K Line pens charter deal for 3rd LCO2 carrier
Japanese shipping heavyweight Kawasaki Kisen Kaisha (K Line) has signed bare boat charter and time charter contracts with Northern Lights JV DA for the management of the third CO2 ship.
K Line has already signed contracts for managing the first two 7,500 m3 liquefied CO2 ships scheduled for delivery later this year. In total, Northern Lights has four CO2 ships under construction.
The management services for the three vessels will be carried out by the company’s London-based subsidiary K Line LNG Shipping (UK) Ltd.
Once delivered, the vessels will be employed on the transportation of liquefied CO2 from Northern Lights customers based in Norway, Denmark, and the Netherlands, to Northern Lights’ CO2 receiving terminal in Øygarden, Norway, from where the CO2 will be injected into the offshore reservoir for permanent storage.
“We are pleased to expand our partnership with K Line, a ship operator with extensive experience in liquefied gas transport and a strong safety and environmental track record. These ships will be shuttling between our customers in Northwest Europe and the Northern Lights’ onshore facilities, each transporting over 400,000 tonnes CO2 annually”, said Børre Jacobsen, Managing Director of Northern Lights.
The two first Northern Lights ships are currently 75% completed and will be delivered later this year.
K Line LNG Shipping (UK) Ltd. is working on an operation manual and commissioning protocol and cooperating with relevant parties such as terminal operators and port authorities. It has also launched a crew training program to ensure the safe and reliable operation of the ships, which will be the first of their kind.
“We have already set up a dedicated team for CO2 ship management in “K” LINE LNG Shipping (UK) Ltd. in London for the first and second vessels and believe that the preparation for prior vessels will be further accumulated with the additional vessel in the fleet. Having the experience of building up the team and operational procedure, we are determined to contribute to the world’s first CCS project by Northern Lights,” said Yukikazu Myochin, President and CEO of K LINE.
“Our investment in these custom-built ships reflects our commitment to deliver safe, reliable, and sustainable CO2 transport services. The recent contracts to build and operate the third and fourth ships signify an increase in Northern Lights’ shipping capacity and reinforce our pioneering role in CO2 transport,” said Jacobsen.
In December 2023, Northern Lights placed the order for a fourth CO2 ship, sister to the developing ones currently under construction at Dalian Shipbuilding Offshore Co., Ltd (DSOC). With these four ships, Northern Lights will have the world’s largest dedicated CO2 shipping fleet.
The LNG-powered CO2 carriers will be fitted with wind-assisted propulsion and are expected to have around 34% lower carbon footprint compared to conventional ships running on marine fuel.