Providing information on necessary utility equipment

AiP certificate* Barge
A barge is a flat-bottomed vessel designed to carry heavy cargo mainly in inland waterways and ports.
Almost all barges cannot navigate by themselves because they are not equipped with an engine; theymust be towed or propelled by a tugboat.

Overview of each company＜NYK Line＞
Headquarters: Tokyo, Japan
President: Hitoshi Nagasawa
Website: https://www.nyk.com/english/＜Nihon Shipyard Co., Ltd.＞Headquarters: Tokyo, Japan
President: Yoshinori Maeta
Website: https://www.nsyc.co.jp/en/＜IHI Corporation＞
Headquarters: Tokyo, Japan
President & CEO: Hiroshi Ide
Website: https://www.ihi.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

Nihon Shipyard Co., Ltd., Human Resources & General Affairs Group, Administration Department
Telephone: +81-45-212-8205; email: info@nsyc.co.jp

IHI Corporation, Media Relations & Investor Relations Group,Corporate Communication Division, Mr. Kobayashi
Telephone: +81-3-6204-7030; email: kobayashi4642@ihi-g.com