- APAC could require nearly 80 CO₂ carriers and over 90 storage sites by 2055 to support its CCUS ambitions.
- Japan and Korea are expected to lead regional demand, with offshore infrastructure needs comparable to Australia’s LNG sector.
- Long-term cost reductions and international cooperation are key to scaling APAC’s carbon shipping network.
The Asia-Pacific (APAC) region is emerging as the future leader in the global carbon shipping sector, according to energy consultancy Xodus. A new CCUS report titled ‘Forecasting the APAC CCUS Infrastructure’, developed in collaboration with Subsea7, projects that the region will require close to 80 specialized vessels for interregional CO₂ transport by 2055. This demand is driven by the significant geographic distances between industrial CO₂ emitters and viable offshore storage locations, according to Offshore Energy.
Infrastructure Needs to Support Growing CCUS Deployment
To meet its future CO₂ sequestration goals, APAC may need more than 90 storage sites and 8,000 kilometers of pipelines. The report points to Japan and South Korea as key markets where CCUS demand will be highest. Although these nations currently lack major oil and gas production, their storage requirements could necessitate a massive offshore industry, on par with the LNG infrastructure found in north-west Australia.
Cost Efficiencies from LNG-Linked Projects and Long-Term Scaling
The study finds that CCUS initiatives tied to LNG facilities may reduce costs by 10–15%, effectively decreasing CO₂ transport distances by over 3,000 kilometers. While APAC’s early CCUS shipping projects are expected to be costly due to long offshore routes, Xodus anticipates that transport and storage expenses will decline over time as infrastructure matures and competition lowers tariffs.
CCUS: A Strategic Pathway to Industrial Decarbonization
Simon Allison, Vice President APAC at Xodus, described carbon capture and storage as one of the fastest, most viable solutions to decarbonize hard-to-abate industries, including cement, steel, and fossil-fuel power. He emphasized that while the region currently trails the North Sea in commercial-scale CCUS development, APAC’s operational experience with CO₂ re-injection and large emissions footprint positions it as a future global hub.
Shipping to Play Central Role as Domestic Storage Lags
Unlike Europe—where emitters often lie close to storage hubs connected via pipeline—APAC’s CCUS landscape will initially rely heavily on long-distance shipping. The report notes that early projects will involve international emitters, with local demand forming a smaller share. China and India, however, are expected to prioritize domestic storage strategies.
Scalable Fleet Growth and Competitive Market Potential
The report estimates that constructing six CO₂ carriers annually over 15 years would be sufficient to meet projected needs by 2055, equivalent to 20% of Asia’s current LNG carrier fleet in tonnage. With the region’s dense industrial activity expected to keep capture and onshore logistics costs low, CCUS is poised to become a competitive decarbonization pathway.
Call for Cross-Border Collaboration and Regulatory Harmonization
Olivier Mette, Xodus’ Global Advisory Director, underscored the role of international cooperation and infrastructure standardization in unlocking APAC’s potential. He noted that despite the challenge of emitter–store mismatches—often spanning over 5,000 kilometers—costs will fall as infrastructure scales and new players enter the market. Regulatory alignment and shipping readiness will be crucial to positioning APAC as a global leader in efficient, large-scale CCUS deployment.
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Source: Offshore Energy
