Japanese shipping line Nippon Yusen Kaisha (NYK) has doubled down on plans to deploy LNG as a fuel in its fleet, announcing its second LNG-fuelled pure car and truck carrier (PCTC).
The vessel will be fabricated by Shin Kurushima Dockyard in Mikawa Bay on Osaka. Delivery is scheduled for 2022.
“NYK has positioned LNG fuel as one of the bridging technologies to realize future zero-emission ships. The company aims to have a clean transportation mode that will reduce the environmental burden of the entire PCTC fleet,” the company said announcing the contract,” the company said in a statement.
EEDI phase 3 compliant
The news follows rapidly on NYK’s first order for an LNG-fuelled PCTC in Q3 last year. Both vessels will feature capacity to carry 7,000 car-units and will weigh 73,500 gross-tonnes.
The first vessel is set to be delivered in 2020 and will measure 38 metres in width and just under 200 metres in length. Once complete it will be the first large LNG-powered PCTC built in Japan.
Construction of the new PCTC’s has been supported by Japan’s Ministry of Environment as well as the Ministry of Land, Infrastructure, Transport and Tourism. Both vessels are set to exceed International Maritime Organization (IMO) EEDI phase 3 requirements that are due to enter force in 2025.
Green bonds support investment
The company’s support for LNG follows the issuance of the first Green Bonds in the shipping sector by NYK in 2018. The bonds valued at U$93.5 million have maturity of five years and were launched for the sole purpose of funding environment-friendly projects.
“NYK will participate in a shipping industry working group to be established by the Climate Bonds Initiative and will cooperate in formulating evaluation criteria for Green Bonds issued by shipping companies,” a company spokesperson said.
NYK is one of the world’s largest shipping companies and is headquartered in Chiyoda, Tokyo. The group operates a fleet of 800 ships, including container ships, tankers, bulk carriers, Ro-Ro car carriers, reefer vessels, LNG carrier and cruise ships.