similarly low temperature, to keep it in liquid form and prevent it converting from a gas into a solid as it expands – dry ice.


In the Northern Lights CCS project in Norway, for example, which is due to start operating this year, three 7,500 m3 gas carriers currently under construction at Dalian Shipbuilding Offshore will deliver liquid carbon dioxide to a receiving terminal in on Norway’s west coast. It will be stored there and piped to an aquifer 2,600 metres below the seabed of the North Sea.


In another context – this time focusing on utilisation rather than storage – Biliyok highlights the scope for manufacturing methanol which, he points out, is becoming a favoured fuel for shipping. Initially, CCS can be implemented on grey methanol facilities, converting it to blue or low-carbon methanol, producing shipping fuel with significantly reduced emissions. Ultimately, green hydrogen can be combined with bioenergy with carbon capture and storage (BECCS) – where carbon dioxide is captured from biomass – to produce green methanol, a near-zero emission shipping fuel.


Summing up, Pearson explains: “I look at the energy transition as one of the best business opportunities I can ever remember. It’s not a threat. It’s the best moral imperative too because we’re looking after the planet and we’re providing energy security and affordability for society. But we do need to find ways to collectively accelerate our progress.”


Quantifying the costs and sizing up the opportunity


Shipping of CO2 affords an important opportunity to rapidly build CO2 transport networks and accelerate the development of carbon dioxide storage to enable the decarbonisation at-scale of large carbon intensive industries such as cement and steel production.


According to Philippa Parmiter, CEO of NECCUS, an industry alliance that promotes and champions industrial decarbonisation across


Scotland through co-operation and collaboration, the estimated costs of offshore storage in Europe ranges from Euro2-Euro20 (according to the EU Zero Emission Platform) depending on the type of store - saline aquifer, or depleted oil and gas field and the ability to reuse existing O&G infrastructure.


When transport costs are included, these costs will be higher if there is no adjacent storage with onshore storage being generally cheaper. Costs of carbon capture and storage rise when capture is factored in as costs depend on the percentage of CO2 in the gas stream, and can vary between Euro20-Euro100 or more.


Europe is exploring various policy measures to enable CCS development including the ETS, carbon storage obligations, and a carbon border adjustment mechanism (CBAM) - to reduce the import of high carbon footprint, cheap goods; and has found ways to enable shipping between individual countries, despite the lack of signatories to the London Protocol, Parmiter explains.


For the UK to avail itself of this opportunity, the UK and EU ETS need to be aligned. The UK is developing business models to enable the decarbonisation of industrial clusters through CCUS, whereas in the USA, CCUS development is being driven by tax credits for capture, utilisation and storage – under section 45Q - which has been enhanced recently through the Inflation Reduction Act (IRA).


CO2 shipping offers a great opportunity, providing resilience (if one store is not operating you can ship to another, whereas pipelines are point-to-point fixed transport), rapid access to storage (whilst pipelines are being built), and equitable access to stores for those who don't have them, enabling the growth of CO2 storage markets, she concludes.


This article first appeared on the Lloyd's Register website and is republished here with our thanks.


THE REPORT | DEC 2024 | ISSUE 110 | 83


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