KN, LS, MOL to develop LCO2 and hydrogen project in Klaipeda
Klaipedos Nafta (KN), Larvik Shipping (LS), and Mitsui O.S.K. Lines (MOL) have reached an agreement to carry out a feasibility study to develop liquefied CO2 (LCO2) loading facilities at KN’s infrastructure in Klaipeda, Lithuania.
The companies acknowledge the potential for carbon capture, utilisation, and storage (CCUS). The concept is to develop a LCO2 logistics and value chain from Lithuania and potentially the Baltic region with Klaipeda seaport at the centre.
Lithuania’s energy and climate action plan for 2021-2030 identified carbon capture as a promising area that requires further investigation to seek the best possible application. Insights of carbon management gained in the feasibility study may also help accelerate the clean hydrogen production from fossil fuels.
Klaipedos Nafta, as an oil and LNG terminal operator company, has already recognised the importance and synergy of hydrogen and carbon markets, and during 2020 participated in the formation of the Lithuanian Hydrogen Platform.
The feasibility study’s main goal will be to identify optimised design and configuration to export CO2 to one or more sequestration facilities within Europe. It also includes the possibility to produce blue hydrogen as an important and necessary solution to reach zero-emission economy.
The study will be conducted in patnership with Norwegian ship management company Larvik Shipping (LS) and Japanese multi modal marine transport company MOL.
Klaipedos Nafta covers the onshore and terminal handling part of the project. LS and MOL make contribution to bring efficient and feasible marine logistics solution.
Larvik Shipping, which has more than 30 years track record in LCO2 marine transportation, accepted equity from MOL on 19 March 2021. Both companies now work closely to accelerate LCO2 business together with MOL’s experience in transportation of various types of cargoes on world-wide basis.
The companies intend to cover the major logistics part of the entire CCUS value chain. CCUS is seen as a powerful technological enabler on the path towards sustainable energy future, widely seen as critical to achieve net-zero economy by 2050.