INEOS, Royal Wagenborg sign landmark CO2 carrier agreement to step up CCS game in the EU

November 12, 2024, by Naida Hakirevic Prevljak

Dutch shipowner and operator Royal Wagenborg and INEOS Energy, a London-based E&P business, have signed an agreement on the delivery of a new CO2 carrier.

The agreement was signed during a royal visit by HM King Willem-Alexander of the Netherlands to Copenhagen, Denmark, and in the presence of HM King Frederik of Denmark on November 12, 2024.

Under the deal, INEOS Energy will buy the CO2 carrier newbuild based on Wagenborg’s EasyMax design.

To be built by the Dutch shipyard Royal Niestern Sander, the CO2 carrier is said to mark “a significant step towards advancing carbon capture and storage (CCS) within the European Union”.

“The lack of dedicated CO₂ carriers has been a bottleneck for advancing CCS projects within Europe. The collaboration between INEOS and Royal Wagenborg serves as a breakthrough moment for the EU’s climate goals, offering a viable solution for large-scale CO₂ transport. The agreement highlights the commitment of INEOS, Royal Wagenborg, and the governments of the Netherlands and Denmark to achieving a sustainable and low-carbon future,” David Bucknall, CEO INEOS Energy, commented.

As informed, the purpose-built CO2 carrier, designed to meet “the highest” standards of safety and efficiency, will facilitate large-scale transport of CO2 to the Greensand storage site in the Danish North Sea, led by INEOS with its partners Harbour Energy and Nordsøfonden.

Reflecting on INEOS’ ambition to establish the first CO2 storage within the EU in Greensand by 2026, Mads Weng Gade, Head of INEOS Energy DK, described the new agreement as “a very important step towards the establishment of the full value chain of CCS on an industrial scale.”

“Today was another important step in the direction of realising the enormous potential of Project Greensand and CO2 storage in the North Sea. If everything goes according to plan the CO2 storage capacity will be around 8 million tonnes per year by 2030. That’s almost one fifth of Denmark’s annual emissions. This will be a key part of reaching Denmark’s ambitious climate goals – and hopefully also of making Denmark a central European CO2-hub. It’s win-win all round, when climate action and good business go hand in hand,” Anne H. Steffensen, CEO of Danish Shipping, emphasized.

Project Greensand has already marked “a world-first achievement” by demonstrating the safe, cross-border transport of CO2 for injection into a depleted oil field. In March 2023, HM King Frederik of Denmark authorized the first injection of CO2 into Danish subsoil in the North Sea, marking a crucial advancement for sustainable carbon management in the region.

The EasyMax concept

The long-term agreement with INEOS marks “the first” construction and deployment of a dedicated CO2 carrier for Wagenborg, according to the company.

The EasyMax concept –– developed by Royal Wagenborg and Royal Niestern Sander—has a low CO2 footprint per tonne/cargo, placing it at the top of the global Energy Efficiency Design Index. Wagenborg received the KVNR Maritime Shipping Award for this ship design in 2017, partly because of its advanced fuel efficiency.

With a length of 149.95 meters, a beam of 15.90 meters and a draught of 8.6 meters, the EasyMax series is the biggest ship type ever built in the north of the Netherlands.

A month ago, Wagenborg ordered its sixth fuel-efficient EasyMax multipurpose vessel at Royal Niestern Sander. The 14,000 dwt MPP unit is planned for delivery in 2026.