Board member of the Union of Greek Shipowners and ICS, John Lyras, says carbon capture technology is "the least inflationary solution" for shipowners to become greener
“Carbon capture technology is still a taboo within the shipping industry, and it shouldn’t be,” former president of the Union of Greek Shipowners (UGS), John C Lyras, told Riviera.
In an interview on the sidelines of the Posidonia 2024 exhibition in early June, Mr Lyras, now a member of the Board in both UGS and International Chamber of Shipping (ICS), described carbon capture as the "least inflationary solution" among the options the sector is considering for ’greener’ operations.
Mr Lyras emphasised carbon capture technology could reduce both fuel and transport costs, thereby mitigating the impact of the green transition on consumers.
"The industry hasn’t come up with a zero-carbon fuel yet, and I am not optimistic about that happening soon. Until then, we must explore different technologies that can improve our fleets’ environmental footprint," he stated, highlighting carbon capture as a promising solution.
Mr Lyras fired back at the critics of the technology, who argue that carbon capture doesn’t shift the industry away from fossil fuels. “Many middle-aged vessels still rely on conventional fuel. By implementing carbon capture, these vessels can remain competitive and continue operating while reducing their emissions” he said.
Discussing alternative fuels, he noted the potential of nuclear propulsion, though he acknowledged its current developmental stage and high capital costs. "Building a nuclear-powered vessel would require two to three times the investment of today’s newbuildings," he added.
Greeks go big on carbon capture
Carbon capture – along with ammonia – was a hot topic in this year’s Posidonia exhibition. Mr Lyras’ views reflect a broader trend among Greek shipowners, who are increasingly investing in R&D projects or directly installing carbon capture systems on their vessels.
Last week, Evangelos Marinakis-backed Capital Gas signed a letter of intent with Erma First and Babcock with the aim to install a carbon capture and storage system (CCS) on board four new LCO2 carriers. “We are developing advanced carbon capture technology to enhance the environmental sustainability of these ships,” said Capital Gas managing director Miltos Zisis.
Greek technology provider Erma First has also partnered with Neptune Group, led by UGS president Melina Travlos, on a dedicated conversion pilot project, focused on the onboard capture plant on a roro ship.
Another big Greek owner, chief executive of Star Bulk Carriers Petros Pappas, revealed during Posidonia it is engaging with CCS technology, believing it will be part of the mix towards a more sustainable future. “It is a promising solution for the fleet that still burns fuel oil” noted technical director of the bulk carrier giant, Fotis Belexis, during a Posidonia conference panel.
President and chief executive of Danaos Corp, Dr John Coustas, also noted during the exhibition that CCS can be of great assistance when trying to reduce the environmental footprint of the industry, at least in the medium-term. “We are investing in research projects to reach a solution that won’t demand an entire supply chain”, he noted.
Peter Livanos-owned Ecolog is also a pioneer in the CO2 supply chain, being in the process of building a fleet of 60 LCO2 carriers, with import and export terminals. The project aims to transport around 50M tonnes of CO2 per year by 2035.
The regulatory framework
Despite the technological advances, the industry still lacks a comprehensive legislative framework.
“Unfortunately, this won’t happen until Q2 2025” said Bureau Veritas technical director, SEEBA Zone, John Kokarakis. “There is a working group that has been formed within IMO tasked to develop a work plan on the implementation of a regulatory framework for onboard carbon capture systems. We hope they will solve the difficult problem of the verification” he said, adding MEPC 83 will probably provide some answers.
“There are different aspects we have to consider both on the regulatory and the infrastructure side. But we do believe that looking ahead, carbon capture will be part of the transition. It is not easy to estimate, but in the next 5-10 years, it will be a reality within the industry,” said DNV managing director, maritime advisory, Morten Lerø.
The supply chain
At Posidonia, DNV presented a white paper that provided a comprehensive overview of all key considerations for deciding on onboard carbon capture.
One key aspect is the supply chain. “Onboard carbon capture systems will depend on a developed infrastructure for wider carbon capture, utilisation and storage, as such capture will be the starting point of a long logistics chain,” DNV stated.
The five steps of this value chain are: onboard capture, onboard storage, offloading, transport and permanent storage or utilisation.
According to DNV, by April 2024, 35 carbon storage projects were in operation worldwide with a total storage capacity of 37M tonnes per annum, most of them related to natural gas processing and enhanced oil recovery.
Between now and 2050, the carbon storage capacity must be more than 100 times higher than the projected capacity for CO2 storage to reach net-zero by mid-century, the research noted, quoting IRENA data.
“The forecast global CCS capacity in net-zero policies’ 2050 scenarios ranges from 4,000 to 8,400M of tonnes of CO2 equivalent (MtCO2) stored annually, part of which could be made available for CO2 captured from shipping. In comparison, shipping consumes about 3% of the world’s energy and emits around 880 MtCO2 per year,” DNV said.
source: rivieranews