MOL Invests in Liquid CO2 Shipping Line
Japanese shipping group Mitsui O.S.K. Lines (MOL) is betting on the future of carbon capture and storage with an investment in a company specializing in liquid CO2 transportation.
Norway-based Larvik Shipping has managed industrial liquefied CO2 tankers serving Europe for over 30 years. It is one of just a few companies in the world qualified to operate vessels for the transportation of food grade CO2, used mainly by hospitals, breweries, and the food industry.
In partnering, the two companies will look to combine expertise and knowledge to expand its business in carbon dioxide capture utilization and storage (CCUS) value chains, effectively connecting CO2 collection sites with storage or use sites.
Carbon capture is considered a key component in achieving ambitious net-zero emissions targets, and the use of CCUS expected to grow over time as the technology improves, costs fall and cheaper options are exhausted. According to a report by the International Energy Authority (IEA), CCUS targets a 15% reduction in cumulative CO2 emissions by 2070, assuming a scenario where emissions from the energy sector fall to net zero.
The investment marks MOL’s entry into the liquefied CO2 ocean transport business, a sector the group says is positioned for significant growth.
For Larvik Shipping, the company says operation of liquified CO2 vessels for food grade CO2 will continue to be its focus going forward, but the investment will contribute to further expansion of its business by combining MOL’s expertise and technological capabilities.
Part of the agreement includes looking into the adoption of larger ships with an eye toward expanding both upstream and downstream and in the CCUS value chain.
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