Big names in Greek shipping are in exploratory discussions with Chinese shipyards about the specifications and costs of building CO2 carriers, but have not yet placed orders, due to a lack of adequate plans and equipment.
One of the companies directly interested in building CO2 carriers is Peter Libanos (Ecolog), which was incorporated in 2022 with the aim of building a fleet of 60 ships along with connected import and export terminals, towards carbon capture and storage technologies.
Photo: Peter Livanos - Ecolog
Gibson Shipbrokers states CCS technology is "hot"
However, shipping observers insist on the need to immediately build CO2 transport ships, which will serve the emerging carbon capture and storage market.
In particular, as Gibson Shipbrokers states in its latest report, interest in carbon capture technology is "hot", as many new projects are under construction, while design studies and feasibility work are being carried out for future projects.
In fact, in Europe most projects will be offshore, under the North Sea, which means that shipping demand will be high, either for direct injection via floating infrastructure or for transport to land-based facilities across Europe, where submarine pipelines will transport sequestered CO2 to depleted oil and gas fields.
The challenge today for this technology is the lack of CO2 reception and storage infrastructure, as well as ships that will be able to transport the quantities. Gibsons warns that if CO2 transport steamers are not placed on order immediately, there will be no tonnage to serve the above projects which are expected to receive the "green light" soon.
To date, there are only two CO2 carriers on order, which relate to the Northern Lights project in the North Sea, which will start in 2024. require tonnage by 2026, they may face a shortage of specialized vessels if relevant orders are not placed soon," Gibsons points out.
It is recalled that the massive orders of container and LNG transport ships in the previous two years and of tankers recently, create "sold-out" conditions at the shipyards, which offer delivery times from the end of 2026 and the beginning of 2027.
In this context, Gibsons analysts estimate that the current conditions create opportunities to order CO2 carriers, without, of course, being able to ignore the risk of an incorrect size or design. "However," they continue, "as shipyards explore vessel designs that can carry ammonia and LPG as well as CO2, it may not be long before shipowners will be able to mitigate risk, through cargo flexibility, and enter this growing market to improve the ESG identity of their fleets.”
The "positive" European initiative
An important step to promote carbon capture and storage technologies was recently made by the European Union, in its proposal for a zero emission industry.
The Commission focuses on accelerating CO2 sequestration. In particular, the proposed legislation aims for the annual injection capacity of 50 million tons of CO2 at strategic locations in the EU. by 2030, with proportional contributions from the Union's oil and gas producers.