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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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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.

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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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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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