NYK: Cost reduction is the most important factor in promoting CCS

Reducing the costs of marine transportation in the carbon capture and storage (CCS) value chain has been spotlighted as the most important factor in promoting CCS by Tsutomu Yokoyama, an Executive Officer at Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK).

NYK participated in the International & Indonesia CCS Forum 2024, an event promoting international discussion and cooperation on CCS technology, from July 31 to August 1 in Jakarta, Indonesia, where the company’s Executive Officer took part in a panel discussion with six industry participants from Indonesia and abroad.

During the panel discussion, Yokoyama presented NYK’s decarbonization strategy and CCS project and emphasized that cost reduction is the most important factor in promoting CCS.

He argued that it is necessary to determine the best transportation method for liquefied CO2 (LCO2) with stakeholders based on the overall economics since the costs involved in marine transportation are part of the entire value chain.

Being one of Southeast Asia’s largest oil and natural gas producers, Indonesia is actively investing in constructing carbon storage facilities and NYK is supporting the country in this endeavor.

In June this year, NYK signed a memorandum of understanding (MoU) with a marine logistics subsidiary of a state-owned oil and gas company Pertamina in Indonesia to collaborate on LCO2 and LNG, and jointly establish a ship-management company.

Through collaboration in the transportation business, we will develop a strong cooperative relationship with the Indonesian government and companies toward a low-carbon and decarbonized society, and by jointly establishing a ship-management company we will contribute to stable ocean transportation and create opportunities for training and employment for seafarers in the country, NYK said.

In 2021, the company joined the Global CCS Institute, an international think-tank established to promote the use of CCS technologies worldwide.

Some of NYK’s other CCS projects include a joint study with compatriot engineering company Chiyoda Corporation and its affiliate Knutsen NYK Carbon Carriers AS (KNCC) to quantitatively evaluate and verify the feasibility of the carbon capture, utilization, and storage (CCUS) value chain, including liquefaction, temporary storage, and marine transportation of CO2.