Japanese shipping major NYK and Norway’s vessel operator Knutsen Group have established a joint venture company for the commercial development of a liquefied CO2 (LCO2) marine transportation and storage business worldwide.
The duo will be using the Knutsen developed technology PCO2 which allows transport of liquified CO2 at ambient temperatures.
As informed, NYK and Knutsen will each hold a 50% stake in the new company, which has been named Knutsen NYK Carbon Carriers AS (KNCC). The Haugesund-based JV will need to get relevant regulatory approvals.
KNCC will also build and operate low/mid pressure vessels based on other technologies.
Carbon capture, utilization and storage (CCUS) is said to be an effective and necessary concept for realizing a carbon-neutral society. In this value chain, liquefied CO2 carriers play an essential role in transporting liquefied CO2 to the sites where it is stored and/or utilized. The demand for liquefied CO2 carriers is expected to grow rapidly going forward.
The Knutsen Group and NYK claim to have ‘an innovative approach’ towards using and further developing new technology to meet a carbon neutral future.
Being part of the same group as the operator of shuttle tankers through Knutsen NYK Offshore Tankers (KNOT), KNCC will provide customers with competence for advanced transport including liquefied CO2 loading and offloading onshore and offshore.
“Through KNCC we will combine our extensive knowledge of ship operation and management to achieve the early realization of not only small and medium-sized vessels but also large liquefied CO2 vessel operations. The establishment of this joint venture will be an important foothold for participation in the CCUS value chain,” the duo explained.
“Establishing KNCC enables NYK to offer marine transportation of liquefied CO2 which is an important milestone for reaching the targets set out in the Paris Agreement, and in line with NYK’s strategy and green business plan,” Svein Steimler , president and CEO of NYK Group Europe, commented.
“We are pleased to have developed a solution that is key to reach the ambitious climate goals. Combining the PCO2 technology with our … competence and experience within offshore operations enables us to offer a safe and regular marine transportation of liquefied CO2 to existing and new customers,” Trygve Seglem , owner and president of the Knutsen Group, said.
Steimler and Seglem will be the chair and vice-chair of the Board of Directors of KNCC. Anders Lepsøe has been appointed chief executive officer of the company.
In November 2021, NYK also teamed up with compatriot shipbuilder Mitsubishi Shipbuilding to develop a large-scale liquefied CO2 carrier. The two companies will participate in the carbon dioxide capture, utilization, and storage value chain based on the development of LCO2 carriers.