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Writer's pictureTseles John

CCS under the micro and macroeconomic view


CCS under the microeconomic and macroeconomic view

Carbon capture and storage is seen by many as an alternative technology to lower carbon emissions and, at a macro level, a business opportunity to ship carbon as a waste product


Starting with carbon capture and storage (CCS) on ships, there are several streams of technology under development, but the regulatory status is unclear. The status of CCS will become clearer following the latest Marine Environment Protection Committee (MEPC) meeting in April 2024, where members agreed to ask GESAMP (Joint Group of Experts on the Scientific Aspects of Marine Environmental Protection) to consider onboard CCS with an intersessional correspondence group formed to develop steps toward a regulatory framework.


However, the status of onboard CCS is not clear under the current EU legislation (EU ETS, FuelEU and so on).


There are several CCS technologies under development. One is being developed by a trio of Japanese companies, which have inked a memorandum of understanding (MoU) agreeing to study the optimisation of CO2 liquefaction storage.

“This study aims to optimise the CO2 transport sysem by utilising the elevated pressure

JX Nippon Oil & Gas Exploration Corp, Nippon Yusen Kabushiki Kaisha (NYK) Group and its affiliate Knutsen NYK Carbon Carriers (KNCC) will study CO2 liquefaction storage using KNCC’s proprietary technology cargo tank cylinders (CTC).


This study aims to optimise the CO2 transport system using CTC by utilising the characteristics of the elevated pressure method, which stores and transports liquefied CO2 at higher temperatures and pressures than the low-pressure and medium-pressure methods.


The partners said they hope the study can help solve the problems in the carbon capture, utilisation and storage (CCUS) value chain, such as capital investment, energy consumption and environmental impact. The three companies will conduct optimisation verification by the latter half of the year using CTC’s demonstration facility ’test rig’ owned by KNCC in Norway and, based on the verification results, will study the possibility of social implementation in concrete terms.


Another Japanese effort involves the retrofit of CCS on a container ship. Japanese classification society ClassNK has granted its Shipboard Carbon dioxide Capture and Storage-Full (SCCS-Full) class notation to Ever Top, a neoPanamax container vessel owned by Evergreen.


The notation signifies the vessel is now equipped with onboard CCS systems, marking it the world’s first neoPanamax container vessel to be retrofitted with such systems. The CCS systems, designed and developed by Shanghai Marine Diesel Engine Research Institute, were installed at Huarun Dadong Dockyard Co, Ltd.


ClassNK reviewed the system components and the installation plan, aligning with its comprehensive Guidelines for Shipboard CO2 Capture and Storage Systems. The risk assessment, hazard identification and the onsite installation process were also examined. Following confirmation of compliance with the relevant requirements, the SCCS-Full notation was awarded to the vessel.


ClassNK corporate officer/director of plan approval and technical solution division, Masaki Matsunaga, said: “As the crucial action of first movers, ClassNK respects the ambitious and practical application of CCS systems taken by Evergreen and involved parties to advance greenhouse gas abatement technology implementation. It is our honour to be a part of this collaboration, and we are committed to supporting proactive initiatives toward decarbonisation by providing appropriate standards, surveys and certifications.”


At the other end of the scale is the design and development of vessels to carry waste CO2 as a cargo. The most prominent project, Northern Lights – a joint venture between energy giants Equinor, Shell and TotalEnergies – placed its initial two-vessel order in 2021 for two dedicated liquefied carbon dioxide (LCO2) carriers.


The order formed part of the first phase of Northern Lights’ CO2 transport and storage infrastructure development in the North Sea, and the vessels were scheduled for delivery in mid-2024.

"Our two first ships have officially been launched and successfully transferred from the drydock to the harbour," the Northern Lights JV posted on LinkedIn. "Thank you to everyone involved. We look forward to welcoming the ships to Norway later this year."



Both 130-m Northen Lights sister vessels at
Both 130-m sister vessels at the shipyard. Credits : Northen Lights


Both 130-m sister vessels will have a cargo capacity of 7,500 m3. Built specifically to carry LCO2, the vessels have purpose-built pressurised cargo tanks and will be fuelled by LNG. The vessels will also feature a wind-assisted propulsion system and air lubrication with a target to reduce carbon intensity by around 34% compared with conventional systems.


The ships will be registered in Norway, classed by DNV and operated by Northern Lights under the Norwegian flag. Once in operation, the ships will load captured and liquefied CO2 from European emitters and transport it to the Northern Lights receiving terminal in Øygarden, western Norway.


The CO2 volumes will be measured and reported throughout the value chain. Measurements will be independently verified and the necessary documentation provided to regulators and government officials. The Northern Lights JV has said that it has completed what it called "the final major milestone for the construction of the Northern Lights CO2 receiving facilities." This involved the pulling in the pipeline, which connects the onshore facilities to the offshore storage infrastructure in the North Sea.






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