KNCC and COSCO Team Up to Build Global Offshore CO2 Carrier for CCUS

Knutsen NYK Carbon Carriers AS (“KNCC”) has partnered with COSCO Shipping Heavy Industry to explore the feasibility of building LCO2 carriers. KNCC is a joint venture between NYK Line and Knutsen Group. This collaboration aims to address the growing demand for carbon capture and storage (CCS) solutions worldwide. By conducting a joint study, KNCC and COSCO Shipping Heavy Industry will assess market conditions and refine the design of LCO2 carriers to meet the specific needs of the CCS industry.

The joint study will employ KNCC’s proprietary LCO2-Elevated Pressure (LCO2-EP) technology for the LCO2 carrier. The vessel design, including its cargo tanks, received Approval in Principle (AiP) from DNV in 2022, and the LCO2-EP cargo tanks subsequently secured the Gas Approved Service Arrangement (GASA) certification in 2023, also from DNV. The study will explore the vessel concept as a Direct Injection Offshore (DIO) unit, particularly relevant for Carbon Capture, Utilization, and Storage (CCUS) projects in the North Sea region. The DIO approach is anticipated to streamline the establishment and operation of a CCUS value chain, reducing both time and costs compared to traditional onshore or floating terminal infrastructures.

Oliver Hagen-Smith, CEO of KNCC, expressed enthusiasm about the collaboration with CHI, emphasizing that their joint efforts are poised to advance Carbon Capture, Utilization, and Storage (CCUS) projects. He highlighted that KNCC’s LCO2-Elevated Pressure (LCO2-EP) technology is ideally suited for direct offshore injection operations because it simplifies the process by operating at ambient temperatures and higher pressures, which reduces onboard energy and complexity compared to other cryogenic methods. This approach eliminates the need for pre-injection heating, streamlining operations. Hagen-Smith also noted that KNCC benefits from extensive offshore expertise through its sister company, Knutsen NYK Offshore Tankers (KNOT), which will enhance KNCC’s offshore capabilities.

Shi Wei, the executive overseeing CHI's offshore business, anticipates that the partnership with KNCC will unlock substantial opportunities for CO2 emission reduction projects within the shipbuilding and offshore sectors. He emphasized that the LCO2 direct injection vessel, utilizing KNCC’s LCO2-Elevated Pressure (LCO2-EP) technology, offers a distinctive and attractive design for shipbuilders. Wei expressed enthusiasm about collaborating with KNCC on this groundbreaking project, which is poised to drive innovation and advance efforts in reducing carbon emissions.

COSCO Shipping Heavy Industry Co., Ltd. (CHI), a subsidiary of China COSCO SHIPPING Corporation Limited, is a major player in the global shipbuilding and marine services industry. With a focus on new construction, repair, conversion, and related marine support services, CHI offers a comprehensive range of solutions for the maritime sector.