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.
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.
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
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?
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.
Consortium secures USD 1.5 mil in government funding for carbon capture port project
PortZero project received funding to tackle one of the maritime industry’s most pressing challenges – decarbonising port operations while improving air quality in port communities, says STAX Engineering.
STAX Engineering recently said it is participating in a consortium that secured GBP 1.1 million (USD 1.5 million) in government funding led by carbon capture startup Seabound for its first major European project.
The maritime emissions capture and control pioneer has been awarded the grant through the UK Department for Transport’s sixth round of the Clean Maritime Demonstration Competition (CMDC6) as part of “PortZero,” a four-company consortium with Seabound, port operator Associated British Ports (ABP), and Lomar Shipping.
The PortZero project—”Enabling Zero-Emission Ports via Carbon and Air Pollution Capture from Berthed Vessels”—tackles one of the maritime industry’s most pressing challenges – decarbonising port operations while improving air quality in port communities.
By integrating Seabound’s carbon capture technology onto STAX’s proven emissions capture and control barge, the project will demonstrate how ports can achieve comprehensive emissions reductions without costly vessel retrofits or new infrastructure investments.
The solution provides a practical, cost-effective alternative to shore power installations, which require significant upfront capital, aren’t viable for all vessel types, and remain largely unbuilt—with major European ports having installed or commissioned only 20% required by EU regulations.
“This project validates what we’ve known for years—ports need emissions solutions that work today without the infrastructure disruptions caused by solutions like shore power,” said Mike Walker, CEO of STAX Engineering.
“The UK government’s investment in PortZero proves there’s real demand for technology that delivers immediate results without forcing ports to choose between operational efficiency and environmental responsibility. Our message is simple: clean air can’t wait, and with this technology, it doesn’t have to.”
The Clean Maritime Demonstration Competition is designed to accelerate the development of clean maritime technologies and infrastructure in the UK. Funded through the UK Government’s £236 million UK SHORE (Shipping Office for Reducing Emissions) programme and delivered by Innovate UK, CMDC6 committed more than £30 million across 71 projects focused on maritime decarbonization and smart shipping.
“Sustainability and innovation are key themes as ABP helps its customers to adapt to the changing environment” said Max Harris, Head of Strategy and Sustainability at Associated British Ports. “We are excited to explore the potential of this innovative solution as we pursue ever better air quality at our ports and support maritime decarbonisation”.
STAX and Seabound offer the first fully integrated emissions solution that is immediate, requiring no retrofits or expensive overhauls. STAX’s mobile barge captures up to 99% of particulate matter (PM) and 95% of nitrogen oxides (NOx), while Seabound’s unit isolates and stores up to 95% of carbon dioxide and 90% of sulfur emissions. The system will debut at ABP’s Southampton port with vessels from UK-based Lomar Shipping.
PortZero expands upon the successful Carbon Capture Showcase from April 2025, where the combined STAX-Seabound solution was first debuted and highlights collaboration with ABP, demonstrating growing momentum for addressing port emissions globally.
Singapore-based Berge Bulk installs carbon capture system on board bulk carrier
System, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System, designed to capture up to 15 tonnes of CO₂ per day.
Singapore-based dry bulk owner Berge Bulk on Wednesday (7 May) said it has completed the installation of a carbon capture system on board its 63,000 DWT Ultramax vessel Berge Yotei.
The system, developed by Value Maritime, integrates carbon capture into an exhaust gas cleaning system known as the Filtree System. It is designed to capture up to 15 tonnes of CO₂ per day, representing a potential 30% reduction in emissions during operations.
Unlike conventional scrubbers, the Filtree System removes both sulphur oxides and CO₂ from a vessel’s exhaust. CO₂ is absorbed into a reusable amine solution, which can be offloaded in port for regeneration or reuse. Potential applications include use in greenhouses, beverage production, and other industrial processes — contributing to a more circular carbon economy.
“Carbon capture is a key pillar of our decarbonisation strategy. While we remain committed to optimising fleet efficiency, installing decarbonisation technology, and switching to new fuels, we must also capture carbon at the same time.” said James Marshall, CEO of Berge Bulk.
“We’ve been actively capturing carbon through nature-based solutions on shore for many years, now it’s time to also start capturing carbon on board.”
As the industry looks to decarbonise, Berge Bulk emphasised the need for collaboration across governments, ports, technology providers, and regulators to develop the infrastructure, protocols, and commercial models needed to support carbon capture at scale.
GCMD life cycle study quantifies net GHG emissions savings for pathways with OCCS
GCMD highlights comprehensive life cycle assessment quantifying GHG emissions and costs associated with onboard carbon capture and storage across the entire carbon value chain in COLOSSUS study.
The Global Centre for Maritime Decarbonisation (GCMD) on Tuesday (6 May) released its latest report on a comprehensive life cycle assessment (LCA) quantifying Carbon Capture and Storage’s (OCCS) potential to provide GHG emissions savings.
The study, named COLOSSUS (Carbon capture, offloading, onshore storage, utilisation and permanent storage), provides an in-depth analysis of GHG emissions and costs associated with OCCS across the entire carbon value chain, accounting for emissions from fuel production, transport and use, to CO2 capture onboard the vessel and its final disposition.
GCMD said LCAs facilitate an equivalent comparison of different decarbonisation measures; this comparison can help shipowners make informed decisions on solutions adoption based on their net abatement impact across the entire carbon value chain. This holistic quantification of emissions ensures that OCCS adoption does not lead to inadvertent increases in emissions in adjacent sectors because of decisions made downstream.
“While LCAs are available for onshore carbon capture technologies in themselves, assessments of the overall GHG emissions from deploying these solutions onboard vessels across the associated value chains are limited,” it added.
A full assessment would require the inclusion of the well-to- tank (WtT) emissions of the fuel, onboard tank-to-wake (TtW) emissions, including those associated with OCCS operations, the subsequent emissions from transporting captured CO2, and those associated with permanent storage or its utilisation.
What this study considers
The study used a WtW GHG emissions of 93.3 gCO2eq/MJ for Heavy Fuel Oil (HFO) as a baseline for comparison against other scenarios. This study explored five OCCS technologies, with six marine fuel options, and three post-capture scenarios. Among OCCS technologies, the study examined different post-capture scenarios with conventional monoethanolamine (MEA)- based OCCS, with it being the most mature of the OCCS technologies in the industry. Based on the practical limitations of storing large quantities of liquid CO2 onboard vessels, the study further assumed a 40% gross carbon capture for all scenarios explored, consistent with industry recommendations.
Key findings
Notably, the deployment of conventional MEA-based OCCS can result in a WtW GHG emissions savings of 29% for an HFO-fuelled ship.
Replacing HFO with biofuels presents a promising strategy for maximising GHG emissions savings. The WtW emissions savings for a vessel deploying MEA-based OCCS range from 69% to 121% when using bio-LNG and biodiesel from used cooking oil, respectively.
Among the post-capture scenarios evaluated, fixing the captured CO2 in concrete is most effective. This approach can increase GHG emissions savings from 29% to 60% across the carbon value chain by partially displacing the need for carbon-intensive cement in applications Ashore.
Post-capture transport and permanent storage of CO2 add minimal emissions, approximately 1% to the WtW emissions of a vessel deploying MEA-based OCCS when the captured CO2 is transported 1,000 km.
Captured CO2 can also be used to produce e-methanol with renewable electricity, allowing the vessel that consumes this e-methanol to claim a 17% GHG emissions savings.
The cost of avoided carbon for OCCS with permanent storage is between USD 269-405/tCO2 for a 40% gross capture on an MR tanker, considering a full-scale, Nth-of-a-kind installation of an OCCS system with full heat recovery.
Note: The full statement by GCMD can be found here while the full study findings can be found here.
Photo credit: Global Centre for Maritime Decarbonisation Published: 6 May, 2025