Japanese steelmaker JFE Steel has announced that it has launched its new liquefied natural gas (LNG)-fueled bulk carrier with a capacity of 210,000 dwt for raw material transportation. This the first capesize LNG-fueled vessel built in a Japanese shipyard.
As part of a charter deal, local shipping company NYK Line will operate the bulk carrier named SG Ocean. The vessel will transport iron ore and coal from overseas to JFE Steel’s plants in Japan. LNG will help JFE Steel to reduce greenhouse gases emitted from the ship compared to the conventional heavy fuel oil.
JFE Steel also inked long-term agreements with Kawasaki Kisen Kaisha and Mitsui O.S.K. Lines for similar LNG-fueled bulk carriers. Construction of these vessels will be completed by 2025. In addition, Japanese steelmaker plans to gradually switch to LNG-fueled ships in the future. This will help the company in its efforts to become carbon neutral by 2050.