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Courtesy of NYK Cruises Co. The Asuka III is shown at its launch ceremony in Germany in January.
By Rui Suzuki / Yomiuri Shimbun Staff Writer
1:00 JST, April 8, 2025
Liquefied natural gas is drawing increasing attention among major shipping companies as it is known to emit less carbon dioxide than heavy oil.
The European Union’s new environmental regulations make decarbonization a pressing issue for the shipping industry, but the use of next-generation fuels, such as hydrogen and ammonia, is slow to spread. Although LNG was seen as a “transitional” fuel compared to next-generation fuels, shipping firms are likely to rely on it for the time being.
Cruise, cargo ships
NYK Cruises Co., a subsidiary of Nippon Yusen Kabushiki Kaisha, or NYK Line, will begin operating Asuka III, a large cruise ship with a capacity of 744 passengers, in July. It will be the first cruise ship in Japan to use LNG as fuel.
Heavy oil has been widely used as fuel for ships as it is easy to store and has a well-developed supply network. But if it is replaced with LNG, CO2 emissions are believed to be reduced by about 20%.
“Unless we make efforts to become eco-friendly, we may become unable to operate vessels in the future,” said NYK Cruises President Hiroyuki Endo.
The use of LNG is also expanding to cargo ships. Mitsui O.S.K. Lines, Ltd., or MOL, is currently working on 37 LNG vessels. The company plans to use them on European routes and elsewhere in response to the European Union this past January tightening environmental regulations on ships in and out of ports in the region. Kawasaki Kisen Kaisha, Ltd. is also in the process of upgrading 17 vessels.
LNG supposed to be temporary
The country’s major shipping companies have set a goal of reducing greenhouse gas emissions to practically zero by 2050. LNG carriers are used as one of the firms’ environmental initiatives, but if they continue using LNG, which is a fossil fuel, it will not lead to decarbonization. Therefore, they had originally planned to reduce CO2 emissions by using LNG as a transitional fuel until around 2010 until next-generation fuels, such as ammonia and hydrogen fuels, become widely available.
However, recently a growing number of people in the shipping industry believe that the shift to next-generation fuels is likely to be delayed longer than expected because the development of next-generation fuels is facing difficulties.
One of the challenges is the enormous amount of energy required to produce fuels which do not emit CO2 during the manufacturing process. According to the Japan Transport and Tourism Research Institute, or JTTRI, a large amount of energy equivalent of 70,000 large windmills with a capacity of 20,000 kilowatts will be necessary to supply all ships around the world with renewable fuels. Therefore, projects are being scaled down or withdrawn one after another in Europe and the United States.
‘Favorite has yet to emerge’
Yet, shipping companies are divided in their response.
NYK Line has started work toward the scheduled start of ammonia-fueled vessels’ operation in November 2026. NYK Line President Takaya Soga said he believes “ammonia fuels will play a leading role.” The company became one of the first to start investing in ammonia fuels in an effort to expand its use throughout the industry.
MOL, on the other hand, plans to have 130 ocean vessels with virtually no greenhouse gas emissions by 2035. But it has not decided which fuel to use because “a favorite has yet to emerge,” as President Takeshi Hashimoto put it. Kawasaki Kisen Kaisha, too, has no concrete plans for building ships using next-generation fuels.
In order to operate ships that use next-generation fuels, it is essential not only to build ships, but also to establish a stable production and supply system. Some within shipping companies say that they cannot place orders for such ships if they are not sure whether they will be able to supply fuel.
Meanwhile, Chinese and South Korean companies are developing vessels using ammonia fuels. China is also increasing its presence in fuel production by proceeding with the construction of biofuel production bases in the port of Dalian and elsewhere.
“The spread of next-generation fuels is a global issue, but it’s also a business opportunity. It’s necessary to increase support to Japanese firms so they do not lose their technological lead,” said Shinichiro Otsubo, a distinguished project research fellow at JTTRI.
