Japanese shipping heavyweight Mitsui O.S.K. Lines (MOL) has decided to invest into Larvik Shipping, a Norwegian ship management company for liquified CO2 carriers.
The investment marks MOL’s entrance into a completely new market of ocean transportation of liquefied CO2.
The business sector plays a central role in carbon dioxide capture utilization and storage (CCUS) value chains as a means of connecting collection sites with storage or usage sites.
Larvik Shipping is one of very few companies in the world qualified to operate liquified CO2 vessels for food grade CO2, which will continue to be the company’s focus moving forward. Food Grade CO2 is used mainly by hospitals, breweries, and the food industry.
“The combination of the expertise of the two companies will enable them to contribute to carbon dioxide capture utilization and storage (CCUS) projects around the world,” Larvik Shipping said in a statement.
CO2 carbon capture and storage is starting to spark considerable interest as a step toward realizing a low-carbon society.
According to a report by the International Energy Authority (IEA) , CCUS targets a 15% reduction in cumulative CO 2 emissions by 2070. This is expected to contribute to a reduction of about 6.9 billion tons per year when carbon neutrality is achieved.
“MOL will soon enter the liquefied CO 2 ocean transport business, which is positioned for significant growth in step with the increasing adoption of CCUS,” the company said.
The Japanese shipping major said it plans to further expand the business by combining its accumulated expertise and technological capabilities in safe operation with Larvik Shipping’s knowledge and solid experience.
As part of the cooperation, the two companies will discuss the adoption of larger ships with an eye toward expanding both upstream and downstream and in the CCUS value chain.
The investment is part of MOL’s Rolling Plan 2020 management plan aimed at contributing to the achievement of a decarbonized society.
As part of its increased focus on sustainability in 2021 , MOL is launching a dedicated division to plan and promote the company’s environmental and sustainability strategies in April.