Knutsen NYK Carbon Carriers AS (“KNCC”), a joint venture company between NYK Line and Knutsen Group, and COSCO Shipping Heavy Industry Co., Ltd. (“CHI”) has signed a Joint Study Agreement to ensure market preparedness and detail design development for Liquefied Carbon Dioxide (LCO2) carriers to support the rising market of CCUS projects being developed globally.

The LCO2 carrier under the joint study will be based on KNCC’s proprietary LCO2-Elevated Pressure (“LCO2-EP”) technology. The vessel design, including cargo tanks,  has been already granted  AiP in 2022 and the LCO2-EP cargo tanks further attained GASA in 2023 both from class DNV. The vessel concept for this study will focus on a Direct Injection Offshore (“DIO”) vessel where many CCUS projects, especially in the North Sea area, are looking into. DIO can save time and cost in the establishment and operation of a CCUS value chain compared to establishing dedicated terminal and export infrastructure being onshore or floating.

Oliver Hagen-Smith, CEO of KNCC said, “ KNCC is pleased working together with CHI, and believe the collaboration together will contribute to the realization of CCUS projects. KNCC’s LCO2-EP technology has the best match with direct injection offshore operation as it requires less energy and complexity onboard the vessel compared to other cryogenic modes servicing injection of  CO2 to permanent storage sites offshore. The operational management is simplified compared to cryogenic modes as the LCO2 is at ambient temperature and relatively higher pressures removing the need for heating offshore prior to injection. Our owners have long relations and first-class expertise for offshore operation through KNCC’s sister company Knutsen NYK Offshore Tankers (“KNOT”) which will contribute to KNCC’s offshore operations.”

Shi Wei, the executive in charge of CHI’s offshore business believes that the collaboration with KNCC will create significant potential opportunities for CO2 emission reduction related projects within the shipbuilding and offshore industries. The LCO2 direct injection vessel, which is based on KNCC’s LCO2-EP technology, represents a unique and highly appealing design and concept from the perspective of shipbuilders. We are excited about the prospect of working together with KNCC on this innovative project.