Japanese shipping major Nippon Yusen Kabushiki Kaisha (NYK) and compatriot energy titan ENEOS have signed an agreement for the sale and purchase of marine fuel with carbon dioxide (CO2) removal credits (CDR credits) created via direct air capture with carbon storage (DACCS).
DACCS is one of the negative emission technologies that achieve the removal of those greenhouse gases (GHGs) which cannot be slashed by energy conservation or transition to next-generation fuels, making it a ‘suitable’ solution to achieving net zero emissions, NYK explained.
As disclosed, under the terms of the agreement, ENEOS is set to procure CDR credits from U.S.-based carbon capture, utilization and sequestration (CCUS) company 1PointFive’s STRATOS direct air capture plant in Texas, which is scheduled to commence operations in 2025.
According to NYK, the credits themselves are generated by removing carbon dioxide from the atmosphere and storing it underground. ENEOS will reportedly then sell the credits, together with the marine fuel it supplies, to the Japanese shipping player starting in 2028.
Having set their sights on the maritime industry’s overarching decarbonization goals, both NYK and ENEOS have shared that the two companies will continue to promote the development and application of GHG emissions reduction technologies, such as DACCS, to “contribute to the realization of a carbon-neutral society.”
For NYK, these efforts are seen through the company’s initiatives to maximize energy efficiency and transition from traditional fuels to next-generation fuels like liquefied natural gas (LNG) , ammonia , and methanol .
In addition to this, as per the company, residual emissions that cannot be eradicated through ‘conventional’ methods are planned to be removed by offsetting emissions using CDR credits. This is expected to give NYK another boost toward its net zero target.
What is more, just recently, NYK shook hands with compatriot Yusen Logistics in a joint endeavor to start using a digital platform for GHG emission reductions.
Specifically, NYK and Yusen Logistics are set to use the platform—provided by the Netherlands-based logistics decarbonization-oriented startup 123Carbon—to support the cutting of Scope 3 GHG emissions by allocating to the platform users the GHG reductions achieved via the use of alternative fuels in ocean, air and land transport services and issuing certificates that confirm this.
As informed, the ENEOS Group has also been working on not just minimizing and absorbing its own CO2 emissions via forest absorption, DACCs and carbon capture and storage (CCS) but also on helping slash overall emissions by promoting the transition from traditional to clean fuels such as hydrogen, biofuels and renewable energy.
One notable example of these efforts took place in October 2024, when the Japan Organization for Metals and Energy Security (JOGMEC), ENEOS Corporation, JX Nippon Oil & Gas Exploration Corporation, Electric Power Development (J-POWER), and West Japan Carbon Dioxide Storage Survey, a joint venture set up by the three companies in February 2023, signed a consignment contract for engineering design work related to a CCS project.
It is understood that the project intends to capture and store approximately 1.7 million tons of CO2 per year, sourced from ENEOS’s oil refineries and J-POWER’s thermal power plants located in the Setouchi and Kyushu regions.
At the beginning of December, the energy heavyweight reached a decision to create a green hydrogen production plant through a staggering $200 million investment in Queensland, Australia. The plant is expected to produce up to 680 kilograms of green hydrogen per day starting from 2026.