On Tuesday (Oct. 27), seven Japanese companies—Nippon Yusen, energy company JERA, Imabari Shipbuilding, Kawasaki Kisen Kaisha (K Line), Kyokuyo Shipyard, Shin Kurushima Dockyard and Nihon Shipyard—announced a partnership aimed at building an ammonia fuel supply chain in Japan, with cooperation on the construction and operation of four ammonia-fueled car carriers.

The seven companies believe this will become the first commercial supply chain integrated with ammonia fuel applications. Ammonia is attracting attention for its low carbon dioxide emissions and is seen as a promising fuel.

“By integrating our respective technologies, expertise and infrastructure, the seven companies will establish an advanced integrated business model that combines ammonia fuel procurement and supply, construction of ammonia-fueled car carriers, and development of ammonia bunkering vessels,” they said in the announcement.

To cultivate demand and support development of the entire system, Nippon Yusen and Kawasaki Kisen Kaisha have agreed to build a total of four car carriers equipped with dual-fuel ammonia engines. Each company will introduce two vessels, with completion scheduled for 2030. Imabari Shipbuilding, Shin Kurushima Dockyard and Nihon Shipyard will be responsible for the design and construction of the four ships.

The announcement included information on vessel size and said the ships will be equipped with dual-fuel engines capable of completing trans-Pacific voyages using only ammonia fuel. The companies expect these car carriers to transport finished vehicles for customers including Toyota Motor Corporation.

JERA will initially lead green ammonia production for the supply chain. The industrial company is already advancing development of a low-carbon ammonia value chain, including using low-carbon ammonia at the Hekinan Thermal Power Station and building tank-truck loading and unloading systems. JERA will produce green ammonia using renewable energy from regions such as India. To support the shipping plan, JERA will build new ship-loading facilities at the ammonia receiving terminal near the Hekinan Thermal Power Station and establish a stable supply system for bunkering vessels.

The bunkering vessel will be designed and built by Kyokuyo Shipyard, also scheduled for completion in 2030, and will be owned and operated by Nippon Yusen. It will be a specialized, dedicated vessel equipped with an advanced leak-prevention system and equipment designed for ammonia’s toxicity and corrosiveness. In addition, the vessel will be designed to support ship-to-ship (STS) bunkering.

The project will be integrated through the establishment of a fuel sales joint venture. The joint venture will be jointly established by Nippon Yusen and Kawasaki Kisen Kaisha.