— Toward Social Implementation of CCS, Contributing to Cost and Site Area Reduction in the Value Chain —

On August 28, JX Nippon Oil & Gas Exploration Corporation (JX), Nippon Yusen Kabushiki Kaisha (NYK), and NYK’s affiliate Knutsen NYK Carbon Carriers AS (KNCC) conducted a demonstration experiment to study the optimization of the carbon dioxide (CO₂) liquefaction and storage process (Note1) utilizing KNCC’s proprietary technology “LCO₂ – EP Cargo Tank” (Note2).

In May of this year, the three companies devised a CO₂ liquefaction process (hereinafter referred to as the “Process”) based on the isenthalpic expansion cooling and liquefaction process (Note 3), which utilizes the characteristics of the elevated pressure (EP) method that stores and transports liquefied CO₂ at ambient temperature. The demonstration experiment was conducted at KNCC’s demonstration facility “Test Rig” in Norway with the addition of a liquefaction unit for the Process. Through the experiment, CO₂, which replicated the conditions under which it was gathered and transported by pipeline, was successfully liquefied and transferred to the LCO₂-EP Cargo Tank. We conclude that the technology devised in this Process has achieved a technology readiness level (TRL) 6 (Note 4).

In principle, the liquefaction efficiency of this Process is equal to or higher than that of conventional liquefaction conditions and methods, and energy reductions of up to 20% are expected. In addition, the equipment required for this Process is simpler and more compact than conventional liquefaction methods, and modularization and floating systems can also be considered, which is expected to contribute to reducing the cost and site area of CO₂liquefaction facilities in the CCS and CCUS (Note 5) value chain.

Details of the demonstration experiment will be presented at future conferences and other events. The three companies will continue to work together to implement and promote the Process.

Tetsuo Yamada, Executive Vice President, JX Nippon Oil Exploration Corporation
The success of this demonstration experiment is the result of the enthusiasm and professionalism of the three companies and represents an important milestone in the optimization of the CO₂ liquefaction and storage process. Based on this achievement, we will continue to strengthen our collaboration with NYK and KNCC to implement the use of the Elevated Pressure (EP) Method, promote environmentally friendly businesses centered on CCS/CCUS, and further pursue the creation of social value for the realization of a sustainable society.

Tsutomu Yokoyama, Executive Officer, NYK Line
Since signing a memorandum of understanding (MoU), the three companies have worked together on a number of studies toward this demonstration experiment. I am very pleased that this experiment was successfully conducted. We are confident that this initiative will contribute to reducing the cost and site area of the liquefaction and storage process, which is an issue for CCS implementation. We will continue to strengthen our collaboration with JX Nippon Oil & Gas Exploration and KNCC, and contribute to the promotion of CCS implementation and the realization of a decarbonized society in Japan and abroad.

Oliver Hagen-Smith, CEO, Knutsen NYK Carbon Carriers AS
This is a major breakthrough for the CCS landscape. I am delighted with the teamwork among the parties and the success of the demonstration. The developed liquefaction method will be a game changer for the CCS industry as it enables seamless liquefaction of CO₂ in the export process. Minimizing OPEX and the area required for liquefaction, but also in specific cases removing the need for onshore storage, is crucial in the development of CCS value chains. The developed liquefaction process along with the LCO₂-EP Cargo Tanks again proves that KNCC and its partners provide optimized economical, flexible and optionality in solutions to the industry.