Kawasaki Kisen Kaisha, Ltd.TSE: 9107

'K' LINE Signs Shipbuilding Contracts for Four LNG-fueled Car Carriers for European Short-sea Business

· Issued by Kawasaki Kisen Kaisha, Ltd.

Kawasaki Kisen Kaisha, Ltd. ('K' LINE) is pleased to announce that it has signed shipbuilding

contracts with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. for four 1,380-vehicle

capacity LNG dual-fuel car carriers. The vessels were ordered for 'K' Line European Sea

Highway Services GmbH (KESS)*1, the 'K' LINE's European subsidiary.

The vessels are designed for the frequent transport of small lots in European short sea shipping.

They are also designed to comply with size restrictions, which some European ports for imported

cars have. 'K' LINE is confident that these vessel specifications will give KESS a competitive

advantage in its European short sea shipping operations.

The vessels are equipped with straight stern ramps*2 with a load capacity of 60 tons. This

enhances KESS's capacity to handle heavy and oversized cargo and increases its flexibility to

carry a wide variety of cargo types in addition to passenger cars.

The use of LNG fuel is expected to reduce emissions of carbon dioxide (CO2), a greenhouse gas

(GHG), by 25% to 30% and emissions of sulfur oxides (SOx), which cause air pollution, by almost

100% compared to conventional vessels using heavy fuel oil. Additionally, to further reduce GHG

emissions throughout the 'K' LINE Group, we will consider using bio-diesel and bio-LNG fuel, or

liquefied bio methane, in addition to LNG fuel.

The vessels each use a high-pressure type ME-GI engine with a shaft generator, reducing

emissions of methane slip (unburst gas), which is a greenhouse gas(GHG). While boil-off gas

(BOG) generated from LNG tanks is generally used as fuel for generator engines on a vessel

with a high-pressure main engine, these vessels are equipped with vacuum-insulated LNG tanks

to reduce the generation of BOG. This enables a machinery configuration with lower methane

slip emissions.

Under the Group's long-term environmental policy, 'K' LINE Environmental Vision 2050: Blue

Seas for the Future,*3 the 'K' LINE Group set the target of achieving net-zero GHG emissions in

2050. In line with this, 'K' LINE has been working to introduce and operate LNG-fueled ships.

The continuous use of bio-LNG is one of its key initiatives for achieving this target. 'K' LINE will

continue to work hard on the decarbonization of the marine transport industry, including through

the use of carbon-neutral and zero-emissions fuels.

*1 KESS is a wholly owned subsidiary of 'K' LINE that operates short sea and coastal transport

services for completely built-up cars in Europe.

*2 A stowable, ramp-like passage installed at the stern of a vessel enabling vehicles to drive on

and off the ship.

*3 'K' LINE Environmental Vision 2050: Blue Seas for the Future is a set of long-term guidelines

regarding the environment that was established in 2015 and revised in 2020. As part of our action

plan to reduce GHG emissions, we are engaged in a number of initiatives, such as the

introduction of zero-emission fuels, such as ammonia and hydrogen, and carbon-neutral fuels

such as bio-LNG and synthetic fuels.

https://www.kline.co.jp/en/sustainability/environment/management.html

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