NYK and Knutsen establish liquefied CO2 transportation and storage business

The business will use the Knutsen developed PCO2® technology which allows transport of liquified CO2 at ambient temperatures. The scalable technology is based on Knutsen’s PNG technology developed more than 20 years ago. Transporting CO2 at ambient temperatures reduces the need for compression and heating which are required for cryogenic and low temperature solutions.

The companies expect that the demand for liquified CO2 carriers to grow rapidly in response to increases demand for transporting liquefied CO2 to sites where it will be stored or used.

In April 2021, the Knutsen Group and Horisont Energi signed a contract to complete a design for transport of pressurised liquefied CO2 using PCO2® technology for direct offloading offshore, a key part of Horisont Energi’s Polaris carbon storage project off the coast of Northern Norway. The Polaris project is expected to have a total carbon storage capacity in excess of 100 million tons, which is equivalent to twice Norway’s annual greenhouse gas emissions.

New company structure

NYK and the Knutsen Group will each hold 50% stake in the new company, which has been named Knutsen NYK Carbon Carriers AS (KNCC). Being part of the same group as shuttle tanker operator Knutsen NYK Offshore Tankers (KNOT), KNCC has unique competence for liquefied CO2 loading and offloading onshore and offshore. Through KNCC, the companies plan to operate small, medium and large liquefied CO2 vessels. KNCC will also build and operate low/mid pressure vessels based on other technologies.

Svein Steimler, president and CEO of NYK Group Europe and Trygve Seglem, owner and president of the Knutsen Group, will be the chair and vice-chair of the Board of Directors of KNCC. Anders Lepsøe has been appointed chief executive officer of the company. He has a broad international business background with extensive experience from the oil & gas, financing, and shipping industries.