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Large Scale CO2 Shipping

CO2 is not just hot air

CCS presents a huge logistical challenge

Large Scale CO2 shipping will enable the infrastructure evolution

I.M. Skaugen has the ships, know-how and commitment

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The conference on climate change at Bali in December 2007, once again put the spotlight on the role of CO2 as the root cause of global warming.

Climate change is beyond dispute – but at the same time it is recognised that coal and gas-fired power stations will continue to be a major source of power production in the coming decades, both in western and developing countries. Therein lays a conundrum.

Therefore, there must be a solution to the production of CO2 from these power stations – presently accounting for some 15 gigatons (15 000 000 000 t) annually. Carbon capture and sequestration (CCS) seems the most likely answer.

The EU’s pronounced support for the construction of ten-to-twelve CCS demonstrators by 2014 will certainly drive the development process. From these plants alone some 20-30 million tons of CO2 per year are expected to be captured. This is, however, just a drop in the ocean of the total volume required for Europe to reach its overall targeted reductions, hence a strategic view on CO2 transportation becomes important. Although many of the potential sites will be near to suitable storage locations, rightly, the selection of power plant locations will be influenced by the CCS logistics chain. Geology, geography and public acceptance will drive the demand for transport to include storage locations offshore. Therefore, CCS logistics require deep analysis and industrial initiative, incentivized by bold political decisions.

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The CCS Resolution

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Shipping will take the role as enabler - in particular in the short-term - and as feed-in for near-sea point sources more remote from natural storage sites. As a comparison, the oil and gas industry uses a combination of pipelines and ships, developed and adapted over a long time as and when business opportunities have appeared. It is likely that CCS logistics will move along the same route. Flexibility is critical in both the build-up phase and in operations. Shipping offers outstanding supply agglomeration, combining sources and storages in a dynamic architecture. As an example, shipping CO2 to sequestration can be combined with transportation in a pilot project for enhanced oil recovery (EOR). In another move, before industrial sites reach mature CO2 volumes, shipping can facilitate capture project decisions for independent projects and operators, thereby supporting the build-up of CO2 volumes that will ultimately justify large capacity trunk pipeline investments.

For shipping to play the enabler role in CCS logistics, flexible and cost competitive vessels are an imperative. IM Skaugen is alone in operating ships - already specified through their design - to carry liquid carbon dioxide at a temperature of minus 55o C and at a pressure around seven 6.5 Bar. These six ships in the range from 8.500 to 10.000 m3 are presently trading in ethylene but could be deployed in an early CCS pilot project.

Naturally, costs are largely a function of volumes and distances. Therefore, CCS will also require purpose-built hardware and new ships are currently under design, where the response to specific demands from CCS will be built-in. For larger volumes gas carriers up to 30.000 m3 could become economically viable.