The transportation of captured carbon dioxide (CO2) for offshore storage is becoming crucial as the push towards net-zero emissions gains momentum. Rystad Energy research predicts that by 2030, a fleet of 55 carriers will be needed to transport over 90 million tonnes per annum (tpa) of CO2, requiring 48 terminals for gas import and export.
At present, onshore pipelines are the primary means of transporting CO2, with 330 expected to be operational by 2030. While effective for transporting large volumes to storage sites or terminals, offshore pipelines are gaining importance in the supply chain. CO2 shipping is emerging as a flexible solution for covering longer distances at a relatively low cost.
However, CO2 shipping currently relies on emissions-heavy fuels like maritime diesel or low-sulfur fuel oil (LSFO), raising environmental concerns. Research by Rystad Energy suggests that ships traveling long distances could emit up to 5% of the total CO2 shipped. Transitioning to cleaner fuels like liquefied natural gas (LNG) could cut emissions by 18%, while blue methanol might lead to a 20% reduction. The most substantial reduction could be achieved with blue ammonia, potentially lowering emissions by up to 80%.
Despite environmental challenges, carbon dioxide shipping is expected to play a significant role in global climate solutions. Initiatives like open-source CO2 storage infrastructure and transportation network expansion are expected to address challenges along the carbon capture, utilization, and storage (CCUS) value chain.
Regionally, the North Sea is poised to become a hub for CO2 shipping due to its proximity to densely populated areas in Northern Europe. Countries like Norway, the Netherlands, the UK, France, Belgium, and others are anticipated to contribute significantly to the growth of the CO2 shipping market. Projects like the Northern Lights Project in Norway, an open-source CO2 transport and storage network, are expected to serve as models for future endeavors.
Australia is also set to play a significant role, shipping and storing CO2 from domestic projects and neighboring Asia-Pacific nations. While most proposed shipping routes are relatively short, some longer journeys, such as routes between Japan, Malaysia, and Australia, present flexibility and adaptability challenges for CO2 transportation.