Yinson Production and ‘K’ Line Energy Shipping (UK) have signed a strategic agreement to jointly develop floating infrastructure for the transportation and injection of liquefied CO2 (LCO2). The memorandum of understanding (MoU), announced this week, aims to address the bottlenecks in CO2 transportation logistics for carbon capture and storage (CCS) projects with an emphasis on the European market.
The partnership will focus on two key assets: an LCO2 carrier and a floating storage and injection unit (FSIU). Both are components that are integral to the development of scalable offshore CO2 storage infrastructure, especially in geographies where space constraints or long pipeline distances complicate the effective use of traditional onshore infrastructure. The companies have cited the Havstjerne project in Norway, which is 40% owned by Stella Maris CCS, a Yinson subsidiary, as a potential early application for the proposed floating injection solution.
Yinson, the Malaysia-based developer and operator of floating production, storage, and offloading (FPSO) vessels, and ‘K’ Line, the Japanese shipping major with established CO2 shipping operations through its UK subsidiary, have collaborated on FPSO projects since 2018. Joint ventures in Brazil and Ghana have laid the groundwork for the current initiative.
‘This collaboration with ‘K’ LINE builds on our longstanding relationship and complements our deep knowledge of offshore marine systems,’ said Lars Gunnar Vogt, Chief Technical Officer at Yinson Production. ‘By combining our FPSO and offshore engineering expertise with ‘K’ LINE’s proven CO2 shipping capabilities, we are well positioned to contribute to the development of innovative services that will enable large-scale carbon transport and storage.’
For ‘K’ Line, the MoU builds on its key role in the Northern Lights project, the world’s first commercial CO2 transport and storage service. The company manages a fleet of LCO2 carriers, including the Northern Pioneer, which recently completed its inaugural CO2 loading.
Kei Onishi, Corporate Officer of ‘K’ Line, said of the agreement: ‘We are developing an offshore unloading capability and bespoke transport solutions to serve a broader range of CO2 storage sites. This will complement traditional port-to-port transport models for the CCS value chain and offer emitters greater flexibility in meeting their decarbonization goals.’
This announcement follows a significant equity raise by Yinson Production, with the company recently closing a US$1 billion investment round backed by the Abu Dhabi Investment Authority, British Columbia Investment Management Corporation, and RRJ Group. This capital injection will strengthen Yinson’s position as it looks to expand its low-carbon and zero-emissions FPSO concepts, including the forthcoming Agogo unit, which is set to operate offshore Angola.
Yinson states that its decarbonisation roadmap includes achieving carbon neutrality by 2030 and net-zero emissions by 2050. The company believes that integrating CCS logistics into its portfolio is a logical extension of its FPSO business, aligning with both technological capabilities and investor expectations.
