Japanese players to set up marketing company for liquefied CO2 shipping

Japanese companies Kawasaki Kisen Kaisha (K Line) and Nippon Gas Line (NGL) have entered an agreement to establish a marketing company for the purpose of providing integrated liquefied CO2 transportation service for carbon dioxide capture and storage (CCS) projects over the boundaries.

The collaboration will provide liquefied CO2 transportation services by leveraging both parties’ knowledge and experience, K Line said, adding that both companies will contribute to the realization of a carbon-neutral society through CO2 shipping. 

According to K Line, the Japanese government is advancing the development of a business environment to initiate CCS projects by 2030, with the plan to scale up the CCS value chain and achieve cost reduction by introducing a hub and cluster structure.

In relation to its development, K Line revealed that cross-border CO2 transportation and the establishment of an integrated transportation system by a combination of various-sized liquefied CO2 carriers has been studied.

K Line further noted that the company is promoting a variety of initiatives to support the low-carbon and carbon-free journey of its operations as well as the society in accordance with its long-term environmental policy K Line Environmental Vision 2050.

The company claimed that it will start the operation of liquefied CO2 carriers for Northern Lights, the “world’s first full-scale CCS project” this year, adding that it has set up a dedicated team for ship management of liquefied CO2 carrier and is working to realize safe and reliable operation.

To remind, K Line signed charter deals for three LCO2 carriers under the Northern Lights project, a joint venture involving energy giants Shell, Equinor and TotalEnergies. The newbuilds, which will combine LNG-powered propulsion with wind-assisted technology and air lubrication, are being built at China’s Dalian Shipbuilding Offshore (DSOC).

As for Nippon Gas Line, when it comes to CCS projects in particular, K Line pointed out that Nippon is undertaking operation and ship management of a liquefied CO2 carrier and developing operation and cargo handling technology for low-temperature and low-pressure liquefied CO2.