Recently, Japanese shipping giant Mitsui O.S.K. Lines (MOL) and Mitsubishi Shipyard developed the world’s first vessel design capable of transporting liquefied carbon dioxide (LCO2) and methanol, which has received Approval in Principle (AiP) from a classification society.
According to reports, the newly designed vessel can transport captured LCO2 to methanol plants and then carry synthetic methanol on its return trip.
“In the carbon capture, utilization, and storage (CCUS) process, technologies that convert CO2 into fuel or chemical products as a means of CO2 utilization are gaining attention,” MOL stated.
Shipowners have been researching supply chains that utilize captured CO2 to produce synthetic methanol.
MOL added, “Synthetic methanol is expected to become one of the marine fuels that contribute to decarbonizing the shipping industry.”
The new vessel design is based on a low-pressure LCO2 carrier.
MOL explained, “Using dedicated CO2 or methanol carriers would result in half of the voyages being empty. The new design addresses the issue of empty-leg voyages.”
Next, the partners will continue advancing prototype development based on findings and technical challenges identified during the conceptual study phase.
MOL stated, “Our goal is to commercialize the LCO2/methanol carrier through collaboration with relevant companies in the supply chain and other partners.”
### Building the Supply Chain
MOL is working to establish supply chains for synthetic fuels/methanol and CO2.
In 2024, MOL invested in HIF Global, a leading e-fuel company, to fund its e-fuel projects in the U.S., Australia, Chile, and Uruguay. HIF Global is a U.S.-based company that develops, produces, and transports this fuel in the Americas and Australia.
In June this year, MOL partnered with Malaysia’s national oil company Petronas and top shipping firm MISC to establish a joint venture, Jules Nautica, for building and operating LCO2 carriers. The three parties recently completed the Front-End Engineering Design (FEED) for a 62,000-cubic-meter LCO2 carrier developed by Shanghai Ship Research and Design Institute (SDARI). This vessel will be one of the most advanced low-pressure, low-temperature LCO2 carriers in the industry. The companies stated that the new joint venture aims to become a leading LCO2 carrier owner, facilitating the transport of liquefied CO2 to designated storage sites in the Asia-Pacific region.
### Urgent Need for New Vessels
Recently, the European Commission adopted a delegated regulation outlining identification and calculation rules for European oil and gas producers, who are required to provide new CO2 storage solutions by 2030. The regulation imposes binding CO2 storage obligations on the EU’s 44 oil and gas producers. By 2030, these companies must inject at least 50 million tons of CO2 annually into geological storage sites. By 2040, the European Commission estimates this will need to increase to 250 million tons.
Clarksons warned that following the new EU legislation, immediate action is needed for CO2 transport, and expanding the specialized fleet is urgent.
Clarksons noted that the European Commission’s “critical decision” under Article 23 of the Net-Zero Industry Act (NZIA) is a milestone in accelerating industrial decarbonization. “The decision is still under review by the Parliament and the Council, but it directly links fossil fuel extraction to carbon storage responsibilities and highlights the urgent need to expand Europe’s LCO2 transport market.”
Kenneth Tveter, Clarksons’ Global Head of Green Transition and LCO2, said, “This is a clear signal that the EU is prioritizing carbon capture and storage (CCS) in its decarbonization agenda. European oil and gas producers will be compelled to provide CO2 storage solutions and help drive the value chain forward. There’s no time to waste.”
Clarksons stated that there are currently “very few” storage projects with final investment decisions.
In Europe, alternative projects include Northern Lights and Greenfield initiatives.
This remains an emerging market, with very few vessels currently in operation or under construction. Kenneth Tveter explained that most are committed for delivery within the next 10 to 15 years.
Kenneth Tveter emphasized that building new vessels is crucial.
Notably, Clarksons is optimistic about this sector and recently incorporated the emerging LCO2 carrier market into its business segment to expand its green transition portfolio.
Kenneth Tveter said that while the LCO2 industry is still in its “infancy,” “we anticipate significant demand for LCO2 carriers as the industry matures and projects progress. Based on current projects, we estimate total demand of around 50 vessels in the next five years, with potential for further growth,” he added.
