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Decarbonizing Asian shipping: The potential of Onboard Carbon Capture

DNV dives deep into the potential of Onboard Carbon Capture Storage particularly in Asia to coincide with the recent release of its latest whitepaper.
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Editor’s note: DNV on 9 July published a new class notation to enable hydrogen vessels and on-board carbon capture. The latest information can be found here.

With the recent release of its latest whitepaper, classification society DNV sheds light on the potential of Onboard Carbon Capture Storage particularly in Asia, highlights the growing interest in it among shipowners and what needs to happen to encourage its wider adoption:

By Cristina Saenz de Santa Maria
VP, Regional Manager – South East Asia, Pacific & India, Maritime at DNV

The International Energy Agency (IEA) says that to achieve the 1.5°C global warming limit set by the Paris Agreement, we need to capture 7.6 billion tons of CO2 annually by 2050. (Ref 1)

In its July 2023 update, the Global CCS Institute (GCCSI) mentioned that current Carbon Capture and Storage (CCS) projects cover about 50 megatons of CO2 annually. This implies that from 2023 to 2050, CCS capacity must increase at least 100 times to capture the projected 7.6 billion tons of CO2. (Ref 2)

DNV sees strong potential for Onboard Carbon Capture Storage – or OCCS- an area it is actively engaged in with industry players to put to the test.

Cristina Saenz de Santa Maria

Cristina Saenz de Santa Maria, DNV

OCCS outlook in Asia

In its latest white paper about OCCS, DNV sets out to provide guidance to shipowners, technology providers, and other stakeholders on central matters related to OCCS. (Ref 3)

It makes it clear from the start that OCCS is key among all other efforts to reduce greenhouse gas (GHG) emissions from shipping, in addition to improving energy efficiency and switching to carbon-neutral fuels.

Capturing the CO2 produced by carbon-based fuels and utilizing it, or storing it underground, is important for the maritime industry if it is to get anywhere near the IEA targets or meeting IMO goals for emissions reductions:  to reduce the total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030, compared to 2008. (Ref 4)

One industry voice which updates us on CCS activities in Asia (as well as Europe) is Jasper Heikens, CCO at ECOLOG, a mid-stream CO2 service company.

He points out that one of the drivers to undertake CCS is that industries in Asia will need to adhere to the EU’s forthcoming Carbon Border Adjustment Mechanism (CBAM) if they wish to sell their products into the EU.

Mr Heikens thinks Asia will emerge as the biggest CO2 shipping market, because Japan and Korea have very limited storage capacity and will need to transport their CO2 over greater distances than the EU to, for example, Malaysia, Indonesia, or Australia. (Ref 5)

In March this year, the Singapore based Global Centre for Maritime Decarbonization (GCMD) released its landmark study on offloading onboard captured carbon dioxide and identified low port readiness as key barrier to large-scale commercialisation:

  • Infrastructure and procedures for handling captured carbon dioxide (CO2) at ports are currently inadequate,
  • Defining clear pathways to offload, utilise, and/ or sequester CO2, is crucial for large-scale commercialisation of onboard carbon capture and storage.

Commenting in the report, Professor Lynn Loo, CEO of GCMD had this to say: “While pilots have successfully demonstrated numerous capture technologies onboard ships, it is still uncertain how captured carbon on merchant ships can be safely offloaded, and what the rest of the value chain looks like.” (Ref 6)

Growing interest among shipowners

With the regulatory landscape rapidly evolving, it will become increasingly important for shipowners to look ahead and embark on a decarbonization strategy that allows for regulatory compliance and optimized operations.

It is no wonder that in recent years, we have seen a growing number of shipowners across Asia entering into partnerships to explore the potential of OCCS.

DNV entered into a Joint Development Project (JDP) with AL Group and its Singapore company Asiatic Lloyd Maritime LLP in November 2023 to explore the feasibility of CCS on board AL’s 7,100TEU containership and Kamsarmax bulk carrier newbuildings. (Ref 7)

Under the JDP, DNV will cooperate with AL on a techno economic study of CCS on board the vessels using DNVs FuelPath to assess the economic potential of the different fuel and technology strategies.

Backed by DNV’s experienced global network and team of experts in the Centre of Excellence for Maritime Decarbonization & Smart Shipping in Singapore, we are in a prime position to help the industry navigate the maritime energy transition in a safe and efficient manner.” (Ref 8)

Earlier this year, we entered into another JDP, this time with the Singapore-based shipping company SDTR Marine to cooperate on an Onboard Carbon Capture and Storage (OCCS) feasibility study for the latter’s 85,000 dwt Kamsarmax bulk carrier.

DNV, through its work with other stakeholders and through these JDPs, will make sure it addresses the extremely important economic viability of OCCS and take care of all operational and safety issues at the same time.

DNV

Steps towards wider adoption

For shipowners to adopt onboard carbon capture, appropriate emission regulations must be established to credit captured CO2.

Currently, the EU Emissions Trading System is the only regulatory framework incentivizing carbon capture on ships, which is in alignment with EU strategy on land-based CCS.

In addition, the IMO has initiated a working group to look further into how onboard carbon capture can potentially be implemented in new GHG emission regulations.

We also know every well – and the whitepaper emphasizes this – that globally maritime cannot go on its own with OCCS. We must be connected to the global CCUS value chain.

As of today, this infrastructure is not established. The shipping industry needs to reach out to relevant CCUS development projects near major shipping hubs to discuss how the maritime industry can connect to the wider CCUS value chain.

OCCS will be driven to succeed only if it has the necessary global and regional regulatory approvals, in addition to industry assessments, testing and pilot projects.

Note: Access DNV’s guidelines for Onboard Carbon Capture Systems (OCCS) onboard ships here.

References:

  1. https://www.iea.org/reports/net-zero-roadmap-a-global-pathway-to-keep-the-15-0c-goal-in-reach
  2. https://www.globalccsinstitute.com/wp-content/uploads/2023/12/Global-Status-Report-2023_Slide-Deck-APAC-Website.pdf
  3. https://www.dnv.com/maritime/publications/the-potential-of-onboard-carbon-capture-in-shipping-download/
  4. https://www.imo.org/en/OurWork/Environment/Pages/2023-IMO-Strategy-on-Reduction-of-GHG-Emissions-from-Ships.aspx
  5. https://www.dnv.com/expert-story/maritime-impact/positive-outlook-for-carbon-shipping-amid-big-push-to-fix-technical-challenges/
  6. https://www.gcformd.org/landmark-study-on-offloading-onboard-captured-carbon-dioxide/
  7. https://www.dnv.com/news/dnv-and-al-group-to-cooperate-on-ccs-feasibility-study-250184/
  8. https://www.dnv.com/news/dnv-inks-jdp-to-explore-occs-for-sdtr-marine-s-kamsarmax-252180/

 

Photo credit: DNV
Published: 24 June, 2024

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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Milestone

GCMD: Project CAPTURED achieves two regulatory milestones for onboard captured CO2

CO2 captured onboard during the project has been formally recognised for compliance under the EU ETS while a proposal submitted to MEPC 84, based on the project, has received IMO’s in-principle support.

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July 22, 2026

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Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (21 July) said Project CAPTURED has achieved two regulatory milestones that strengthen the commercial case for onboard carbon capture and storage (OCCS).

This comes following its world’s first demonstration of an end-to-end value chain for onboard captured and liquefied CO2 (LCO2).

Completed in June 2025, the pilot showed that CO2 captured onboard a vessel can be offloaded ship-to-ship, transported overland and permanently bound through carbon mineralisation—a process that converts captured CO₂ into stable materials for industrial use.

The CO2 captured onboard during Project CAPTURED has been formally recognised for compliance under the European Union Emissions Trading System (EU ETS). This means the verified tonnage of captured CO2 can be deducted from emissions requiring the surrender of EU Allowances (EUAs).

To qualify for this recognition, the CO2 must be chemically bound permanently in eligible products. Project CAPTURED demonstrated that CO2 captured onboard vessels can meet this requirement through carbon mineralisation.

The data and learnings from the same demonstration formed the basis of a proposal submitted to MEPC 84. This proposal received in-principle support from the International Maritime Organization (IMO) for recognising carbon mineralisation as a form of permanent CO₂ storage.

Complementing geological sequestration, which is already accepted by the IMO, this recognition broadens the downstream options for CO2 captured onboard vessels, and supports the development of maritime carbon value chains. Beyond providing a permanent storage pathway, carbon mineralisation also creates the potential for captured CO2 to serve not only as a waste stream requiring permanent storage, but also as a feedstock for industrial applications through carbon mineralisation, extending emissions reductions beyond the shipping value chain.

Professor Lynn Loo, CEO, GCMD, said, “Project CAPTURED has moved OCCS beyond technical demonstration. The acceptance of the EU ETS deduction gives captured CO₂ a compliance value. At the same time, IMO’s in-principle support for carbon mineralisation will help clarify how captured CO2 can be treated after it leaves the vessel. Together, these milestones turn a pilot into a verified reference case for maritime carbon logistics, one that links regulatory recognition, commercial value and emissions impact.”

 

Photo credit: Venti Views on Unsplash
Published: 22 July, 2026

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