Japanese shipping giant Nippon Yusen Kaisha (NYK Line) has officially finalized contracts for the construction and long-term charter of its inaugural Very Large Crude Oil Carrier (VLCC) powered by a dual-fuel methanol main engine.

The groundbreaking vessel, marking a first for NYK’s VLCC operations, will be constructed by Nihon Shipyard Co Ltd, a joint venture between Japan Marine United Corporation and Imabari Shipbuilding Co Ltd. Upon completion, the state-of-the-art tanker will be deployed under a long-term charter agreement with Idemitsu Tanker Co Ltd, a prominent player in the oil transportation sector.

With a deadweight tonnage (dwt) of approximately 310,000 tons and an overall length of 339.5 meters, this Malacca Max-type VLCC will be equipped with a cutting-edge dual-fuel main engine, enabling it to operate on both methanol and conventional heavy fuel oil. This dual-fuel capability provides operational flexibility while significantly reducing greenhouse gas (GHG) emissions when utilizing methanol as the primary fuel source. Furthermore, the vessel will feature a large shaft generator, contributing to enhanced energy efficiency and reduced fuel consumption.

The design of this next-generation environmentally friendly VLCC is a result of collaborative efforts between NYK Line, Idemitsu Tanker, IINO Kaiun Kaisha Ltd and Nippon Shipyard. The consortium of Japanese maritime leaders had previously joined forces in January 2024 to spearhead the research and development of an eco-conscious VLCC, setting an ambitious target of achieving up to a 40% reduction in GHG emissions compared to conventional vessels.

The initial design concept for this methanol-capable Malacca Max VLCC, hailed as a first of its kind in Japan, was publicly unveiled in October 2024, generating considerable excitement within the industry. The formalization of the construction and charter contracts now solidifies this vision into a tangible project with a clear timeline.

Scheduled for delivery in 2028, this vessel represents a significant investment in sustainable shipping infrastructure. By embracing methanol as a marine fuel, NYK is proactively addressing the growing pressure to reduce the environmental impact of maritime transportation and aligning with global efforts towards a zero-emission future. Methanol is increasingly recognized as a promising alternative fuel due to its potential for significant GHG emission reduction, its relatively established bunkering infrastructure compared to other nascent fuels, and its liquid form at ambient temperatures, simplifying storage and handling.

This landmark deal not only positions NYK as a frontrunner in the adoption of methanol as a marine fuel within the VLCC segment but also sends a strong signal to the broader shipping industry about the viability and increasing attractiveness of alternative fuels.