| Carbon capture and storage APAC on course to become


world’s largest CO2 shipping market


shipping market, according to a new report* from energy consultancy Xodus. Produced in partnership with Subsea7, the new


Vast distances between carbon dioxide emitters and sequestration sites in the Asia–Pacific (APAC) region means it is in line to become the world’s largest CO2


report, Forecasting the APAC CCUS Infrastructure, finds that by 2055, APAC could require over 90 sites for CO2


disposal, around 8000 km of


pipelines and almost 80 specialist vessels in order to deliver its CO2


sequestration needs.


In Japan and Korea – both of which currently lack significant oil and gas production but are expected to lead CCUS (carbon capture, utilisation and sequestration) demand in the region – the requirement for carbon dioxide sequestration could necessitate an offshore industry similar in scale to the gas infrastructure currently operational in north west Australia, the report suggests.


The report, the third in a series of publications on the global outlook for CCUS, also finds that CCUS projects linked to LNG assets could reduce costs by10 to 15%, the equivalent of shortening shipping distances by over 3000 km, helping to bridge the initial gap between emitters and disposal.


Simon Allison, Vice President APAC, Xodus, said: “As the urgency to tackle climate change intensifies, CCUS has staked a claim as one of the most effective and immediate solutions to reduce greenhouse gas emissions, particularly from hard-to-abate sectors such as cement, steel and fossil fuel power generation. These sectors are critical to economies in the region.


“CCUS is


already proven, mature, and can be deployed without requiring significant changes in consumer behaviour…


“While APAC currently trails areas like the North Sea in terms of deploying commercial- scale CCUS to serve industrial emitters, its large emissions footprint and operational experience in CO2


collection costs low, making


re-injection positions it to become a global hub for CCUS development in the decades ahead.”


Unlike Europe, where most CCUS projects rely on nearby emitters mainly served through pipelines, APAC will initially depend on international emitters and long-distance shipping, with local emitters providing a small portion of the demand.


While early offshore transport and storage costs are high due to the vast distances involved, Xodus expects them to fall as local disposal sites near to demand centres are developed and new market entrants cause tariffs to drop. Moreover, APAC’s high density of industrial and power emitters will also help to keep capture and onshore


CCUS highly competitive in the longer term, Xodus believes.


The research outlines the projected development of offshore CCUS infrastructure across ten APAC countries between 2035 and 2055.


“China and India are expected to focus on domestic storage solutions, but many APAC nations face vast distances – sometimes over 5 000 km – between CO2


What CCUS might look like like in the APAC region (Source: Xodus)


emitters and suitable


offshore storage sites,” says Olivier Mette, Global Advisory Director, Xodus. “This mismatch is a defining feature of the region’s CCUS landscape.” “Our analysis, backed by regionally adjusted cost assumptions and a robust, bottom-up methodology reviewed by leading industry bodies, demonstrates that while early projects will face high transport costs, these are expected to fall significantly as infrastructure scales and more emitters enter the market. “International collaboration, shipping infrastructure and regulatory alignment will be critical to unlocking APAC’s potential to become a world leader in cost-effective, large-scale CCUS deployment.”


Based on the current outlook, Xodus expects that almost 80 vessels for interregional shipping will be needed in 2055, the equivalent of 20% of Asia’s current


LNG fleet.


When using tonnage for comparison, the study finds that building six CO2


over 15 years is eminently achievable.


In the APAC region, CCUS projects linked to LNG assets could reduce costs (Source: Xodus)


*https://www.xodusgroup.com/this-is-what-we-do/forecasting-apacs-ccus-infrastructure/ www.modernpowersystems.com | September 2025 | 29 carriers per year


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