Decarbonisation

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.

Published

9 months ago

June 24, 2024

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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, 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:

Photo credit: DNV
Published: 24 June, 2024

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SMW 2025: MPA and Dalian Maritime University to partner on joint maritime training

Both signed a MoU to enhance talent development and academic exchange between Singapore and China, focusing on maritime digitalisation and decarbonisation and covering areas such as clean energy.

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SMW 2025: MPA and Dalian Maritime University to partner on joint maritime training

The Maritime and Port Authority of Singapore (MPA) and Dalian Maritime University (DMU) on Friday (28 March) said they have renewed their Memorandum of Understanding (MoU) to enhance talent development and academic exchange between Singapore and China in the maritime sector.

The MoU renewal was signed by MPA Chief Executive, Mr Teo Eng Dih, and Professor Shan Hongjun, President of DMU. This renewal builds on the successful collaboration established since 2021, and further strengthens talent development and knowledge exchange between both maritime ecosystems.

As part of the MOU, MPA and DMU will continue to engage in faculty exchanges, study visits and student exchanges in Singapore and Dalian, and joint maritime training and research programmes. Trainers from MPA, including subject matter experts and adjunct trainers, will contribute to courses, events and knowledge sharing.

The collaboration will focus on digitalisation and decarbonisation, covering areas such as clean energy and sustainable practices in the maritime sector, digital transformation of maritime operations, environmental management, maritime safety, navigational technologies, and port management and smart technologies.

DMU is home to world-class facilities, including two ocean-going training vessels and state-of-the-art research centre. A leader in autonomous ship technology and innovation in smart and sustainable shipping, the university has recently launched its 3rd ocean-going new generation autonomous training vessel.

Mr Teo Eng Dih, Chief Executive, MPA, said, “The renewal of this MOU reflects the strong partnership between MPA and DMU. As the maritime industry evolves, our collaboration in maritime education and training is more crucial than ever in preparing the next generation of maritime professionals. This agreement will enhance maritime talent development and knowledge sharing between Singapore and China, fostering innovation and sustainability in the maritime sector.”

Photo credit: Maritime and Port Authority of Singapore
Published: 28 March, 2025

Environment

SMW 2025: Maritime drone training for ship emission monitoring to be established

MPA and Republic Polytechnic ink a MoU to start a specialised Unmanned Aircraft Pilot Training programme for MPA pilots to operate drones for maritime applications such as monitoring vessel emissions.

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The Maritime and Port Authority of Singapore (MPA) and Republic Polytechnic (RP) have signed a Memorandum of Understanding (MoU) to establish a specialised Unmanned Aircraft (UA) Pilot Training programme for MPA UA pilots, which will also provide internship opportunities for RP students.

This initiative aims to equip MPA, as well as commercial UA pilots, with advanced competencies to operate drones for maritime applications. These include inspection of vessel structures, monitoring of vessel emissions, and supporting emergency response efforts.

The course will cover essential skills, including take-off and landing from vessels, emergency procedures at sea, and Beyond Visual Line of Sight operations. UA pilots will also be trained to operate drones equipped with various sensor payloads such as electro-optics, infrared, and multispectral imaging. Tethered drone operations, which enable extended flight times for surveillance and monitoring, will also be included.

Under this five-year collaboration arrangement, MPA and RP plan to develop competency frameworks for UA pilots operating at sea, and will train over 20 MPA UA pilots annually. The collaboration will also explore the potential development of a maritime-specific qualification for UA pilots for interested parties. The training will be conducted by RP’s team of full-time lecturers who are also certified UA Pilot Licence trainers.

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RP lecturers and students will also have opportunities to gain industry exposure and practical experience through participation in MPA’s upcoming drone-related projects. In addition, RP will work with MPA in relevant committees and forums to shape policies, safety standards, and regulations for maritime drone operations.

In 2025, MPA will trial new drone capabilities, including coordinated drone operations for chemical spill management and the Maritime Drones Traffic Management System to ensure safety in port waters.

The Maritime Drone Estate, launched in 2021, will also be expanded to support commercial drone services such as remote inspections and shore-to-ship deliveries. These advancements will contribute to safer, more fuel-efficient, and sustainable maritime operations.

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Published: 28 March, 2025

Emissions reporting

PSA, DNV and PIL team up on carbon emission measurement, reporting and verification

PSA and PIL will create end-to-end green supply chains and capitalise on DNV’s suite of digital solutions to help the maritime industry create a robust data ecosystem.

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PSA, DNV and PIL team up on carbon emission measurement, reporting and verification

PSA International (PSA), DNV Singapore (DNV) and Pacific International Lines (PIL) on Thursday (27 March) said they have signed a Memorandum of Understanding (MoU) to collaborate on carbon emission measurement, reporting and verification (MRV), and jointly develop sustainable solutions to advance decarbonisation in the maritime and logistics sectors.

Amidst the growing demand for transparency in sustainability reporting, there is an increasing need for the exchange of reliable and harmonised data across value chains. Paired with robust data assurance, reductions in logistics emissions can then be accurately measured for greater supply chain emissions visibility.

As part of the MoU, PSA will leverage its global network of ports, logistics nodes and intermodal solutions and partner with PIL, the largest Singapore-grown carrier in Southeast Asia with extensive networks in Asia, Africa, Middle East, Latin America and Oceania, to create end-to-end green supply chains.

Both companies will also capitalise on DNV’s suite of digital solutions to help the maritime industry create a robust data ecosystem, enabling digital assurance.

Being leaders in their respective fields, all the partners will cooperate to catalyse meaningful change and accelerate the adoption of low-carbon solutions to facilitate more efficient and sustainable global trade flows.

Antony M DSouza, Senior Vice President & Regional Manager, Southeast Asia, Pacific and India, DNV Maritime, said, “The maritime industry is at a crucial juncture where collaboration and digital innovation must go hand in hand to drive meaningful sustainability. To achieve real progress, we must not only leverage emerging digital technologies but also build trust through robust measurement and verification.”

“Through this partnership with PSA and PIL, we are committed to developing strong MRV capabilities that enhance transparency, enable data driven decisions, and accelerate the transition to greener supply chains. Together, we are shaping a future where sustainable trade becomes the industry norm, delivering lasting benefits for businesses, communities, and the environment.”

PSA Group Head of Operations and Sustainability, Eddy Ng, said: “As a leading global port operator and trusted partner to cargo stakeholders, PSA is well positioned to catalyse sustainable transformation in the ports and supply chain ecosystem by leveraging our global network of strategic nodes and energy hubs, in line with our Node to Network strategy.”

“This partnership with DNV and PIL reflects our belief that the path to a greener maritime industry is paved through collaboration, innovation, and a shared vision for a sustainable tomorrow. We remain dedicated to pioneering solutions that integrate sustainability into global trade flows while delivering the highest standards of operational excellence.”

Lionel Patrice Chatelet, Chief Commercial Officer, PIL, said: “PIL is fully committed to achieving net zero GHG emissions by 2050. This partnership with PSA and DNV strongly advances our proactive approach to developing and implementing low-carbon solutions.”

“Through this MOU, we will collaborate to develop a viable model for tracking and verifying supply chain GHG emissions reductions, leading to the development of Green Service Offerings (GSOs) that can help our customers better understand and lower their emissions footprint. Together, we aim to further digitalise processes, enhance data transparency and drive the sustainable decarbonisation of our industry.”

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Published: 28 March, 2025