Development of long-distance and large-scale carbon capture and storage (CCS) value chain using liquefied CO2 ship transportation

Carbon capture and storage (CCS) is central to clean energy transition. Globally, potential aggregated carbon dioxide (CO2) storage resource capacity is ~13,000 billion tonnes. Assuming global greenhouse gas emissions of 51 billion tonnes per annum, CO2 storage capacity equates to 250 years of global emissions reduction. While there is significant momentum to deploy CCS technology for meeting Paris Agreement targets, the key challenge for offering CCS to all industrial sectors is that many major CO2 emission sources are located hundreds of kilometres away from geological storage sites. To address this key challenge, there is a need to develop a long-distance and large-scale CCS value chain that utilises liquefied CO2 (LCO2) ship transportation. This paper discusses key technical, commercial, and regulatory considerations that must be addressed in parallel for developing such a CCS value chain. More specifically, it will cover the following: (1) technical – CO2 liquefaction condition, CO2 supply specification and LCO2 ship parcel size; (2) commercial – business model (ownership of CO2 retained by emitters or transferred to CCS project proponent), CO2 supply or CCS facility lease terms and conditions; and (3) regulatory – domestic versus transboundary projects and associated needs for policy and legislative underpinning.