NYK and Shin-Nippon Kaiyosha Start Japan's First 100% Biofuel Supply Trial for Ships

Jul. 27, 2022

Nippon Yusen Kabushiki Kaisha
Shin-Nippon Kaiyosha Corporation

Nippon Yusen Kabushiki Kaisha (hereinafter, NYK) and NYK Group company Shin-Nippon Kaiyosha Corporation (hereinafter, Shin-Nippon Kaiyosha) have started a test navigation using Neste Renewable Diesel (hereinafter, NesteRD) supplied by Itochu Enex Co. Ltd. (hereinafter, Itochu Enex) in tugboats operated by Shin-Nippon Kaiyosha. This is the first case in Japan of a 100% concentration of biodiesel being used in a ship.

Biofuels are made from renewable biological organic resources (biomass). Burning biofuels results in virtually zero carbon dioxide (CO2) emissions. With increasing demand for reductions in greenhouse gases (“GHG") emitted from ships by oceangoing shipping around the world, biofuels have attracted attention as a currently available alternative to heavy oil.

The biofuel being used in this trial is Neste RD, which is being imported to Japan through a contract that Itochu Corporation has signed with the Neste OYJ Group, one of the world's largest renewable fuel manufacturers.

Neste RD is a 100% renewable fuel product that is manufactured from waste cooking oil and animal oil that would not be used by the food industry. It can reduce GHG emissions on a life cycle assessment* basis by about 90% compared to petroleum-derived diesel fuel and can be used as a so-called “drop-in fuel," just like gasoline or diesel oil, without modifying the existing infrastructure. As a next-generation renewable fuel, NesteRD can greatly contribute to the reduction of GHG emissions by minimizing the introduction cost related to decarbonization measures, and its use in the shipping industry is expected to further expand in the future.

NYK Group will promote the use of environment-friendly fuels such as biofuels and contribute to the realization of a carbon-free society.


Bunkering operation.   Image by NYK.


Bunkering operation.   Image by NYK.


Chikura Maru, one of the tugs in the biofuel trial.   Image by NYK.

Overview of tugboat Chikura Maru
Overall length: 36.20 m
Overall width: 9.80 m
Mold depth: 4.40 m
Total tons: 235 tons

In February 2021, NYK released the “NYK Group ESG Story," which aims to further integrate ESG into the company's management strategy and promotes activities that contribute to the achievement of the SDGs through business activities. In March this year, NYK released the updated “NYK Group ESG Story 2022," which introduces initiatives for integrating ESG into the Group's management strategies set forth in the "NYK Group ESG Story" and provides a partial explanation of the Group's sustainable growth strategy from a long-term perspective. To strongly promote ESG management, NYK will continue to create new value as a sustainable solution provider.

* Life Cycle Assessment
A method of assessing or quantifying the environmental impact of all processes (life cycles) from the extraction of raw materials required for a product or service to the use and disposal of a product.

The NYK Group ESG Story
A guideline detailing concrete efforts to integrate ESG into management strategies of the NYK Group. Details: https://www.nyk.com/english/news/2021/esg-story_01.html

The NYK Group ESG Story 2022
Details: https://www.nyk.com/english/news/2022/20220324_01.html

Outline of each company

Nippon Yusen Kabushiki Kaisha
Headquarters: Tokyo, Japan
Established: September 1885
Representative: Hitoshi Nagasawa, President
Website: https://www.nyk.com/english/

Shin-Nippon Kaiyosha Corporation
Headquarters: Kanagawa, Japan
Established: October 1959
Representative: Tsuyoshi Kato, Representative Director
Website: https://www.snkaiyosha.co.jp/page/eng.html

NYK Group, press release