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'Massive investment’ needed in global LCO2 carrier fleet


'Massive investment’ needed in global LCO2 carrier fleet
Photo: Johan Tutturen (Clarksons)

To reach net zero by 2050, at least 6 gigatonnes per annum (gta) of CO2 will need to be captured and stored, according to IEA, and 10-20% of those volumes could be transported by ship, according to a leading shipbroker.

“But the project pipeline is not developing fast enough; we definitely need to speed up,” said Clarksons green transition group senior technical advisor, Johan P Tutturen.


Speaking at Riviera’s CO2 Shipping, Terminals & CCS Conference, Americas 2024 in Houston on 16 September, Mr Tutturen highlighted the critical role maritime shipping will play in the build out of the carbon capture, utilisation and storage value chain.


There are just four ships in the global fleet trading CO2, the largest of which has a capacity of 1,800 m3. Two 7,500-m3 liquefied CO2 (LCO2) carrier newbuilds for Norway’s Northern Lights carbon capture and storage project will join the fleet this year, the first of which is undergoing sea trials. Two other sister ships are on order at China’s Dalian Shipbuilding.


These ships will be managed by K Line LNG Shipping (UK), and will transport liquefied CO2 from Norway, Denmark and the Netherlands to Northern Lights’ receiving terminal in Øygarden, Norway. The CO2 will be injected from the terminal to an offshore reservoir for permanent storage.


Northern Lights will hold a ceremony on 26 September, marking the completion of its CO2 receiving facilities. The first phase of development will have the capacity to permanently store 1.5M tonnes per annum of CO2.


Mr Tutturen said the global fleet of LCO2 carriers needed to transport CO2 will need to be dramatically scaled up, requiring “massive investment.”

Using the DNV Energy Transition Outlook (2023) as a starting point to calculate the number of Northern Lights-equivalent-sized ships along with some assumptions, the global fleet will grow to 41 ships by 2030, 124 ships by 2040 and 270 ships by 2050. But using the IEA data for carbon capture and storage to reach net zero to calculate the number of Northern Lights equivalent-sized ships and the same assumptions, potential demand for LCO2 carriers could approach 2,500 ships by 2050, according to Mr Tutturen.


"While this is not a forecast by Clarksons, it highlights the potential importance of LCO2 shipping to reach decarbonisation targets," Mr Tutturen stated.


Larger LCO2 carriers are being ordered. Greek shipowner Capital Clean Energy Carriers Corp is building four 22,000-m3 multi-gas vessels that will have three times the capacity of the Northern Lights ships. Altera Infrastructure is looking at designs for 30,000-m3 and 50,000-m3 LCO2 shuttle tankers for its Stella Maris CCS project. Other larger LCO2 carrier design concepts are being developed by Asian shipyards.


According to the International Energy Agency, CO2 per annum to be captured and stored will have to grow to 6 gta in 2050, while IRENA expects even more robust levels will be needed to reach net zero. The international renewable energy agency says 8 gta of carbon will be needed to be captured and stored by 2050 – a dramatic ramp up from the current level of 0.04 gta.


Through a series of presentations and panel discussions, CO2 Shipping, Terminals & CCS Conference, Americas 2024 examined the technical, regulatory and funding challenges of scaling up the carbon capture value chain. The conference was produced in association with Norton Rose Fulbright, with gold sponsorship support from DNV.


source: riviera news





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