Shipping key for transporting captured CO2 in Asia Pacific - GCMD

Cross-border shipping of captured CO2 is crucial for the Carbon Capture, Utilisation and Sequestration (CCUS) supply chain, especially in regions like Asia Pacific where sequestration hubs near emitters are scarce, according to a joint study by the Global Centre for Maritime Decarbonisation and Boston Consulting Group.

MAP: A map of cross-border CCUS supply chains. GCMD

“In APAC [Asia Pacific], emitters and sinks are often separated by large bodies of water over vast distances, unlike Northern Europe where CCUS facilities are more geographically concentrated. This makes shipping a more attractive mode of CO2 transport in APAC, underscoring the importance of building up a shipping ecosystem,” Global Centre for Maritime Decarbonisation (GCMD) chief executive Lynn Loo said.

By 2050, approximately 100 million mt/year of CO2 captured through carbon capture technologies could be transported across borders in APAC. This would require 85-150 liquefied CO2 carriers, with total investments reaching up to $25 billion.

Shipping becomes more cost-effective than pipelines for longer distances, with 500 km identified as the economic threshold for transporting 5 mt/year of CO2, according to the report.

Challenges in cross-border CO₂ shipping

Several financial and regulatory barriers must be overcome for cross-border CCUS projects to become viable. Scaling up requires significant investments in shipbuilding, port and terminal infrastructure.

Additionally, "frameworks are required to clarify jurisdictional authority for cross-border projects and allocate commercial and operational liabilities for CO2 leaks during transport across the value chain," it said.

Remediation

The study outlines three key actions for governments and private sector players to activate cross-border CO2 shipping.

Governments can provide financial incentives and develop business models to lower upfront costs for CO2 shipping, thereby improving economic feasibility. Emitters should offer long-term contracts of 10 plus years and commit to transporting minimum CO2 volumes to give value chain participants the financial certainty needed for investments in vessels and terminals. Additionally, clear standards on CO2 purity, pressure and temperature are essential to ensure interoperable infrastructure and smooth operations across the supply chain.

“Government support will be essential in the short term to ensure economic viability and to address cross value chain risks. Additionally, the industry must align on technical specifications, including CO2 pressure, temperature, and purity specifications, to enable seamless operations and infrastructure interoperability,” said Carl Clayton, Boston Consulting Group partner and associate director.

The study involved 60 individuals from 17 stakeholder organisations.

By Tuhin Roy

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