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Japanese firms receive NEDO approval to begin ammonia-fuelled vessel demonstration projects

Tugboat and ammonia gas carrier will be powered by domestically produced ammonia-fuelled engines developed by IHI Power Systems and Japan Engine Corporation.
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NYK Line, Japan Engine Corporation, IHI Power Systems Co., Ltd., and Nihon Shipyard Co., Ltd. on Tuesday (26 October) said they have received an approval from Japan’s New Energy and Industrial Technology Development Organization (NEDO) for the companies to participate in a demonstration project to commercialise vessels equipped with a domestically produced ammonia-fueled engine as part of the Green Innovation Fund project.

The demonstration project scheduled to begin in December with ClassNK aims to use ammonia as fuel to significantly reduce greenhouse gas (GHG) emissions during voyages and thus introduce an ammonia-fueled vessel for the good of society earlier than 2030. 

The companies will eventually work toward the goal of achieving zero emissions from ships in the future.

The companies and ClassNK’s greatest goals are to realise the development of an ammonia-fueled vessel that is internationally competitive ahead of other countries, and to lead the development of safety guidelines and laws and regulations related to ammonia-fueled vessels. 

In order to achieve these goals, marine engine manufacturers, shipyards, class societies, and shipping companies in Japan will work together to consistently cooperate from the research and development stage to engine development, shipbuilding, and commercialisation, says NYK Line.

With the entry into force of the Paris Agreement in 2016, the global momentum for decarbonisation is increasing. The Japanese government has declared that it will reduce GHG emissions to zero as a whole by 2050 and aim for carbon neutrality, and the energy shift toward the realisation of a carbon-free society is accelerating.

Reducing GHG emissions is also an urgent issue in the shipping industry, and research and development is being conducted to convert marine fuel from conventional heavy fuel oil to liquefied natural gas (LNG) and to popularise next-generation zero-emission fuels such as hydrogen and ammonia. 

Ammonia does not emit carbon dioxide (CO2) even when burned, so it is expected to be a next-generation fuel that contributes to global warming countermeasures. 

Furthermore, it is said that by utilising CO2-free hydrogen for hydrogen, which is the raw material for ammonia, it is possible to achieve zero emissions in consideration of the fuel life cycle. 

Under this background, Japan’s Ministry of Economy, Trade and Industry started the Green Innovation Fund project toward carbon neutrality by 2050, and NEDO has approved the Companies’ development of vessels equipped with a domestically produced ammonia-fueled engine as part of the Green Innovation Fund project, it states.

Overview of demonstration project and the roles of Companies

NEDO has approved these demonstration projects, (1) the development and operation of an ammonia-fueled tugboat and (2) the development and operation of an ammonia-fueled ammonia gas carrier, and the companies will carry them out.

(1) Development and operation of an ammonia-fueled tugboat (A-Tug)

The ammonia fuel will have a flame retardant bottleneck, which is difficult to ignite, so this project assumes that a small amount of fuel oil will be used as pilot fuel. Targeting the delivery of A-Tug in FY2024, the companies aim to reduce GHG emissions by achieving an ammonia fuel mixed combustion rate of 80% or higher.

The companies will confirm safe operation in demonstrations aimed to improve the mixed combustion rate with a view to achieving zero GHG emissions by using biofuel as a pilot fuel in the future.

NYK Line Project management, ship design and legal compliance
IHI Power Systems Co., Ltd. Research and design of four-stroke engine
Nippon Kaiji Kyokai (ClassNK)    Safety assessment of A-Tug

 

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Image of A-Tug

(2) Development and operation of an ammonia-fueled ammonia gas carrier (AFAGC)

Targeting the ship’s delivery in FY2026, the Companies will develop and operate an ammonia-fueled ammonia gas carrier (AFAGC) with the concept of transporting ammonia as cargo and using the cargo and ammonia gas vaporized from the cargo as fuel during the voyage.

The Companies aim to reduce GHG emissions by achieving a maximum ammonia fuel mixed combustion rate of 95% for the main engine that moves the ship, and an ammonia fuel mixed combustion rate of 80% or more for the auxiliary engine that runs the generator.

NYK Line Project management, ship design and legal compliance
Japan Engine Corporation Research and design of two-stroke engine (main engine)****
IHI Power Systems Co., Ltd. Research and design of four-stroke engine (auxiliary engine)
Nihon Shipyard Co., Ltd. Development of hull, examination of ship construction method
Nippon Kaiji Kyokai (ClassNK)  Safety assessment of AFAGC

 

2 4

Image of AFAGC

 

Photo credit: NYK Line
Published: 27 October, 2021

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Alternative Fuels

MOL inks bio-LNG bunker fuel supply deals with Titan and Axpo for car carriers in Europe

Titan, part of Amsterdam-based Molgas, will continue to supply bio-LNG fuel in Northwest Europe, while Axpo will take charge of supply in the Mediterranean region.
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MOL inks bio-LNG bunker fuel supply deals with Titan and Axpo for car carriers in Europe

Mitsui OSK Lines (MOL) on Thursday (18 July) said it has signed new supply agreements in Northern Europe and the Mediterranean region to expand the use of bio-LNG marine fuel on MOL-operated LNG-fuelled car carriers.

Titan, part of Amsterdam-based Molgas, will continue to supply bio-LNG fuel in Northwest Europe, while Axpo will take charge of supply in the Mediterranean region.

MOL said the agreement makes it possible for its company to supply bio-LNG fuel for automobile carriers in the Mediterranean region, specifically Port of Malaga and Barcelona in Spain, following the bio-LNG fuel supply agreement in Western Europe, which commenced in March last year.

The bio-LNG fuel to be supplied in this initiative has a lifecycle carbon intensity (carbon dioxide emissions per unit of energy consumption) of -15 g-CO2/MJ or less, from production through consumption. Furthermore, this bio-LNG fuel has obtained International Sustainability and Carbon Certification (ISCC-EU). 

“Through this supply agreement, MOL has established a framework that ensures a continuous and stable supply of bio-LNG fuel not only in Northern Europe but also in the Mediterranean,” the company said.

As part of the group’s efforts to adopt alternative fuels and achieve net-zero greenhouse gas (GHG) emissions, it is utilising LNG-fuelled vessels as a bridge solution to facilitate the transition to carbon-neutral fuels such as bio-LNG and synthetic LNG (e-methane).

In 2025, MOL signed a bio LNG fuel supply agreement in Northwest Europe with Titan, part of the Molgas, and MOL has continued this bio LNG fuel supply agreement with the same company in 2026 as well.

 

Photo credit: Mitsui OSK Lines
Published: 19 June, 2026

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Biofuel

Kvasir Technologies lands EUR 10 million to scale bio bunker fuel production

The Danish biofuel startup raised the fund in a Series A investment round, which will provide capital to develop and design a new commercial production plant and scale climate-neutral drop-in marine fuel.

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Kvasir Technologies lands EUR 10 million to scale bio bunker fuel production

Danish biofuel startup Kvasir Technologies on Thursday (18 June) said it has raised EUR 10 million (USD 11.4 million) in a Series A investment round with participation from European Energy as a new investor, alongside existing investors EIFO, Maersk Growth and Footprint Fund. 

The Series A round provides capital to develop and design a new commercial production plant and scale climate-neutral drop-in fuel to be used in existing vessels.

At the same time, European Energy and Kvasir Technologies are entering into a strategic partnership by establishing the company KVEEN Biofuels, which is working towards the construction of a commercial-scale plant to produce biofuels using Kvasir Technologies’ patented technology.

“This investment round enables us to take the next crucial steps in developing and scaling our technology. At the same time, it underlines that there is still strong support for solutions that can deliver real climate impact in the maritime sector,” said Joachim Bachmann Nielsen, Ph.D. in Chemical Engineering and CEO of Kvasir Technologies.

Kvasir Technologies, a spin-out from research at the Technical University of Denmark (DTU), has developed a new technology to convert a wide range of non-edible lignin- based residues from agriculture and forestry into refined biofuels for shipping.

The climate-neutral biofuel can serve as an immediate replacement for fossil marine fuel without the need to modify ship engines or change existing infrastructure.

The new funding will be used, among other things, to scale the technology at Kvasir Technologies’ test facility in Fredericia, which can produce up to 2 metric tonnes (mt) of biofuel per day.

At the same time, development work will begin on the first commercial plant in the city of Aabenraa in the southern part of Jutland, which will demonstrate the technology on an industrial scale.

 

Photo credit: Kvasir Technologies
Published: 19 June, 2026

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Engine

BeHydro secures LR’s first class approval for 100% hydrogen marine engine

Engine has been developed and tested at ABC Engines’ facility in Ghent and is designed to operate entirely on hydrogen, without the need for pilot fuels.
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BeHydro secures LR’s first class approval for 100% hydrogen marine engine

Classification society Lloyd’s Register (LR) on Wednesday (17 June) said it has issued the first Type Approval Certificate for a 100% hydrogen-fuelled, spark-ignited marine engine.

The approval has been awarded to the hydrogen engine developed by BeHydro and confirms the design meets LR’s requirements for safety, performance and reliability in marine applications.

The engine has been developed and tested at ABC Engines’ facility in Ghent and is designed to operate entirely on hydrogen, without the need for pilot fuels. This simplifies system design and removes onboard carbon emissions at source, positioning the technology as a practical option for operators exploring zero-carbon propulsion.

Claudene Sharp-Patel, Global Technical Director, Lloyd’s Register, said: “The issue of this Type Approval Certificate demonstrates that hydrogen-fuelled internal combustion engine technology is continuing to mature as a viable option for maritime applications.

“For shipowners and operators, independent certification is essential in building confidence that emerging fuel technologies can meet the industry’s expectations for safety, reliability and operational performance.”

Tim Berckmoes, CEO at ABC Engines, said: “This LRS type approval of our BeHydro 100% hydrogen engines with zero emissions is a confirmation of the future proof technology that BeHydro can offer to innovative shipowners worldwide.

“The 100% hydrogen engine range is available from 900 kW till 2670 kW for different marine applications.”

LR previously awarded Type Approval to BeHydro for its hydrogen-powered dual-fuel engine in 2023, which was the first Type Approval for a dual-fuel hydrogen engine. 

 

Photo credit: Lloyd’s Register
Published: 19 June, 2026

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