Singapore’s Seatrium has signed a Letter of Intent with Solvang ASA to retrofit carbon capture systems across the Norwegian shipowner’s fleet of gas carriers.
The agreement, announced alongside Seatrium’s half-year results on 31 July, builds on the successful delivery of a 7MW Wärtsilä carbon capture and storage (CCS) system onboard the ethylene carrier Clipper Eris earlier this year. It was the first vessel globally to be fitted with a full-scale, turnkey CCS retrofit.
According to Seatrium CEO, Chris Ong, the new agreement covers a fleetwide CCS retrofit programme that will serve as a foundation for expanding the shipyard group’s role in the emerging maritime decarbonisation value chain. Solvang currently operates a fleet of 20 vessels, including six semi-refrigerated/ethylene carriers, eight large gas carriers, and six VLGCs.
The first retrofit under the Letter of Intent is expected to begin in late 2026 and will target Solvang’s next-generation VLGCs, which have already been designed with CCS integration in mind.
Alvin Gan, Executive Vice President of Seatrium Repairs and Upgrades, said in June that the partnership ‘demonstrates our commitment to advance sustainable solutions in the maritime decarbonisation journey. Building on the success of the pioneer project together on Clipper Eris, we are honoured by Solvang’s trust in Seatrium to take the next step in their critical CCS programme.’
The announcement comes as Seatrium reports a sharp rise in profits, driven by increased project efficiency and a diversified orderbook. The group posted net earnings of SGD144 million for the first half of 2025, up more than 300% year on year, on revenues of SGD5.4 billion, with gross margins rising to 7.4%, up from 3.7% a year prior.
Of Seatrium’s SGD18.6 billion net orderbook reported at the end of June 2025, SGD6.3 billion is linked to renewables and cleaner energy solutions. Ong commented that the Solvang CCS deal illustrates Seatrium’s ability to convert long-term client relationships into high-value decarbonisation projects.
Ong told investors, ‘Despite a volatile macro environment, rising global energy demand and an increased focus on energy security continue to shape industry priorities and underpin a sizeable pipeline for energy infrastructure assets.
‘Our healthy order book continues to provide revenue visibility, and we remain confident in delivering long-term value to all our stakeholders by building a profitable and resilient business.’
Alongside this, Seatrium is preparing for growth in the liquefied CO2 (LCO2) shipping sector, where its subsidiary LMG Marin developing vessel designs for what Ong estimates could become a US$6 billion market by the early 2030s.
While acknowledging short-term pressure from weaker shipping markets and LNG price volatility, Ong said the company’s continued focus on complex, specialised retrofits will support long-term growth. Recent highlights include the conversion of the Karmol LNGT Powership Antarctica, the fourth floating storage and regasification unit (FSRU) that Seatrium has delivered for Kinetics.
