Shipowners and investors assess the risk of investing in the shipping link of the nascent industry of the collection and storage of waste CO2
CO2 is a waste product and the methods and investment to ship captured CO2 beyond the distances economically viable for pipelines are being assessed by shipowners.
Those shipping companies that have taken a step into the realm of CO2 shipping highlighted the challenges and strategies they are pursuing to achieve a sustainable and efficient value chain at a recent conference.
Passing on their learnings from involvement in the early stages of CO2 shipping were Navigator Gas, Knutsen NYK Carbon Carriers, Capital Product Partners L.P., and K Line LNG Shipping (UK) Ltd.
Speaking at Riviera’s CO2 Shipping & Terminals Conference 2024 (held at the Waldorf Hilton in London on 18 June 2024 in association with Societe Generale), Navigator Gas head of marine projects Carsten Manniche captured the essence of the industry’s primary challenge: “This is a chain solution and I think it is understood, that we have to transport and store CO2 at the lowest price, with the lowest CO2 footprint. That is really the challenge.”
His statement underscores the need for a cohesive approach that minimises both costs and environmental impacts.
Mr Manniche noted that the entire value chain, from emission sources to storage, must operate in harmony to develop efficient and scalable solutions.
Navigator Gas is addressing these challenges by focusing on technological innovations and fostering close collaborations with various stakeholders.
Safety and reliability emerged as critical themes and Knutsen NYK Carbon Carriers chairman Anders Lepsøe stressed the importance of these factors, stating, “If we have one incident, the whole industry will face a serious setback that will delay this process for years. Respect and seriousness are crucial in handling CO2.”
Mr Lepsøe’s remarks highlight the potential repercussions of operational mishaps and the need for meticulous risk management
Knutsen NYK’s approach includes rigorous crew training and the development of specialised equipment to handle CO2 safely, ensuring that the transportation process is secure and reliable.
Capital Product Partners chief commercial officer Spyros Leoussis, stressed the need for industry standardisation to achieve efficiency and scalability, “My view is that we need to standardise (CO2) shipping if it is to become an industry and to actually be commoditised.”
He added, “You can see that shipping as an industry has been successful when standardisation has been achieved.”
K Line LNG Shipping (UK) Ltd managing director Kiyoshi Sekiya highlighted the challenges of coordination and long-distance logistics in CO2 transportation.
“We need to come up with partnerships with local entities experienced in logistics. The limited storage capacity in regions like Japan presents significant challenges, and we must develop robust shipping networks to support CCS projects,” Mr Sekiya noted
The technical and economic challenges in developing cost-effective CO2 carrier designs were also a major focus and companies are experimenting with various tank materials and configurations to find the optimal balance between cost and performance.
Navigator Gas, for instance, has explored different tank pressures and materials to identify the most suitable solutions for CO2 carriage.
Additionally, navigating the regulatory landscape and securing financial investments for fleet development were identified as key hurdles.
Mr Manniche highlighted the importance of working closely with emitters, storage facilities, and other stakeholders to ensure that the entire process is streamlined and effective.
This collaborative approach is not only beneficial for technological advancement but also crucial for gaining the trust and support of regulators and financiers.
source: Riviera News
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