Nippon Yusen Kabushiki Kaisha (NYK) and ENEOS Corporation (ENEOS) on Wednesday (18 December) said they signed an agreement on 11 December regarding the sale and purchase of marine fuel with carbon dioxide removal credits (CDR credits) created through Direct Air Capture with Carbon Storage (DACCS).
The agreement stipulates that ENEOS will procure CDR credits from 1PointFive’s STRATOS Direct Air Capture plant in Texas, United States, that is scheduled to commence operations in 2025.
These credits are generated by removing CO2 from the atmosphere and storing it underground. ENEOS will then sell these credits, along with the marine fuel it supplies, to NYK for five years starting in 2028.
DACCS is one of the negative emission technologies that achieves the removal of greenhouse gases (GHGs) that cannot be reduced by energy conservation or transition to next-generation fuels. This innovative technology contributes to achieving net zero emissions in the energy sector.
NYK and ENEOS will continue to actively promote the development and dissemination of GHG emissions reduction technologies, including DACCS, to contribute to the realisation of a carbon-neutral society.
Based on the NYK Group Decarbonisation Story published in November 2023, NYK is promoting CO2 emissions reduction toward achieving net zero emissions by 2050. This is being done by maximising energy efficiency and transitioning from traditional fossil fuels to next-generation fuels such as LNG, ammonia, and methanol. Additionally, for residual emissions that cannot be eliminated through efforts to reduce emissions, NYK aims to achieve net zero CO2 emissions through a “reduction” and “removal” approach by offsetting emissions using CDR credits.
Based on the Third Medium-Term Management Plan & Carbon Neutrality Plan announced in May 2023, the ENEOS Group is working on reducing and absorbing its own CO2 emissions through such as Carbon Capture and Storage (CCS), forest absorption, and DACCS.
The firm also working on reducing society’s overall emissions through the promotion of energy transitions to such as hydrogen, biofuels, and renewable energy, with the aim of achieving net zero emissions at the Group and society at large. Moreover, through the launch of carbon offset fuel announced in January 2024, ENEOS will contribute to voluntary initiatives across society.
1PointFive is a Carbon Capture, Utilisation and Sequestration (CCUS) company that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonisation solutions, including Carbon Engineering’s Direct Air Capture and AIR TO FUELS™ solutions alongside geologic sequestration hubs.
Direct Air Capture can help marine companies advance their emissions removal goals during the transition period until low-carbon fuels become widespread and address residual emissions of alternative fuels.
Photo credit: 1PointFive
Published: 20 December, 2024
