Buildout Continues of Emerging Category of CO2 Carriers for CCS

Why It Matters

Specialized CO₂ carriers remove a critical bottleneck in CCS, enabling large‑scale carbon removal projects and creating a new maritime supply chain that will attract significant investment as governments chase 2050 net‑zero targets.

Key Takeaways

• Northern Lights targets 5 Mt CO₂ capacity by 2028
• Northern Phoenix 7,500 cbm ship chartered by Bernhard Schulte
• Carbon Destroyer 1 transports 5,000 t CO₂, 600,000 t annually
• Japan's Shin Kurushima secures ClassNK approval for CO₂ vessel concept
• KLINE and MISC order new CO₂ carriers for 2028‑2029 rollout

Pulse Analysis

The push to decarbonize heavy industry has turned carbon capture and storage (CCS) into a fast‑growing market, and a critical bottleneck is the safe, large‑scale transport of liquefied CO₂ from capture sites to offshore reservoirs. Until recently, the maritime sector relied on retrofitted tankers, but a dedicated class of CO₂ carriers is now emerging, built from the keel up to handle the unique thermodynamic and safety requirements of cryogenic CO₂. This shift mirrors the broader trend of specialized vessels—such as LNG carriers and offshore wind support ships—meeting niche energy‑transition needs.

Northern Lights, the joint venture of Equinor, Shell and TotalEnergies, leads the segment with its first commercial vessel slated for 2025 and a roadmap to 5 million tonnes per year by 2028. The fleet’s newest addition, the 7,500 cbm Northern Phoenix, runs on LNG and features a rotor‑assisted propulsion system that cuts fuel consumption while maintaining precise maneuverability for port calls. Recent contracts with ship owners K‑LINE, MISC Berhad and Mitsui O.S.K. Lines will deliver three 12,000 cbm ships between late 2028 and early 2029, expanding capacity and creating a nascent supply chain for CO₂ logistics.

Europe’s momentum is matched by projects elsewhere. Royal Wagenborg’s Carbon Destroyer 1—a 150‑metre DP2 shuttle—will move up to 5,000 tonnes of liquefied CO₂ per voyage between Denmark’s Esbjerg hub and the Nini Fields, delivering roughly 600,000 tonnes annually. In Japan, Shin Kurushima Sanoyasu Shipbuilding secured ClassNK’s approval‑in‑principle for a concept that docks with a “Socket SPAR” offshore storage structure, a design that could accelerate the country’s 2050 net‑zero roadmap. Analysts estimate that achieving the 1 gigaton annual CO₂ capture target will require dozens of such vessels, prompting investors to watch the emerging CO₂ carrier market as a strategic component of the global CCS value chain.