Imabari Shipbuilding sets sights on alternative-fueled engines through new acquisition

Japanese major Imabari Shipbuilding has decided to acquire shares in compatriot marine equipment manufacturer Daihatsu Diesel Corporation in a bid to contribute to the development of alternative-fueled engines.

Under the agreement revealed on January 28, 2025, Imabari intends to purchase 15.47% shares.

The acquisition is planned to close on April 1, 2025.

According to the shipbuilder, this move will contribute to strengthening ties with Daihatsu Diesel and provide a stable supply of major equipment for merchant ships.

Through this acquisition, Imabari also expects to contribute to the development of alternative-fuel engine solutions and reduce greenhouse gas (GHG) emissions in line with objectives set by the International Maritime Organization (IMO) for achieving zero GHG emissions from international shipping by 2050.

Earlier this month, Daihatsu Diesel revealed that its Himeji Plant’s “Test Operation Facility Development Plan for Supplying 4-Stroke Ammonia-Fueled Engines” was adopted as part of Japan’s Ministry of the Environment and Ministry of Land, Infrastructure, Transport and Tourism’s public “Zero Emission Ship Construction Promotion Project”.

Daihatsu’s plan envisions developing ammonia-fueled engines that will be introduced to the market in FY2028 to actively contribute to the decarbonization of marine transportation.

The company aims to produce more than 60 four-stroke ammonia-fueled engines per year by around 2040 and to have a 40% share of the global market (50% share in the domestic market) for those engines installed on medium- and large-sized ocean-going cargo ships.

As part of the “Zero Emission Ship Construction Promotion Project”, the ministries have selected 16 project proposals to promote the construction of zero-emission vessels that use ammonia, hydrogen, etc. as fuel, resulting in investments of over JPY 120 billion (about $777.8 million) in production facilities in Japan’s shipbuilding and marine equipment industry.

With the project, Japan aims to “capture the world’s top share of next-generation ships”.

One of the selected proposals includes a hydrogen-fueled engines and hydrogen fuel cell systems production plan from Yanmar Power Technology, part of Japan’s industrial diesel engine and machinery manufacturer Yanmar Holdings.