Japan's First LNG-fueled Ship Receives Technology Special Award at the 2015 Ship of the Year Awards

Japan's first LNG-fueled ship, Sakigake, which is a tugboat owned by NYK has been recognized with a Technology Special Award at the 2015 Ship of the Year Awards sponsored by the Japan Society of Naval Architects and Ocean Engineers (JASNAOE). An awards ceremony was held on July 7 at the Kaiun Club in Tokyo.

This is the 26^th year that JASNAOE has recognized the most technically advanced, well-designed, and socially conscious vessels built in Japan, and Sakigake was noted by manufacturers and related organizations for the tugboat???s environmental performance, design, and technological developments.

And this is not the first time for the NYK Group to be honored. The group???s cruise ship Crystal Harmony, which has since been refurbished and rebranded as Asuka II, was recognized as ???Ship of the Year" in 1990. NYK-Hinode Line Ltd.???s two module carriers Yamatai and Yamato were given special awards in 2010. And the NYK-owned coal carrier Soyo was selected as "Ship of the Year" in 2013.

The NYK-owned Sakigake is equipped with dual-fuel engines that can use not only diesel oil but also LNG. Compared with conventional tugboats that use marine diesel oil, Sakigake emits about 30 percent less carbon dioxide, 80 percent less nitrogen oxide, and absolutely no sulfur oxide when using LNG as fuel.

Sakigake was built* by Keihin Dock Co. Ltd. (head office: Yokohama) and delivered in August 2015. The tug has been chartered to Wing Maritime Service Corporation (head office: Yokohama) from NYK and operated mainly at the ports of Yokohama and Kawasaki.

In accordance with the NYK Group???s ???More Than Shipping 2018??? medium-term management plan, NYK has been implementing a number of creative solutions, such as the construction of the world???s first LNG-fueled car carrier and LNG bunkering vessel. NYK will contribute to the continuing promotion and development of LNG fuel for ships for reduced environmental loads.

* The project to build Sakigake received subsidies from Japan???s Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure and Transport, which support projects promising energy-saving logistics and innovative maritime transport improvements. Nippon Kaiji Kyokai also provided joint research support.

NYK Selected for FTSE4Good Index for the 14th Straight Year

NYK has been selected by the FTSE Group,* a global index provider, as a constituent in the FTSE4Good Index, marking the 14th straight year that the company has been included in this major yardstick for socially responsible investment (SRI).**

The FTSE4Good Index is a leading indicator used by investors who place importance on corporate social responsibility and sustainability. A total of 823 global companies around the world, including 160 Japanese companies, are listed in the FTSE4Good Global Index as of June 20, 2016.

NYK also has been selected for a number of SRI indexes, including the Dow Jones Sustainability Asia/Pacific Index (USA) and Morningstar (Japan).

NYK, as a good corporate citizen, will earnestly face up to its social responsibility, and contribute to the achievement of a better global society through the action of environmental preservation and other initiatives.

* Wholly owned subsidiary of the London Stock Exchange. The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social, and Governance (ESG) practices. Companies included in the index have met stringent ESG criteria and are positioned to capitalize on the benefits of responsible business practices.

 ** Investments in companies engaged in ethical activities and confirmed through financial analyses to meet established investment standards.

Oil Production Starts at Third FPSO Unit off the Shore of Brazil

In July, a third floating production, storage, and offloading (FPSO)* unit deployed by NYK for the BM-S-11 consortium** through a joint venture company started oil production in a pre-salt area off Brazil.

This FPSO unit, FPSO Cidade de Saquarema, is owned by a shareholder consortium comprising SBM Offshore N.V. (Netherlands), Queiroz Galvão ??leo e Gás S.A. (Brazil), and a joint venture company between NYK (48.72 percent; head office: Tokyo; president: Tadaaki Naito) and the Mitsubishi Corporation (51.28 percent; head office: Tokyo; president & CEO: Takehiko Kakiuchi). The joint venture has a 20-year time charter contract with Petroleo Brasileiro S.A. (Petrobras) to operate the FSPO.

NYK will aim to further advance its expertise in the FPSO business by dispatching technical staff to this project as well as FPSO Cidade de Paraty.***

In accordance with its ???More Than Shipping 2018??? medium-term management plan, NYK will continue to make use of its extensive technical know-how to expand and develop its business in the offshore industry, which is expected to grow remarkably.

Outline of FPSO

Oil processing capacity        150,000 barrels of oil per day

Gas processing capacity       6 million cubic meters per day

Oil storage capacity              1.6 million barrels

Water injection capabilities    200,000 barrels per day

Mooring type                        Spread mooring

* An FPSO unit is a ship-shaped offshore installation that produces crude oil by separating solids, water, and gases from liquid drawn from reservoirs beneath the seabed and storing the oil until it is offloaded to shuttle tankers or export tankers.

** BM-S-11 is a consortium (comprising Petrobras (65%), BG E&P Brasil Ltda (25%), and Petrogal Brasil Ltda (10%)) that owns the BM-S-11 fields offshore Brazil.

*** FPSO Cidade de Paraty is deployed for the BM-S-11 consortium and started oil production in June 2013 in the Lula Field.

Japan's First LNG-fueled Tugboat Garners Recognition for NYK at 17th Annual Logistics Environment Awards

NYK, Wing Maritime Service Corporation (head office: Yokohama; president: Toshinori Yamashita), and Keihin Dock Co. Ltd. (head office: Yokohama; president: Tsutomu Shoji) have jointly received the Technological Development Award at the 17^th annual Logistics Environment Awards* sponsored by the Japan Federation of Freight Industries (JFFI). The award recognized the environmental load reduction achieved by Japan's first LNG-fueled tugboat, Sakigake. This is the third time since 2009 that NYK has been honored at this annual awards ceremony.

NYK has been conducting technical research and development on the use of LNG to fuel ships in order to meet the tightened regulations on CO₂ emissions** from vessels. Sakigake, which was delivered in August 2015 and comes equipped with dual-fuel engines that can use either LNG or diesel oil, was highly evaluated by the Japan Federation of Freight Industries because LNG fuel has much less of an environmental impact compared with heavy fuel oil.***

In accordance with the NYK Group???s ???More Than Shipping 2018??? medium-term management plan, NYK has been implementing a number of creative solutions, such as the construction of the world???s first LNG-fueled car carrier and LNG bunkering vessel. NYK has also teamed with Engie and the Mitsubishi Corporation to develop the LNG bunkering business, and will contribute to the continuing promotion and development of LNG fuel for ships for reduced environmental loads.

* Logistics Environment Awards

Organizations, corporations, and individuals are recognized by JFFI (chairman: Yasumi Kudo) for efforts to protect the environment and enhance environmental awareness in the sphere of logistics and thereby contribute to the sound development of logistics. These awards were founded in 2000 and are presented annually.

** Tightened Regulations on CO₂ Emissions

The requirements applicable to ships for controlling sulfur oxides (SOx), nitrogen oxides (NOx), and carbon dioxide (CO₂) emissions are becoming stricter every year. In particular, regulations aimed at reducing SOx emissions by vessels are becoming ever more stringent. Applicable emission limits were reduced from 1.0% to 0.1% in 2015 in certain emission control areas, or ECAs (the North Sea, the Baltic Sea area, and areas around North America). Outside the ECAs, emission limits will be reduced from the current limit of 3.5% to 0.5% in 2020 or 2025.

*** Environmental Impact of LNG Fuel

Use of LNG almost completely eliminates SOx and particulate matter (PM) emissions, and the operation of LNG-fueled vessels can result in a reduction of nearly all SOx and PM emissions compared to emissions by vessels powered with conventional heavy fuel oil. Use of LNG can also reduce CO₂ emissions by approximately 30% and can reduce NOx emissions by up to 80%. The widespread adoption of LNG is thus considered to be an influential measure by ships to control greenhouse gas emissions.