MOL Moves Into CO2 Shipping with Investment in Larvik Shipping

Japan's Mitsui O.S.K. Lines, Ltd. (MOL) said it will make its first foray into the liquefied CO2 ocean transport business through an investment in Larvik Shipping AS, a Norwegian ship management company for liquefied CO2 carriers.

Liquefied CO2 ocean transport plays a key role in carbon dioxide capture utilization and storage (CCUS) value chains as a means of effectively connecting collection sites with storage or usage sites. CCUS is drawing attention as a technology to collect and store CO2 or use it effectively, and 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 CO2 emissions by 2070. This is expected to contribute to a reduction of about 6.9 billion tons per year when carbon neutrality is achieved.

Larvik Shipping is one of very few companies in the world qualified to operate liquified CO2 vessels for food grade CO2 used mainly by hospitals, breweries and the food industry. The company has operated industrial liquefied CO2 vessels in Europe for over 30 years and has a strong track record in safe transport of liquefied CO2 and extensive cargo-handling know-how. Operation of liquified CO2 vessels for food grade CO2 will be a continued focus for Larvik Shipping going forward.

MOL will soon enter the liquefied CO2 ocean transport business, which is positioned for significant growth in step with the increasing adoption of CCUS. MOL will contribute to further expansion of the business by combining its accumulated expertise and technological capabilities in safe operation with Larvik Shipping's knowledge and solid experience. Both companies will discuss the adoption of larger ships with an eye toward expanding both upstream and downstream and in the CCUS value chain.