Seatrium executive vice president, technology and new product development, Aziz Merchant (foto), explained why demand for CO2 transport is increasing in Asia during his opening remarks at Riviera Maritime Media’s CO2 Shipping & Carbon Capture and Storage (CCS) Conference, Asia, held in association with DNV the previous September at the Conrad Centennial Hotel in Singapore.
"Global carbon emissions reduction is a worldwide priority. Carbon capture, transport and storage (CCTS) has incredible potential to help us reach carbon neutrality. Without CCTS, it will be practically impossible to limit global warming to 1.5°C, as the Intergovernmental Panel on Climate Change report makes clear.
Asia will need to capture and utilise or store between 300 and 640M tonnes of carbon dioxide per year by 2050 to meet its climate goals. While North America and Europe currently lead in carbon capture and storage projects, Asia holds significant potential. At present, Asia’s planned CCS projects represent less than 10% of the global project pipeline, amounting to just 19.2M tonnes of CO2 per year. However, to meet sustainable development targets, Asia must collectively reduce CO2 emissions by 13Bn tonnes between 2025 and 2040. The region has substantial storage potential, including oil and gas fields, field-scale saline formations, and basin-scale saline formations, with Indonesia and Malaysia leading in CO2 storage capacity.
The demand for CO2 carriers in Asia will rise in coming years, driven by several factors reflecting the region’s commitment to addressing climate change and promoting sustainable practices. As a major CO2 emitter, Asia has recognised the importance of carbon capture and storage technologies for reducing greenhouse gas emissions.
Here are some key reasons contributing to the increasing demand for CO2 carriers in Asia:
Rapid economic growth: several Asian countries have experienced rapid economic expansion, resulting in increased CO2 emissions. This growing output highlights the need to implement carbon capture and transport to suitable storage sites to comply with emissions reduction objectives.
Government policies and initiatives: Asian governments have started implementing policies and initiatives to address climate change and reduce greenhouse gases. These efforts include support for CCS projects, raising demand for CO2 carriers to transport captured carbon dioxide.
Scaling up CCS projects: Asia has been expanding its CCS projects across various industries. As these initiatives grow, more CO2 carriers will be needed to move captured CO2 from source to storage.
International collaboration: Asia is collaborating with international partners to share knowledge and resources for CCS deployment. Such co-operation involves exchanging captured CO2 between nations, further driving regional carrier demand.
Industrial applications: CO2 is utilised for carbonation, refrigeration and preservation processes in various industries, spurring demand for carriers to enable these applications.
Technological advancements: as carbon capture and transport technologies improve in efficiency and cost-effectiveness, implementation becomes more viable economically. According to the Global CCS Institute, the CCS market will expand more than 30% annually as decarbonisation policies accelerate worldwide.
Major Asian shipyards are developing CO2 vessel designs ranging from 4,500 to 70,000 m3 capacity. However, challenges remain around carbon pricing, cross-border regulations and infrastructure investment. Ultimately, realising CCTS’s immense potential in Asia requires embracing cross-border co-operation and robust policy frameworks. Through collaboration, we can foster innovation and achieve our decarbonisation goals. At Seatrium, we are committed to shaping the CO2 value chain’s future. Our efforts, together with other stakeholders, will significantly advance carbon capture and storage in Singapore and beyond."
source: rivieramm.com
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