
Project Overview
As of 2018, international shipping accounts for approximately 2.1% of global CO2 emissions. Since the global economy is growing, demand for shipping is expected to continue increasing and, if no action is taken, CO2 emissions from the shipping sector will also continue to increase.
To achieve carbon neutrality in the shipping sector, it is essential to move away from existing heavy oil-based fuels to gas fuels such as hydrogen, ammonia, and clean methane from recycled carbon dioxide. It is also necessary to develop shipping products that utilize hydrogen and ammonia as fuels and reduce “methane slip” on vessels fueled by LNG that contains clean methane from recycled carbon dioxide.
With the goal of realizing zero-emission ships by 2050, under this project, engines, fuel tanks, and fuel supply systems will be developed for ships using hydrogen and ammonia fuels and carry out demonstration operations using actual ships. Technology will also be developed to prevent methane slip, an important challenge for using LNG-fueled ships. The project ultimately aims to strengthen the international competitiveness of Japan's shipping-related industries, and promote social implementation in conjunction with the shipping industry.

Project Features
Development of hydrogen-fueled ships

To achieve zero carbon emissions in the shipping industry, core technologies related to engines, fuel tanks, and fuel supply systems will be developed with the aim of realizing hydrogen-only combustion, and operational demonstrations of hydrogen fuel ships will be completed by 2030.
Development of ammonia-fueled ships

Core technologies related to engines, fuel tanks, and fuel supply systems will be developed that utilize a high ratio of ammonia fuel to reduce greenhouse gas emissions aiming to achieve commercial operation ahead of the previous target of 2028.
Preventing methane slip on LNG-fueled ships

To reduce methane emissions, which has high levels of greenhouse effect, technologies will be developed by 2026 to reduce “methane slip” levels on LNG-fueled ships by at least 60% using enhanced catalysts and engines.
Project Summary
Budget
Up to 35 billion yen
CO2 Reduction Effect (World)
- In 2030
- Approximately 330,000 tons/year
- In 2050
- Approximately 560 million tons/year
Economic Effect (World)
- In 2030
- Approximately 0.17 trillion yen
- In 2050
- Approximately 6.8 trillion yen
Research and Development Targets



Assumptions regarding estimates of CO2 reduction effect and economic effect
- By 2030, 10 zero-emission ships are expected to be in operation.
- CO2 emissions are expected to total 33,000 tons/year per vessel.
- Reductions of GHG emissions in international shipping through the use of next-generation fuels are viewed as key to realizing the 2050 target adopted by the International Maritime Organization (IMO).
- Price per ship is estimated at 7 billion yen.
- Price per bunker ship is estimated at 5 billion yen.
- The estimated economic impact of shipbuilding has been calculated using an input-output model and is approximately 2.2 times the price for ships.
- The estimated size of the domestic market in 2030 has been calculated on the assumption that shipbuilding volume and prices will increase between 2014 and 2030, while the estimated size of the domestic market in 2050 has been calculated by multiplying the figure for 2030 by the projected rate of growth between 2030-2050. The rate of growth used here is based on the OECD’s long-term forecast for GDP growth.
Research and Development Targets
Comparison of Hydrogen-fueled Engine Research and Development Targets
Description of technology readiness levels (TRLs) used by international organizations and classification societies
- IRENA: Implementation period for designing new ships and engines necessary for realizing decarbonization in the shipping sector. (Taken from IRENA report, “A Pathway to Decarbonize the Shipping Sector by 2050,” published October 2021.)
- IEA: Prospects for use on ocean-going ships and major developments. (Taken from IEA report, “Energy Technology Perspectives 2020,” published September 2020.)
- DNV: Demonstration testing and prospects for onboard commercial use (Taken from DNV report, “Energy Transition Outlook 2021,” published September 2021.)
Comparison of research and development targets for ammonia engines
Description of technology readiness levels (TRLs) used by international organizations and classification societies
- IRENA: Implementation period for designing new ships and engines necessary for realizing decarbonization in shipping sector. (Taken from IRENA report, “A Pathway to Decarbonize the Shipping Sector by 2050,” published October 2021.)
- IEA: Prospects for use on ocean-going ships and major developments. (Taken from IEA report, “Energy Technology Perspectives 2020,” published September 2020.)
- DNV: Demonstration testing and prospects for onboard commercial uses. (Taken from DNV report, “Energy Transition Outlook 2021,” published September 2021.)
Comparison of methane slip reduction rates
R&D by major manufacturers to address methane slip on LNG-fueled ships
- Man ES: For low-speed DF and medium-speed 4-stroke engines (using IMO standard value of 5.5 g/kWh), methane slip may be reduced 70% by after-treatment of oxidation catalysts and 90% by direct gas injections.
- Wartsila: For low-speed DF and medium-speed 4-stroke engines (using IMO standard value of 5.5 g/kWh), efforts are underway to reduce methane slip by roughly 1.0 g/kWh by 2023.
- Win GD: For low-speed DF and low-speed 2-stroke engines (using IMO standard value of 2.5 g/kWh), methane slip may be reduced by 50%.
Project Implementing Entities
[Research and Development 1]
Development of hydrogen fueled ships
Theme | Entity |
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Development of marine hydrogen engine and MHFS*. *MHFS: Marine Hydrogen Fuel Tank and Fuel Supply System |
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[Research and Development 2]
Development of ammonia fueled ships
Theme | Entity |
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Development of ships with ammonia fueled domestic engines |
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Integrated project for development and social implementation of ammonia fueled ships |
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[Research and Development 3]
Preventing methane slip on LNG fueled ships
Theme | Entity |
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Development of methane slip reduction technology from LNG fueled ships by catalyst and engine modification |
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