Shanghai Achieves World’s First Ship-To-Ship CO₂ Transfer

In a global first, Shanghai has successfully carried out a ship-to-ship transfer of liquefied carbon dioxide captured from a large container ship using an Onboard Carbon Capture and Storage (OCCS) system, marking a pivotal moment in maritime emissions reduction. This innovation showcases a full-cycle solution—from onboard capture to storage, transfer, and reuse—positioning Shanghai at the forefront of practical maritime decarbonisation.

A Closed-Loop Carbon Capture Ecosystem

Developed by the Shanghai Marine Diesel Engine Research Institute, part of the China State Shipbuilding Corporation, the OCCS system enabled the carbon capture onboard a 14,000-TEU container ship. The captured CO₂ was then transferred to a dedicated liquefied CO₂ carrier at Yangshan Port.

This achievement completes the entire carbon loop:

• Capture onboard the vessel

• Storage in liquid form

• Ship-to-ship transfer at sea

• Transport to specialized terminals

• Reuse in industrial applications

Shanghai now becomes the first city to establish such a fully integrated ecosystem for maritime carbon emissions.

Cost-Effective and Profitable Emissions Reduction

With regulatory pressure mounting from the IMO, shipowners often face expensive options like methanol or ammonia retrofits. However, the Shanghai-developed OCCS system provides a more affordable and profitable path:

• Captures 80%+ of CO₂ at 99.9% purity

• Retrofit cost: ~$10 million (half the cost of green-fuel conversions)

• Annual CO₂ resale value: Up to $8 million

As Su Yi, general manager of the institute’s Environmental Equipment Division, explained, OCCS not only reduces emissions but also extends vessel lifespan and creates a revenue stream from what was once waste.

Ship-to-Ship Transfer Unlocks Global Scalability

One of the biggest hurdles in OCCS adoption has been offloading logistics, particularly for large vessels unable to access smaller ports where CO₂ is needed.

The ship-to-ship transfer approach, as demonstrated in Shanghai, solves this bottleneck:

• Faster and cheaper than land transport

• Enables mid-voyage CO₂ unloading

• Works at anchorage, needing no port infrastructure

• A CO₂ carrier can transport significantly more volume than tanker trucks

According to Du Mingsai, project manager of the transfer operation, this method is highly scalable and efficient—ideal for global adoption.

Shanghai’s world-first ship-to-ship CO₂ transfer showcases a viable, scalable path to maritime decarbonisation—one that’s both cost-effective and commercially attractive. With industry experts now contributing to IMO’s new OCCS working group, the “Shanghai Solution” could soon shape global standards, accelerating the shipping industry’s transition to a low-carbon future.