Japan’s NYK and Norwegian shipping company Knutsen Group have announced plans to launch joint venture liquified CO2 shipping and storage company.
The business will utilize Knutsen’s PCO2® technology which allows for the transport of liquified CO2 at ambient temperatures.
NYK and Knutsen will each hold 50% stake in the company, which has been named Knutsen NYK Carbon Carriers AS, or by the acronym KNCC. KNCC will also build and operate low/mid pressure vessels “based on other technologies,” the companies said in a press release.
Demand for liquefied CO2 carriers is expected to grow rapidly as the use carbon capture, utilization and storage (CCUS) technology increases to meet global energy and climate goals.
NYK and Knutsen say the establishment of the joint venture will combine the companies “extensive knowledge of ship operation and management,” helping to accelerate the “early realization” of both small and medium-sized vessels and also large liquefied CO2 carriers.
Establishing the joint venture will be “an important foothold for participation in the CCUS value chain.”
Svein Steimler, president and CEO of NYK Group Europe, will serve as chair of the Board of Directors of KNCC, while Trygve Seglem, owner and president of the Knutsen Group, will serve as vice-chair. Anders Lepsøe has been appointed chief executive officer of KNCC.
“Establishing KNCC enables NYK to offer marine transportation of liquefied CO2 which is an important milestone for reaching the targets set out in the Paris Agreement, and in line with NYK’s strategy and green business plan,” said Steimler.
“We are pleased to have developed a solution that is key to reach the ambitious climate goals,” added Seglem. “Combining the PCO2® technology with our first-class competence and experience within offshore operations enables us to offer a safe and regular marine transportation of liquefied CO2 to existing and new customers”.
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