NYK and Oono Development Partner for Green Ship Recycling in Japan

Japan’s NYK (Nippon Yusen Kabushiki Kaisha) is teaming up with Oono Development Company to investigate the potential for green ship recycling in Japan. The collaboration aims to study the commercialization of ship recycling, emphasizing the importance of eco-friendly practices and the rising interest in recycling materials to support a circular economy. Ships are primarily composed of high-quality steel, with over 90 percent of medium and large vessels being recycled for construction materials, recycled materials, or used equipment. The operations in Alang, India, are renowned for repurposing ship materials for India and other countries’ steel and construction industries.

Despite the current lull in ship recycling, analysts predict a forthcoming surge as companies adapt to new environmental regulations. NYK acknowledges the scarcity of ship recycling yards worldwide that meet the necessary standards. The International Maritime Organization’s Ship Recycling Convention, set to be enforced in June 2025, is expected to intensify pressure for compliance. The Hong Kong Convention, proposed 15 years ago and recently signed by Liberia and Bangladesh, establishes safety and environmental protection standards for ship recycling.

Oono Development possesses Japan’s sole large dry dock, located in central Japan near Nagoya, which will serve as the focal point for the recycling operation. The expansive site, covering nearly a hundred acres, features mooring facilities and a coastal quay to facilitate operations. The dry dock, spanning over 2,600 feet in length, can accommodate two large ocean-going vessels simultaneously. The companies plan to utilize the dry dock method for vessel dismantling and explore the construction of a high-efficiency incineration power generation facility to manage industrial waste effectively.

The partnership anticipates business prospects in selling valuable resources recovered from ships, such as steel and used equipment. By promoting the circular economy and aligning with decarbonization trends, the steel industry is transitioning towards electric furnaces, with scrap steel from ships offering low impurity content that is desirable and cost-effective for electric furnace operations. This shift underscores the increasing appeal of scrap steel for rerolling processes.

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