The conference in Singapore, in collaboration with DNV, emphasized the need for scaling up CO2 shipping and CCS technology. DNV’s Martin Cartwright highlighted the infancy of large-scale CCS implementation, with just 40 million tonnes captured annually compared to the required billions to achieve net-zero emissions by 2050.
Significant Shortage
Mr. Cartwright noted the significant shortage of infrastructure, and distribution challenges. Today, there are only a handful of liquid CO2 (LCO2) vessels operating to transport pure CO2 for the food and beverage industry.
“The first dedicated vessels for carbon capture and storage purposes are already under construction and will be delivered in 2024,” he said. “They will be deployed on the Northern Lights project in Norway. In addition, this summer, the Greek owner Capital Gas Ship Management Corp has ordered the first-ever state-of-the-art 22,000-m3 liquid CO2 carriers at Hyundai Mipo Dockyard, South Korea for delivery 2025-2026.”
CO2 Shipping
- Ecolog plans to launch 65 vessels by 2035, with the first set for 2027.
- Qualification of materials for low-pressure CO2 is crucial to reduce costs for large vessels.
- DNV, in collaboration with industry leaders like Shell, Equinor, Total, and Gassco, is addressing these challenges through the CO2 Efficient Transport via Ocean (CETO) project, funded by both industry partners and Norwegian government support for CCS technology development.
Mr Sørhaug was equally clear that calls for converting existing LPG tankers were misguided, stating, “We need new vessels to support this market that are designed for the specific properties of liquid CO2”.
Permanent Storage
DNV regional head of sales, energy systems, James Laybourn said the permanent storage of CO2 underground poses challenges.
“We are confident there is large potential capacity for global storage of CO2 in depleted fields and saline aquifers,” he said. “In each case, the potential site needs to undergo rigorous evaluation and testing to ensure the site is suitable and safe for the permanent storage of CO2. Such assessment and verification processes are utilised to ensure all key stakeholders can be confident of the storage site integrity during the CO2 injection process and also after the site is sealed.”
Mr Laybourn explained:
“The value chain needs to consider two parts,” he said. “The first part is the development of the sequestration sites themselves… The second part is the infrastructure to capture and transport the CO2 to the field. All of these elements of the value chain need to be developed to support CCS in Singapore. The transport will depend on adequate shipping infrastructure and the regulatory framework to enable international transport of CO2.”
Navigating Cost Challenges
- Cost plays a crucial role in establishing a commercially viable CCS value chain.
- Government incentives, such as carbon pricing, are essential, especially considering the high costs involved.
- Carbon prices in Europe are nearing levels conducive to economic viability, but lower carbon taxes in Asia will require greater efforts to reduce the value chain’s cost.
Various regulatory drivers and policies are also pushing CCS forward. Mr Cartwright noted the need to “focus on the areas where we are actually emitting the CO2. There are technologies and massive companies that are recording and reporting all the emissions of CO2 globally. We also see that areas with mature oil and gas industries in place are taking the lead, as it is much easier for them to capture CO2.”
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Source: Riviera
