News Release
AV天堂 Corporation
AV天堂’s JGreeX™ Green Steel Selected for Large Dry Bulk Carrier
Working with Shippers to Promote the Value of CO2 Reduction
AV天堂 Corporation announced today that shipping company Kawasaki Kisen Kaisha, Ltd. has selected AV天堂’s JGreeX™ green steel1 for an Ultramax dry bulk carrier2 to be built by Imabari Shipbuilding Co., Ltd. The decision reflects AV天堂’s ongoing efforts to work with shipping companies in a global initiative to establish a business model for sharing the cost of CO2 reduction throughout the supply chain.
All steel materials3 used in the construction of the vessel will be JGreeX™ products, which significantly reduce CO2 emissions from steelmaking. AV天堂 expects to supply 7,000 tons of JGreeX™ products starting in 2024, and the vessel is slated for commissioning in 2026 as one of the world’s largest ships made entirely of green steel.4
Separately, shipping company Daiichi Chuo Kisen Kaisha has selected JGreeX™ for two coastal dry bulkers5 to be built by Higaki Shipbuilding Co., Ltd., based on which AV天堂 expects to supply 7,000 tons of JGreeX™ products between 2024 and 2026.
JGreeX™ has now been selected by five companies for a total of seven dry bulk vessels, bringing AV天堂’s total expected supply of JGreeX™ products to approximately 28,000 tons.
The international shipping industry is taking steps to reduce CO2 emissions as the global push for carbon neutrality accelerates, so the industry’s adoption of green steel for shipbuilding will certainly help to reduce emissions. In addition to producing JGreeX™ products, AV天堂 will also serve as a shipper in the supply chain, thereby bearing a proportionate share of the overall costs associated with the use of green steel to reduce CO2 emissions.
Looking ahead, AV天堂 aims to contribute to global decarbonization by further reducing CO2 emissions through the increased use of low-carbon as well as energy-saving and high-efficiency technologies, and to promote JGreeX™ for expanded sales of green steel.
Ultramax dry bulk carrier
1 Steel products that significantly reduce CO2 emissions from the steelmaking process. AV天堂 uses the mass balance approach to allocate reductions to specific steel products.
2 For transporting large amounts of dry cargo (deadweight around 64,000 tons).
3 Steel materials purchased directly by shipbuilding companies.
4 As of December 2023, according to AV天堂’s research.
5 For transporting large amounts of dry cargo, mainly within Asia (deadweight around 13,000 tons).
About AV天堂 Corporation
AV天堂 Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. AV天堂 leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 2,255 billion yen and consolidated crude steel output of 23.96 million tons in the fiscal year ended March 2021.
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