TOKYO: Nippon Yusen has ordered 12 heavy car carriers using liquefied natural gas (LNG) as fuel, it said on Tuesday, as it steps up efforts to cut carbon emissions.
The order, preliminary at this stage, will more than double the number of LNG-fuelled fueled car carriers the Japanese shipping company has in operation or under construction, Nippon Yusen said in a statement.
After introducing rules last year to cut the sulphur content in marine fuels, shipping companies have come under increased pressure cut carbon emissions as governments around the world set tougher targets to deal with climate change.
An estimated 400 of the more than 80,000 registered ships use LNG, with numbers expected to rise sharply in the next decades, industry sources say.
Nippon Yusen said by using LNG as a fuel and modifying hull designs to improve economy, carbon emissions can be cut by around 40% versus conventional heavy fuel.
The company has one heavy car carrier – giant ships that transport finished vehicles – operating now and plans to have eight in operation by 2024, the statement said. The investment for 20 LNG-fuelled ships will total about 200 billion yen ($1.8 billion), it said.
The new ships are expected to be delivered between around 2025 and 2028 and will be built by Shin Kurushima Dockyard and Nihon Shipyard, both unlisted companies.