Japanese Companies to Standardize LCO2 Carriers to Meet Anticipated Demand

Seven of Japan’s leading companies in shipping and shipbuilding have agreed to work together on a unique project that seeks to establish standard specifications and designs for LCO2 (liquified carbon dioxide) carriers. This comes as each of the companies has been conducting projects to develop the emerging category of vessels and to establish the supply chain for the transport and storage of carbon captured from heavy industry.

“As the demand for LCO2 carriers is expected to grow in various CCS (Carbon dioxide Capture and Storage) projects that transport CO2 collected in Japan to storage sites by sea, it is necessary to build and supply LCO2 carriers stably within Japan to realize the CCS value chain and improve economic efficiency,” the companies said in their joint announcement. 

The project will involve shipping companies Mitsui O.S.K. Lines (MOL), NYK Line, and “K” Line, each of which has been working on elements of the ships. “K” Line is the closest to the sector as the company is set to manage and operate the vessels being built for Norway’s Northern Lights project. The first two vessels are nearing completion in China with the first due to delivery this year. It is set to become the first commercial project for the transportation and ultimately storage of CO2 from industries in Northern Europe at a location under the North Sea.

Representing the shipbuilding sector are Mitsubishi Shipbuilding, Imabari Shipbuilding, JMU, and Nihon Shipyard. The shipbuilders have also been developing designs and receiving the first certifications for the elements needed for the new sector. Mitsubishi, for example, launched a feasibility study with TotalEnergies for the development of an LCO2 carrier in 2021. Mitsubishi reported it had been granted Approval in Principle (AiP) from the French Classification Society Bureau Veritas (BV) for a cargo tank system to be mounted in a liquefied CO2 (LCO2) carrier. It is focusing on Type C tanks to transport the gas as a liquid in a low-temperature, high-pressure state.

To build the industry and Japan’s leadership, the companies have agreed to conduct a joint study. The goal is to establish standard specifications and designs for LCO2 carriers. They will also focus on the steps to establish a construction supply chain.

They plan to collaborate widely with industry stakeholders. Furthermore, they said the study would also enable construction at other shipyards to meet the broader need for the new sector. Rystad Energy last year calculated that as many as 55 vessels and 48 terminals would be required by 2030. They forecasted that annually more than 90 million tonnes (tpa) of CO2 will be shipped by the end of the decade.

The Japanese companies are saying their target was to have the first large ships for LCO2 transport under construction by 2027. The new study says its goal is for large-scale international marine transport of LCO2 by 2028.

Late in 2023, Japan completed construction of the first LCO2 carrier, a demonstration vessel. Named the EXCOOL, the 1,290 dwt vessel was built by Mitsubishi Shipbuilding. It is 236 feet in length and has a cargo tank capacity of 1,450 cubic meters. It is operated by Nippon Gas Line as a demonstration and testing of the steps required for loading, transport, and offloading.