Liquefied Natural Gas (LNG) is increasingly vital in the global energy landscape, serving a dual purpose: enhancing energy security and significantly contributing to emissions reduction programs.
Significant Advancement
US-listed Capital Clean Energy Carriers is pioneering a significant advancement in carbon shipping technology with its order of four ammonia-ready LCO₂ low-pressure (LP) carriers. These 22,000 cubic meter (cbm) vessels, being built at HD Korea Shipbuilding & Offshore Engineering’s (HD KSOE) HD Hyundai Mipo and classed by LR (Lloyd’s Register), represent a crucial step forward for the nascent CO₂ maritime supply chain.
The first of these four groundbreaking vessels was floated out in April 2025. This event marks a “significant breakthrough” because the low-pressure design, a first of its kind for LCO₂ carriers of this size, offers enhanced cargo capacity, improved cost-efficiency, and greater operational reliability. This is a critical development, as carbon avoidance strategies are typically associated with increased costs. By demonstrating a cost-effective solution for CO₂ transport, these vessels present a compelling value proposition.
According to Pano Mitrou, LR’s Global Gas Segment Director, these carriers also represent a broader breakthrough for the LCO₂ supply chain. He emphasizes that all projections indicate carbon capture as an important component in achieving net-zero emissions by 2050. To meet the anticipated demand in CO₂ trade, the maritime supply chain for this cargo will need to evolve from simple “A to B” point-to-point transfers to a more “live and flexible” trading system. This flexibility, he asserts, will enable a “globally unified, standardised and healthy LCO₂ trade within shipping” that can adapt to market requirements and scale effectively.
The development of low-pressure (LP) LCO₂ carriers by HD KSOE’s HD Hyundai Mipo marks a significant evolution in carbon shipping, offering distinct advantages over the limited number of medium-pressure (MP) systems currently in operation.
Challenges with Medium-Pressure Systems
As explained by Dongjin Lee, Executive Vice President at HD Hyundai Mipo, existing MP systems for LCO₂ transport operate at higher pressures (19 bar) and warmer temperatures (-35°C). While technically sound, these systems face limitations in spatial efficiency and incur higher costs due to the specialized materials required, particularly when considering the large-scale transport needs of the burgeoning Carbon Capture and Storage (CCS) industry.
Advantages of Low-Pressure Design: In contrast, HD Hyundai Mipo’s LP LCO₂ cargo tanks are engineered to operate at approximately 8 bar and a colder temperature of -55°C. This lower pressure regime enables several key benefits:
- Enhanced Cargo Capacity: The LP design allows for a special tank configuration known as a bi-lobe design. This innovative structure overlaps two cylindrical tanks into a single integrated unit, significantly improving cargo intake efficiency and maximizing the volume of CO₂ that can be transported. This bi-lobe configuration would be structurally challenging and potentially unsafe in a medium-pressure vessel due to higher stress concentrations, but it becomes feasible and safe under LP conditions.
- Cost-Efficiency and Operational Reliability: By operating at lower pressures and optimizing tank design, the LP vessels offer improved cost-efficiency and enhanced operational reliability, addressing critical needs for the large-scale deployment of CO₂ transport.
Market Drivers
As industries globally intensify their efforts to reduce carbon emissions, the demand for liquefied CO₂ (LCO₂) carriers is projected to grow significantly. This emerging sector is seen as a crucial component in achieving net-zero emissions by 2050.
Current Landscape and Future Projections: While the LCO₂ transport sector is relatively small today, it is poised for substantial development. Currently, there are seven LCO₂ carriers in operation, with seven more on order. Notably, this order book includes four 22,000 cbm low-pressure (LP) multi-gas carriers being built to LR class for Capital Clean Energy Carriers, with the first floated out in April 2025.
The Need for Flexible Trading Patterns: Pano Mitrou, LR’s Global Gas Segment Director, emphasizes the importance of newbuild projects fostering flexible trades in volume. He notes that as the only carbon-negating chain, the industry must transition from traditional “project-based shipping patterns” to more “flexible trading patterns.” This requires a fundamental rethinking of the shipping supply chain as an adaptable and integrated part of the overall carbon supply chain.
Mitrou highlights that a 22,000 cbm LP LCO₂ carrier could become the “work-horse of the maritime LCO₂ supply chain.” He views it as a promising investment due to its lower capital and operational expenditures and its ability to access a broader range of terminals. These multi-gas capabilities (able to carry LPG and ammonia in addition to LCO2) also enhance their commercial viability, allowing operators to switch between cargoes based on market demand.
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Source: Lloyd’s Register
