Mitsui O.S.K. Lines, Ltd. - Experts & Thought Leaders

ABS has granted approval in principle to an innovative liquefied carbon dioxide (LCO2) floating storage and injection unit (FSIU) designed by MODEC, Inc. (MODEC) in collaboration with Mitsui OSK Lines Ltd. (MOL). Tailored to the growing demands of the global carbon capture, utilisation and storage (CCUS) value chain, the design eliminates the need for onshore facilities, bringing LCO2 storage and injection offshore. With a design capable of injecting up to 10 million tonnes of CO2 annually and featuring a minimum total tank storage capacity of 100,000 cubic meters, the FSIU delivers a solution built to scale with global carbon capture efforts. ABS completed design reviews based on class and statutory requirements. Carbon capture efforts  “Carbon capture is advancing rapidly, with the International Energy Association projecting global capacity to reach 435 million tonnes per year by 2030.” “Floating storage and injection units, such as MODEC's innovative design, will be important for enabling the safe and efficient sequestration of captured carbon. This concept is a step forward in delivering the global carbon value chain and ABS is proud to support its development,” said Miguel Hernandez, ABS Senior Vice President, Global Offshore. Flexible deployment This offshore process reduces reliance on land-based infrastructure and enables flexible deployment Designed to operate directly at the injection site, the unit receives low-pressure LCO2 from transport carriers, converts it to high-pressure storage onsite, and then injects it into subsea wells for permanent storage.  This offshore process reduces reliance on land-based infrastructure and enables flexible deployment across various injection sites. Key features of MODEC’s design include tandem loading at the aft combined with simultaneous side-by-side loading at the midship port side, enabling continuous injection operations without interruption. To minimise emissions from its own operations, the FSIU incorporates diesel engine generators integrated with onboard carbon capture technology. CCUS value chain Arata Kamishohara, VP Business and Project Development at MODEC noted: “While this FSIU is a new concept, each component on the unit is not necessarily new to MODEC.” “MODEC has experience with CO2 injection (removed from pre-combustion produced gas) and dual (oil) offloading system. All the utility systems are similar to what we do on FPSOs every day.” “We collaborated with MOL, who cover the transportation portion of CCUS value chain, for interfaces between LCO2 carriers and the FSIU. With this, we are planning to achieve $5/tCO2 or less, which I don’t think is a stretch target.” Carbon capture technologies As industries around the world focus more attention on carbon capture technologies and reduced carbon emissions, ABS continues to drive innovation and safety in CCUS technologies. From analysing cutting-edge designs to providing comprehensive technical guidance, ABS is committed to supporting robust safety and performance standards in the growing carbon value chain.

Watson Farley & Williams (WFW) advised a consortium of lenders on an ECA-backed JOLCO financing for Ocean Network Express Pte. Ltd. (ONE) to finance four newbuild container vessels. The consortium comprised BNP PARIBAS (acting through its Tokyo Branch and as ECA Coordinator), The Hongkong and Shanghai Banking Corporation Limited, Tokyo Branch and Citibank, N.A., Tokyo Branch (as mandated lead arrangers) as well as Japanese export credit agencies Japan Bank for International Cooperation (“JBIC”) and Nippon Export and Investment Insurance (“NEXI”). Next generation fuel ships   The four 13,700 TEU container vessels are under construction at Nihon Shipyard  The deal marks JBIC and NEXI’s first vessel-related JOLCO financing. Equity was arranged by Financial Partners Group (FPG). The four 13,700 TEU container vessels are under construction at Nihon Shipyard and Imabari Shipbuilding in Japan and are ammonia- and methanol-ready. They are also designed to accommodate the future installation of carbon capture devices, aligning with ONE’s commitment to introduce next generation fuel ships to its fleet.  Liner shipping companies ONE – established in Singapore and jointly owned by Japanese shipping lines Nippon Yusen Kabushiki Kaisha, Mitsui O.S.K. Lines, Ltd., and Kawasaki Kisen Kaisha, Ltd. – is one of the world’s largest liner shipping companies, operating more than 260 vessels with a fleet capacity of approximately two million TEU. The WFW Tokyo Assets and Structured Finance team that advised the ECAs and lenders was led by Partners Simon Collins and Shusuke Fukunaga, supported by Counsel Christian Orton and Paralegals Cameron Jeon and Saira Oshiro. WFW’s New York and Singapore offices also supported the transaction. Carbon efficient vessels Simon commented: “We are very pleased to have advised our valued clients on this ground-breaking deal, which marks JBIC and NEXI’s first foray into JOLCO financing in the shipping sector”. Shusuke added: “It was gratifying to advise the Japanese ECAs and lenders on a transaction that supports both the expansion of ONE’s fleet with fuel and carbon efficient vessels as well as Japan’s market-leading Japanese shipbuilding industry and maritime cluster more broadly”.

DNV has awarded a General Approval for Ship Application (GASA) certificate to Mitsui O.S.K. Lines, Ltd., (MOL), MISC Berhad (MISC), PETRONAS CCS Ventures Sdn. Bhd. (PCCSV), and Shanghai Merchant Ship Design and Research Institute (SDARI), for their jointly developed 62,000 cubic metres (cbm) liquid carbon dioxide (LCO2) carrier design. This milestone builds upon an Approval in Principle (AiP) awarded by DNV in 2023 and highlights the growing role of Carbon Capture and Storage (CCS) in Asia’s decarbonisation efforts. Several innovative features A key part of the design is the cargo containment system, which utilises advanced materials The vessel design includes several innovative features designed to enhance the long-haul transport of LCO2. A key part of the design is the cargo containment system, which utilises advanced materials for greater safety and efficiency, and also includes a reliquefaction system for pressure and temperature regulation. Additional elements of the design include: an energy-saving propulsion system, optimised hull design, and LNG as fuel to boost fuel economy and environmental performance. Low-carbon future CCS is gaining momentum as a promising solution to help countries transition to a low-carbon future across Asia Pacific. Several countries, including Malaysia, Australia, Japan, and Singapore, are investing in the development of infrastructure, launching projects, and forging cross-border partnerships to accelerate CCS deployment. GASA certification Daisuke Fujihashi, General Manager, Carbon Solutions Business Development Unit, Mitsui O.S.K. Lines, Ltd., said: “The LCO₂ carrier is an indispensable component in building a cross-border CCS value chain across the Asia-Pacific region.” “This GASA certification awarded by DNV not only demonstrates the feasibility of safe and efficient CO2 transport but also marks a significant step forward in the transition toward a decarbonised society, backed by internationally recognised design credibility.” “At Mitsui O.S.K. Lines, Ltd., we regard the LCO₂ carrier not merely as a means of transportation, but as a vital ‘artery' for the social implementation of CCS. Moving forward, we will continue to work closely with our partner companies to contribute to the development of sustainable maritime transport infrastructure that supports global decarbonisation efforts.” LCO₂ carriers Zahid Osman, President and Group CEO of MISC, said: “As a critical enabler, LCO₂ carriers help address one of the biggest gaps in the CCS value chain, particularly when emitters lack access to nearby sequestration sites.” “By ensuring safe and efficient maritime transport and storage of CO₂, we play our part in managing societal emissions in a practical and scalable way. This aligns seamlessly with MISC’s long-term #deliveringProgress strategy, focusing on providing safe, efficient and reliable maritime solutions that meet the world’s evolving needs.” “We firmly believe that meaningful partnerships are key to turning shared ambitions into reality, and we thank DNV for this recognition as we work together towards a more sustainable future.” Scalable LCO₂ carrier design Nor A’in Md Salleh, CEO of PETRONAS CCS Solutions, a wholly owned subsidiary of PCCSV, said on behalf of PCCSV: “Developing a scalable LCO₂ carrier design is essential to realising the offering of cross-border CCS as a solution to the hard-to-abate industries in the region.” “This certification reflects our commitment to safe, efficient carbon transport aligned with broader decarbonisation goals. DNV’s rigorous review and validation of the design have been instrumental in strengthening stakeholder confidence and accelerating progress toward a robust CCS value chain.” CCS value chain Antony M Dsouza, Senior Vice President & Regional Manager, Southeast Asia, Pacific & India, Maritime at DNV, said: “LCO2 carriers are a vital link in the emerging CCS value chain, enabling the safe and efficient transport of captured carbon across borders.” “With storage and capture capacity expected to quadruple by 2030, scalable and reliable ship designs will be key to unlocking this growth. Through this collaboration, we are proud to bring together DNV’s technical expertise and our partners’ innovative drive to support the development of a robust carbon transport infrastructure for the region.”