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This blog series brings a behind-the-scenes look at the LNG-fueled ferry development project. In this second part, we will introduce the background to the project's inception, our challenges, future initiatives, and our goals.

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Aiming to Reduce Environmental Impact and Achieve Modal Shift with Japan's First LNG-fueled Ferry (Part 1)

Striving for Net Zero Emissions by 2050 and Embracing Modal Shift Demand

1. The initiation of MOL's LNG-fueled ferry development project was driven by three main factors: efforts to reduce environmental impact, the trend toward a modal shift in logistics, and the growing demand for casual cruises, in which passengers want to enjoy the ferry as a means of transportation.
   
   Among these, transitioning from heavy oil to stable LNG fuel operations to contribute to greenhouse gas reduction was an urgent and paramount task, having set a goal to achieve net-zero emissions across the entire group by 2050, as outlined in the MOL Group Environmental Vision 2.2.
   
   Internally, a cross-departmental team was established in 2018 to discuss the LNG fueling of ferries, marking the start of in-depth investigations into the technical and economic aspects of LNG fuel supply. LNG has been used as a fuel for LNG carriers for about 40 years and is often described as a "bridging fuel" to next-generation alternative fuels. Therefore, there were considerable opinions about exploring other alternative fuels for the future. However, at that time, only a few international container shipping companies were examining the use of methanol as an alternative fuel for established routes. It was clear that LNG was the most practical and optimal choice available for immediate use as an alternative fuel.
   
   Aoyama recalls: "Our company operates about 800 vessels. A ship is built over approximately three years and used for more than 15 years. Therefore, considering the lifecycle of a ship, by 2050, every ship will have to be replaced again. With this in mind, while continuing our existing businesses, the alternative fuel we needed to choose 'now' for achieving decarbonization by 2050 was inevitably LNG."

MOL's LNG carrier

On the other hand, modal shift is not only viewed as a solution from the perspective of reducing environmental impact by transitioning the means of freight transport as briefly mentioned previously, but also as a solution to the "2024 problem (*1)" of the shortage of truck drivers that is of concern these days. As the demand for modal shift is expected to grow further, strengthening transport capacity and introducing new ferries equipped with "driver-first" facilities were natural steps for MOL.

"However, handling LNG, which is cooled to -162℃ and reduced to 1/600th of its gaseous volume, is not simple. When exposed to air, it rapidly expands back to 600 times its volume, like water dropped on a hot frying pan. This means not every domestic shipping company can readily adopt it, even as its practical use is advancing. In essence, our company had ample experience underpinned by a well-established LNG transport business, which allowed us to embark on this endeavor," Aoyama explained.

Marine Fuel GX Div., Noriyuki Aoyama

(*1) General term for the problems caused by stricter working hour regulations for motor vehicle driving jobs in Japan after April 1, 2024. Particularly, there is concern about insufficient transportation capacity due to the shortened working hours for truck drivers.

Collaborating  with Partners to Develop a New Supply Infrastructure that is Safe, Economical, Efficient, and Stable

The greatest challenge of this project was the development and establishment of a new LNG fuel supply infrastructure, an area where domestic experience was still limited.

For diesel ships, the standard practice involves bunker ships approaching the moored vessel from the sea and supplying heavy oil via the Ship to Ship method. However, at that time, there were no bunker ships in Japan capable of operating in this way with LNG fuel. Therefore, MOL entered a basic agreement with Kyushu Electric Power to develop a Truck to Ship bunkering system, where large tank lorries parked at the quayside would supply LNG to the moored ship. This method was also adopted when the LNG-fueled tugboat ISHIN, also operated by MOL, was launched in 2019. However, considering the larger fuel consumption of ferries compared to tugboats and the need to shorten the supply time, a new method was employed for Kurenai and Murasaki, using a conduit device called a 'skid' to simultaneously supply from four tank lorries.

Image of fuel supply via Truck to Ship method

"The hardest part was the difference between maritime and land rules," Aoyama explains. "We, who are normally in the maritime business, think and act according to maritime rules. However, when it came to developing the supply infrastructure, inevitably, land rules became involved, and initially, the discrepancy was quite confusing."

Torii, while considering all involved parties, laughs and says: "The preparation of the agreement, which was initially expected to be completed in about two months, took nearly half a year to finalize. Each time we tried to nail down the details, new topics to confirm would emerge, asking, 'What happens in this situation?'"

Both sides shared the same desire to prevent accidents and reduce environmental impact. However, since both parties wanted to avoid any trouble, it was difficult to make concessions. Then, the new issue of COVID-19 arose. At a time when people were not yet accustomed to online meetings, important meetings with over 40 participants had to be shifted online. While this has become commonplace now, it was a significant struggle back then. In the end, it wasn't until the project was nearing its final stages that Aoyama and his colleagues were able to meet and talk face-to-face with key stakeholders.

Marine Fuel GX Div., Wataru Torii

Presistence Rewarded: Mitsui O.S.K. Lines' LNG Ferries Receive the Good Design Award 2023

On January 13 2023, Sunflower Kurenai, Japan's first LNG-fueled ferry, set sail from Osaka Nanko Port, marking the arrival of a new era in the midst of the chilly winter air. Three months later on April 14, as the spring breeze began to blow, its sister ship Sunflower Murasaki quietly embarked on its journey from the same port.

LNG-fueled ferry “Sunflower Murasaki”, with the same specifications as “Sunflower Kurenai”

Traditionally, the work of the fuel procurement department has not been the focus of much attention. This is because on diesel ships, "fuel procurement and supply is a matter of course." In this sense, the project was expected to be quite challenging for Aoyama and his team. The maritime industry is known for having many stakeholders and a complex contract structure, and Aoyama laughs as he recalls that there were times during difficult negotiations when they "almost took uncharacteristic actions".

In extreme cases, it might be possible to find other flexible and safer methods by spending three times the current cost. In fact, there were numerous such suggestions from both inside and outside the company, and Aoyama and his team often found themselves exhausted playing the role of internal coordinator.

"It was a difficult mission because there were a lot of things that we couldn't compromise on, but that didn’t mean we could just impose our rules on the others. We never gave up and repeatedly explained the unique circumstances of the ship side in detail," both Aoyama and Torii agree.

Left: Marine Fuel GX Div., Noriyuki Aoyama       Right: Marine Fuel GX Div., Wataru Torii

In the course of steadfastly advancing the project, Aoyama has an unforgettable memory.

"The new ships had their tanks installed in high positions, which meant the usual pressure of the lorries might not suffice for smooth supply. At that time, Kyushu Electric Power specially made new high-pressure lorries with 1.5 times the usual pressure just for this project. That was a very memorable event for me," says Aoyama.

"This was the first project of its kind in Japan. There were many stakeholders and it was certainly challenging, but since we all shared the same goal, I feel we were ultimately able to work in a positive atmosphere," adds Torii.

Successfully commencing commercial voyages, the two vessels were awarded the "Good Design Award 2023 (*2)" by the Japan Institute of Design Promotion. This marks a significant milestone, with the last long-distance ferry to win being 33 years ago. Judges praised not only the launch of the country’s first LNG-fueled ferry contributing to solving environmental problems and realizing modal shift, but also the reflection of the company's over 100-year history in the naming and interior design of the ships. Additionally, the incorporation of timely updates such as providing information via QR codes and adopting universal design in terminals was commended.

(*2) Japan's only comprehensive design award system. Products, architecture, software, systems, services, etc.- whether tangible or intangible, it is recognized as design if it was created to achieve some ideal or purpose, and their quality is evaluated and awarded.

Balancing Realistic and Ideal Solutions while Thinking About the Future

The Marine Fuel GX Division's next target is to further promote the low/de-carbonization of maritime fuels, leveraging the success of this project.

Two new LNG-fueled ferries are scheduled to begin operating between Oarai Port (Ibaraki Prefecture) and Tomakomai Port (Hokkaido) in 2025.

"There are unique environmental conditions and business customs in Ibaraki and Hokkaido, so we can’t simply apply the same methods, but we plan to firmly navigate toward the start of commercial voyage by leveraging the knowledge and experience accumulated over the past few years," says Aoyama.

Additionally, MOL has already started operating LNG-fueled large bulk carriers and car carriers, and has also decided to convert large crude oil tankers (VLCC) to LNG fuel.

LNG-fueled ferry “Sunflower Kamuy” on Oarai-Tomakomai Route

Amidst this progress, Aoyama and his team feel a sense of urgency, sensing that the societal and global demands regarding environmental issues are escalating.

"The discussion when deciding to build this LNG-fueled ferry, much like other solutions that were cutting-edge until recently, are now quickly becoming outdated. However, as mentioned earlier, shipbuilding takes time, and once a vessel is launched, it is used for over 15 years. When considering fuel issues, it becomes essential to have a long-term perspective and a broader view more than ever before", Aoyama notes.

For instance, MOL is currently engaged in a joint research for the trial use of Liquefied Bio Methane (LBM) derived from livestock manure in LNG-fueled ships, which reflects this attitude. Last year, a demonstration test was conducted in Ise Bay, using LBM produced from livestock manure in the Tokachi region of Hokkaido as marine fuel. Notably, using biomass-derived carbon-neutral LBM as marine fuel is rare worldwide, and a first in Japan.

"There are still many challenges to overcome for practical application, like economic feasibility and supply stability, even more so than with LNG. However, not many have the opportunity to feel the kind of fulfillment that 'right now, I am paving the way to an unknown world.' Being involved in practical efforts towards low-carbonization through LNG-fueled ships, while also being part of creating a future toward achieving net-zero emissions by 2050, is what I believe makes working at this company so enticing", Aoyama concludes.

We will continue to promote the development of clean alternative fuel vessels, including LNG.

MOL's initiatives for clean alternative fuel → ADOPT CLEAN ENERGY

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