In focus: Offshore energy, shipping look to CCS and alternative fuels as they ramp up decarbonization efforts

The offshore energy and shipping industries are essential components of global trade and commerce, responsible for transporting goods and powering homes and businesses around the world. However, they are also significant contributors to greenhouse gas emissions.

As the world’s focus on reducing carbon emissions intensifies, there is a growing need for these industries to transform and decarbonize. The transformation of these industries will require a significant shift towards the adoption of alternative fuels and energy storage solutions, as well as the implementation of carbon capture and storage technologies.

Several recent developments point out that these sectors are moving forward with concrete projects to make this a reality.

Namely, the UK-headquartered energy giant BP has joined forces with Harbour Energy to develop a carbon capture and storage (CCS) project located close to the heavily industrialised Humber region. This CCS project could enable billions of pounds of investment while helping the UK to decarbonise and reach its net-zero goals.

Under the terms of the agreement, Harbour will continue as the operator of the Viking CCS project with a 60 percent interest while BP will acquire a 40 percent non-operated share. 

Meanwhile, the Danish Energy Agency has received two final offers related to Denmark’s first tender for the carbon capture, utilization and storage (CCUS) subsidy pool, with a contract expected in May.

The two final and binding offers came from Ørsted Bioenergy & Thermal Power and I/S Vestforbrænding.

The CCUS and NECCS subsidy pools were established thanks to a political decision that was made due to insufficient financial incentive to capture and store CO2 in Denmark.

While the NECCS pool supports only the capture of biogenic CO2 with a support period of eight years, the CCUS pool supports the capture of both fossil and biogenic CO2 and operates with a support period of 20+ years.

The role of CCS is gaining ground in the maritime space as well. Specifically, the Global Centre for Maritime Decarbonisation (GCMD) has tapped Lloyd’s Register to conduct a concept study for offloading of liquefied CO2 (LCO2) captured onboard ships.

The study will address safety and operational considerations, including articulating the temperatures and pressures under which this process would optimally take place and the different receptacles to be used for this purpose.

The outcome of the study can also provide insights for off-loading CO2 as cargo under currently less-established operating and storage conditions.

There have been some notable developments in the renewables sectors, with China launching its first semi-submersible offshore solar platform.

Specifically, CIMC Raffles has delivered the semi-submersible offshore solar platform to CIMC Jiguang Marine Technology (Yantai).

The platform is made up of an array of four single floating solar units, with a total installed capacity of 400kWp and a total deck area of ​​about 1,900 square meters.

On the alternative fuels front, Wartsila, Hoegh LNG, and partners are working on developing ammonia as a hydrogen carrier, with support from the Norwegian government. The goal is to create a safe and sustainable solution for transporting hydrogen, which could play a significant role in the energy transition of the shipping industry.

The project aims to develop a system to convert ammonia back to hydrogen, which will then be installed onboard a Höegh LNG vessel. This will provide a floating receiving terminal capable of being relocated as needed, requiring minimal use of coastal land and a solution resulting in lower overall cost, improved safety and competitive hydrogen prices.

Another interesting development in the hydrogen space is the liquid hydrogen swappable storage solution for ships, currently in the making. This innovative solution involves storing liquid hydrogen in portable, swappable tanks that can be exchanged during a vessel’s port call. The technology has the potential to reduce the costs and complexities associated with large-scale hydrogen storage on ships.

The potential of ammonia as a fuel for ships is also being explored at an accelerating pace. Japanese shipping major Mitsui O.S.K. Lines (MOL), together with compatriot companies Tsuneishi Shipbuilding and Mitsui E&S Shipbuilding Co. (MES-S) received approval in principle for ammonia-fuelled liquified gas carrier design from two classification societies, namely ClassNK and Lloyd’s Register (LR). According to MOL, this is the first case ever that two classes of AiP, ClassNK and Lloyd’s, have been issued.

Japanese industry majors are also investigating the possibility of utilizing Namikata Terminal in Imabari City as an ammonia supply hub.

The project will involve cooperation between Shikoku Electric Power Company, Taiyo Oil Company, Taiyo Nippon Sanso Company, Mazda Motor Corporation, Mitsubishi Corporation, Namikata Terminal Company and Mitsubishi Corporation Clean Energy.

Finally, the container shipping industry has moved past the design stage and achieved a massive milestone with the launching of Maersk’s first methanol-powered ship at Hyundai Mipo Dockyard.

The ship is the company’s first carbon-neutral vessel and it will join its fleet in the summer of this year.

The ship, with a capacity of around 2,000 TEU, was ordered back in 2021. While the vessel will be able to operate on standard VLSFO, the plan is to operate it on carbon-neutral e-methanol or sustainable bio-methanol from day one.