Nippon Yusen Kabushiki Kaisha (NYK) and Oono Development Co., Ltd. (Oono Development) have announced a collaborative effort to explore the commercialization of ship-recycling in Japan.
This initiative involves dismantling ships and large offshore structures in Japan, and recycling them into steel scrap and other materials. The memorandum of understanding (MoU) was formalized on September 18 at NYK’s headquarters in Chiyoda-ku, Tokyo. The ideas behind signing this MoU are summed up by NYK as follows:
#1 Promoting decarbonization
As the global push for decarbonization intensifies, the steel industry is increasingly shifting towards electric furnaces and expanding the use of steel scrap. Scrap with low impurity content, which is challenging to remove from molten steel, is becoming a valuable high-quality iron resource.
#2 Promoting a circular economy
Ships are constructed from high-quality steel, and over 90% of medium and large vessels are recycled into construction materials, recycled materials, or used products. Sustainable recycling requires dismantling methods that prioritize safety, environmental friendliness, and efficiency.
#3 Increased awareness of environmental protection and occupational safety
The EU Regulation on Ship Recycling, effective December 2013, and the forthcoming Ship Recycling Convention by the International Maritime Organization in June 2025 aim to enhance environmental protection and occupational safety in ship dismantling. Currently, few yards worldwide meet these stringent standards.
As informed, the ship dismantling will take place at Japan’s sole dry dock capable of handling large ocean-going vessels, which is owned by Oono Development in Chita City, Aichi Prefecture. Oono Development will use its proprietary method that combines advanced onshore dismantling and waste treatment techniques with a focus on environmental and occupational safety. This approach aims to promote the recycling and decarbonization of steel resources.
