〆Could these LCO2 carriers be the key to reducing carbon emissions in Japan’s steel and power industries?
Mitsui O.S.K. Lines (MOL) has agreed to establish a joint venture with a subsidiary of MISC Berhad, the shipping company of Malaysia’s state-owned energy group, PETRONAS. The purpose of this joint venture is to own liquified carbon dioxide (LCO2) carriers. The ownership structure of the new company will be MOL with a 50% stake, MISC with 40%, and PETRONAS CCS Ventures (PCCSV), a wholly-owned subsidiary of PETRONAS, with 10%. Future investments in liquefied CO2 carriers are under consideration.
The Board of Directors of MISC Berhad agreed on 10 May 2024 entered into a Joint Venture Agreement (“JVA”) with PETRONAS CCS VENTURES SDN. BHD. (“PCCSV’) and MITSUI O.S.K. LINES, LTD. (“MOL”) to establish a joint venture company (“JV Co”) to procure and own liquified carbon dioxide (“LCO2”) carriers to transport LCO2 to CO2 storage sites in Malaysia.
The transportation of liquefied CO2 is gaining attention as a means for Japanese steel manufacturers and power companies to reduce carbon dioxide emissions. In Europe, the focus is on storing carbon dioxide within the region. Meanwhile, Japan plans to use liquefied CO2 carriers to transport CO2 and utilize the underground cavities left after gas extraction in Malaysia’s LNG projects, leveraging Malaysia’s status as an LNG-exporting country.
Estimates vary among stakeholders, but some predict that around 50 new long-distance liquefied CO2 carriers will be needed in the future. Steel manufacturers have announced plans to shut down blast furnaces in conjunction with renovation periods and convert to electric arc furnaces using scrap iron as raw material. Power companies are implementing measures such as co-firing coal-fired power plants with ammonia to reduce carbon dioxide emissions.
In September 2023, Mitsui O.S.K. Lines (MOL) and the PETRONAS group reached a basic agreement to establish a joint venture aimed at owning liquefied CO2 carriers. Based on this agreement, both companies have now agreed to set up the joint venture in Malaysia.
Reflecting on the history, Mitsui O.S.K. Lines (MOL) signed a memorandum of understanding with PETRONAS in February 2022. Since then, both companies have been exploring liquefied CO2 transportation methods and other measures to build a CCS (Carbon Capture and Storage) value chain.
PETRONAS is advancing the realization of its CCS projects by utilizing depleted gas fields as CO2 storage sites. To commercialize CCS projects, PETRONAS is collaborating with Japanese energy companies, trading houses, and shipping companies.
In October 2023, PETRONAS signed a memorandum of cooperation with Japan’s Ministry of Economy, Trade and Industry to facilitate the cross-border transport and storage of CO2. This agreement aims to transport CO2 separated and captured from Japanese power plants and refineries to storage sites in Malaysia.
〆商船三井はMISC Berhad（MISCバーハッド）と液化CO2輸送船（Liquified Natural Gas Carriers）の保有を目的とした合弁会社を設立することで合意した。
〆LCO2輸送船は日本の鉄鋼、電力の二酸化炭素排出の切り札となるか。
商船三井はマレーシアの国営エネルギー会社ペトロナスグループの海運会社MISC Berhadの子会社と液化CO2（二酸化炭素）輸送船の保有を目的とした合弁会社を設立することで合意した。新会社への出資比率は、商船三井50%、MISC40%、ペトロナスの100%子会社であるペトロナスCCSベンチャーズ（PCCSV）10%になる。液化CO2輸送船への投資を今後検討していく。
MISC Berhadの取締役会は2024年5月10日、PETRONAS CCS VENTURES SDN. BHD、MITSUI O.S.K. LINES, LTD.との間で、マレーシア国内のCO2貯留地へ液化炭酸ガスを輸送するための液化炭酸ガス輸送船を調達・保有することを目的とした合弁会社を設立することで合意した。