Japanese players to set up marketing company for liquefied CO2 shipping

Japanese companies Kawasaki Kisen Kaisha (K Line) and Nippon Gas Line (NGL) have entered an agreement to establish a marketing company for the purpose of providing integrated liquefied CO2 transportation service for carbon dioxide capture and storage (CCS) projects over the boundaries.

Courtesy of K Line

The collaboration will provide liquefied CO2 transportation services by leveraging both parties’ knowledge and experience, K Line said, adding that both companies will contribute to the realization of a carbon-neutral society through CO2 shipping. 

According to K Line, the Japanese government is advancing the development of a business environment to initiate CCS projects by 2030, with the plan to scale up the CCS value chain and achieve cost reduction by introducing a hub and cluster structure.

In relation to its development, K Line revealed that cross-border CO2 transportation and the establishment of an integrated transportation system by a combination of various-sized liquefied CO2 carriers has been studied.

K Line further noted that the company is promoting a variety of initiatives to support the low-carbon and carbon-free journey of its operations as well as the society in accordance with its long-term environmental policy K Line Environmental Vision 2050.

The company claimed that it will start the operation of liquefied CO2 carriers for Northern Lights, the “world’s first full-scale CCS project” this year, adding that it has set up a dedicated team for ship management of liquefied CO2 carrier and is working to realize safe and reliable operation.

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To remind, K Line signed charter deals for three LCO2 carriers under the Northern Lights project, a joint venture involving energy giants Shell, Equinor and TotalEnergies. The newbuilds, which will combine LNG-powered propulsion with wind-assisted technology and air lubrication, are being built at China’s Dalian Shipbuilding Offshore (DSOC).

As for Nippon Gas Line, when it comes to CCS projects in particular, K Line pointed out that Nippon is undertaking operation and ship management of a liquefied CO2 carrier and developing operation and cargo handling technology for low-temperature and low-pressure liquefied CO2.