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DNV Decarbonization Insights: The rise of onboard carbon capture and storage in Asia

Concerns over potentially catastrophic impact of a rapidly warming planet have spurred efforts by Asian countries to set targets for achieving zero net carbon emissions by around the middle of this century.

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DNV Decarbonization Insights The rise of onboard carbon capture and storage in Asia

There’s a new acronym to get used to when embarking on the maritime decarbonization journey. 

It’s OCCS – which stands for “onboard carbon capture and storage” - and that’s comprehensively covered by DNV in its latest guidelines for the safe installation of the system on board ships.

The new OCCS guidelines have been produced amid growing pressure on the shipping industry to develop effective technologies to reduce emissions as part of the ongoing maritime energy transition.

Of course, many different methods for reducing greenhouse gas (GHG) emissions will be necessary – including alternative cleaner fuels and more effective energy saving measures - to achieve international, regional, and national emissions targets. 

But post-combustion OCCS on board trading ships is expected to be among these very necessary future solutions, especially on vessels where the use of alternative fuels is not feasible.

DNV's new guidelines are designed to be used by stakeholders across the value chain, including ship designers, builders, OCCS system manufacturers, and ship owners, and apply to both newbuilds and retrofits. 

In the process, DNV says it is vital to cover all aspects for safe installation, including exhaust pre-treatment, absorption with the use of chemicals/amines, after-treatment systems, liquefaction processes, CO2 storage, and transfer systems.

"A focus on safety is crucial for new technology and must be prioritised as the industry looks to adopt sustainable fuels and CCS installations," said Chara Georgopoulou, Head of Maritime R&D and Advisory Greece, Senior Research Engineer II, Onboard CCS Manager.

CCS technology is tried and tested in land-based industry, but its application on board ships is relatively unproven. 

What the DNV guidelines provide is a framework for installation, offering support for stakeholders in the industry, while contributing to reducing emissions and driving the maritime industry towards a more sustainable future.

There are currently no statutory regulations addressing the possible safety implications of using OCCS systems on board ships. The guidelines also cover alternative solutions for carbon capture, including physical absorption and cryogenic methods.

DNV ready to test OCCS in Asia

It was recently announced that DNV has entered a Joint Development Project (JDP) with the Singapore-based ship owner Asiatic Lloyd Maritime LLP (ALM) to explore the feasibility of OCCS with ALM’s container and Kamsarmax bulk carrier. 

The plan is for DNV to cooperate with ALM on a techno-economic study of OCCS on vessels using DNV’s FuelPath to assess the economic potential of the different fuel and technology strategies. The model will reflect a range of fuel and CO2 price scenarios and future decarbonization requirements, aligned with ALM’s own net zero ambitions.

T1 Ind 501 The FuelPath model

Ever ready to collaborate, Cristina Saenz de Santa Maria, Regional Manager Southeast Asia, Pacific & India, Maritime at DNV said she was delighted that DNV is partnering with Asiatic Lloyd Maritime to explore cost-effective fuel strategies that would support their net zero ambitions.

“It’s becoming increasingly important for shipowners to look ahead and embark on a decarbonization strategy that allows for regulatory compliance and optimized operations. 

“To this effect, backed by DNV’s experienced global network and team of experts in the Maritime Decarbonization & Autonomy Regional Centre of Excellence in Singapore, we are in a prime position to help the industry navigate the maritime energy transition in a safe and efficient manner,” she said. 

This is a good way to see how OCCS will work in different vessels and conditions, and notably in Asia. 

OCCS case study model

T2 Ind 501 Annual cost range

DNV’s latest Maritime Forecast to 2050 report detailed the techno-economic evaluation involving  the company’s tried and tested FuelPath model for a large, modern deep-sea ship, a 15,000 TEU container vessel, sailing between the Far East and Western Europe. 

Assumptions for this study  are that the ship runs on heavy fuel oil (HFO), has a carbon dioxide (CO2) capture unit and storage tanks, and is fitted with a scrubber for sulphur oxides (SOX) and exhaust pre-treatment. 

The study models annual costs under two on-board CO2 capture and storage (CCS) scenarios, Low and High cost, to compensate for economic uncertainties such as CAPEX and OPEX. It focuses on two parameters that it assesses as impacting most on the economics of on-board CO2 capture. 

One is the ‘fuel penalty’, the extra energy used for operating the capture unit. The other is the ‘CO2 deposit cost’, the sum of the CO2 transport and storage costs.

So, what is required for an economic case for on board CCS?

T3 Ind 501 Annual cost range CCS

For the annual cost range, the Low CSS (cost) scenario is seen to perform well against the other fuel strategies. The Forecast attributes this partly to the HFO price in the scenarios, and partly to fuel penalty and CO2 deposit costs compared with the cost of buying a larger share of carbon-neutral fuels.  

The High CCS (cost) scenario performs around the middle of the studied fuel strategies. For net present value, the High CCS (cost) case is close to the mean for the fuel strategies by mid-century while the Low CCS (cost) case outperforms three-quarters of them.

“Our research suggests there can be an economic case for on-board CCS if the capture technologies have low fuel penalties and if a CCS industry can offer the low CO2 storage costs in our model,” says Eirik Ovrum, Maritime Principal Consultant at DNV and lead author of the Forecast.

While no detailed studies have been undertaken so far in Asia, there is growing interest in putting OCCS to the test.

Growing regional interest in CCUS

Concerns over the potentially catastrophic impact of a rapidly warming planet have spurred efforts by countries in Asia to set targets for achieving zero net carbon emissions by around the middle of this century. 

CCS and carbon capture, utilization, and storage (CCUS) are seen as ways to reduce the negative effects of fossil fuel use.

Last year, DNV and Petronas signed a Memorandum of Understanding (MOU) to address the technical, regulatory, and business challenges of carbon capture utilization and storage (CCUS) deployment. 

The collaboration entailed initiatives and activities related to CCUS deployment by leveraging each organisation’s technical skills, resources, and research capabilities. CCUS enables the capture of CO2 emissions from industrial activities and, in South East Asia, could play a crucial role in the region’s transition to net zero.

In June this year, DNV awarded Petronas, Mitsui O.S.K. Lines, Ltd. (MOL) and Shanghai Merchant Ship Design & Research Institute (SDARI) with Approvals in Principle (AiPs) for their jointly developed liquefied carbon dioxide (LCO2) carriers and LCO2 floating storage and offloading unit (FSO). This was awarded soon after the announcement made by Petronas, Pertamina, and PTTEP, South East Asia's three biggest national oil companies, that they are intensifying efforts to develop carbon capture and storage (CCS) capabilities in an attempt to both decarbonize and seize opportunities in the nascent industry. 

Taking DNV’s new OCCS Guidelines to heart and testing them in different vessels, situations and locations is a necessary step as the industry explores various means to decarbonize and achieve emission reductions. 

In Asia and everywhere, DNV believes the maritime industry has to go beyond setting targets to achieve net zero to actually putting in place effective technologies – as spelt out in the OCCS guidelines - to reduce emissions as part of the ongoing decarbonization process and towards an effective energy transition. 

Photo credit: DNV
Published: 3 November, 2023

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CCUS

DNV explores present state of onboard carbon capture in new white paper

DNV’s study examines OCC as a decarbonization solution for shipping by looking at its technical, economic, operational, and regulatory challenges, as well as its integration into CCUS value chain.

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DNV explores present state of onboard carbon capture in new white paper

Onboard carbon capture (OCC) is attracting interest within the shipping industry, providing shipowners with the opportunity to continue operating on conventional fuels while reducing emissions, said classification society DNV on Wednesday (5 June).

However, according to DNV’s latest whitepaper The potential of onboard carbon capture in shipping, its success depends on collaboration between regulators, policy makers, industry stakeholders, class, and suppliers.  

With decarbonization targets rapidly approaching, demand for cost-efficient solutions for emission reduction is increasing. DNV’s latest whitepaper explored OCC as a decarbonization solution for shipping by looking at its technical, economic, operational, and regulatory challenges, as well as its integration into the carbon capture, utilization, and storage (CCUS) value chain.

CCUS is the process of capturing CO2 and recycling it for future use or permanently storing it in deep underground geological formations. The maritime industry is exploring its application onboard ships, which will require an onboard system to capture, process and store the CO2, and a network of offloading which is integrated into wider CCUS infrastructure.

Chara Georgopoulou, Head of Maritime R&D and Advisory Greece, said: “OCC is expected to be part of a range of future options which will help shipping achieve its decarbonization goals. However, further collaboration and testing is required to verify its performance.”

“The commercial attractiveness of OCC will depend on the terms under which regulations can credit the removal of carbon emissions, and how smoothly it can be integrated into the growing CCUS value chain.” 

For OCC to be relevant for wider application it must be economically viable and competitive with other decarbonization alternatives. If successfully deployed, OCC can become a key way for shipowners to comply with decarbonization regulations, while also helping to reduce the demand for alternative fuels.

The EU ETS is the only regulatory framework currently providing commercial incentives for OCC. To encourage shipowners to adopt the technology, future environmental and greenhouse gas (GHG) emissions regulations must also provide credit for captured CO2.

“If we are to achieve IMO decarbonization targets, we must leave no stone unturned in continuing to investigate OCC and other potential technologies that can accelerate shipping’s decarbonization journey,” Georgopoulou said.

Note: The paper is available for free download here.

 

Photo credit: DNV
Published: 10 June, 2024

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Bunker Fuel

Singapore: Seatrium and ABS to develop and commercialise green retrofit products and services

This includes carbon capture, energy efficiency enhancement measures such as air lubrication systems and wind assisted propulsion as well as the integration of low/zero carbon energy sources.

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Seatrium and ABS to develop and commercialise green retrofit products and services

Singapore-headquartered marine engineering firm Seatrium on Wednesday (8 May) announced a three-year Technology Collaboration Agreement (TCA) with ABS (American Bureau of Shipping) at the Offshore Technology Conference (OTC) 2024 in Houston, Texas. 

This agreement builds on the successful history of collaboration between the two organisations and aims to accelerate decarbonisation and energy transition in the maritime and offshore sectors.

The TCA with ABS, titled “Accelerating Decarbonisation & Energy Transition”, will focus on four key themes: Decarbonisation, Electrification, New Energies, and Digital Transformation. 

The goal is to develop and commercialise green retrofit products and services, including but not limited to carbon capture, energy efficiency enhancement measures such as air lubrication systems and wind assisted propulsion as well as the integration of low/zero carbon energy sources on offshore assets, electrification, and digital technologies.

Mr Chris Ong, CEO of Seatrium, said, “Seatrium is making significant strides in our visionary approach to engineering a sustainable, low-carbon energy future. This progress is achievable through pivotal industry collaborations with organisations like ABS. We are more than just partners; we are natural allies united by a shared mission and driven by a powerful vision for a sustainable future. ABS and Seatrium have achieved great successes through our previous collaborations, and we are committed to harnessing our distinct strengths and capabilities to push the boundaries and transform the way we approach decarbonisation, energy transition, and digital transformation.”

Dr Christopher J. Wiernicki, Chairman and CEO of ABS, said, “Together, ABS and Seatrium have a remarkable history of pioneering the technological frontiers in the marine and offshore industries. Our shared vision for the future, combined with our twin cultures of innovation and collaboration, mean we are well placed to safely deliver the rapid technological advance our industry needs if we are to meet emissions targets and capitalise on the opportunities offered by decarbonisation and digitalisation.”

 

Photo credit: Seatrium
Published: 9 May 2024

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Technology

China: Headway and CEEC Group join forces in green hydrogen, methanol and ammonia integration project

Headway and state-owned firm CEEC Hydrogen Energy will jointly develop China’s hydrogen energy industry chain by establishing a green hydrogen-ammonia-methanol integration project for ships.

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China: Headway and CEEC Group join forces in green hydrogen, methanol and ammonia integration project

Qingdao-based maritime technology firm Headway Technology Group (Headway) and CEEC Hydrogen Energy on Monday (15 April) signed a strategic cooperation agreement to cooperate in hydrogen energy storage, transportation, utilisation, and equipment manufacturing.

Both parties aim to jointly promote the development of China’s hydrogen energy industry chain by establishing a green hydrogen-ammonia-methanol integration project for the shipping industry.

At a signing ceremony, Li Weibo, Standing Committee Member, United Front Work Minister, and Deputy District Mayor of Laoshan District, Qingdao City, highlighted hydrogen energy as a strategic emerging industry and a key direction for future industries in China.

He expressed hope for a replicable, comprehensible, and popularised road of comprehensive hydrogen energy utilisation through the cooperation, empowering the energy industry's transformation with new technologies, applications, and services.

Li Jingguang, Secretary of the Party Committee and Chairman of CEEC Hydrogen Energy, and Cao Xueliang, Chairman of Headway, were present to sign the agreement at the ceremony.

Li Jingguang emphasised that deepening cooperation would widen the application of sustainable fuels in shipping, achieving high-quality development and contributing to the nation's dual-carbon goal.

Cao Xueliang noted the agreement's significance in advancing low-carbon energy cooperation, stating Headway's commitment to leveraging its low-carbon shipping advantages and promoting cooperative projects for mutual strategic benefits.

CEEC Hydrogen Energy is the largest state-owned registered capital and professional platform company in the entire hydrogen energy industrial chain, including production, storage, transportation, utilisation, and research.

Utilising recyclable carbon sources collected by ships' carbon capture, utilisation and storage (CCUS) technology, Headway and CEEC Hydrogen Energy will produce low-carbon methanol and develop more hydrogen energy and methanol synthesis projects so carbon dioxide captured onboard can be used in the near future.

Additionally, both will promote key equipment and technologies globally, advancing the hydrogen energy industry chain's sustainability and supporting global dual-carbon goals and the shipping industry's green transformation.

Li Yanqing, Secretary General of China Association of the National Shipbuilding Industry (CANSI), Xin Ying, Head of Marine Equipment Industry Division of Shandong Provincial Department of Industry and Information Technology, Chu Xianfeng, Deputy Director of Qingdao Bureau of Industry and Information Technology, Hu Miaomiao, Director of Bureau of Industry and Information Technology of Laoshan District of Qingdao, Deng Hongwu, Member of the Party Committee of CEEC Hydrogen Energy Company Limited, and other relevant department heads and representatives also attended the signing ceremony.

 

Photo credit: Headway Technology Group
Published: 18 April 2024

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