Japan’s NYK and HEPCO team up on OCCS demonstration project  

Japanese shipping line NYK and compatriot utility Hokkaido Electric Power (HEPCO) have unveiled plans to launch a demonstration project in Tomakomai involving onboard carbon capture and storage (OCCS).

Under a memorandum of understanding (MoU), the parties will jointly explore demonstration projects to advance maritime transport decarbonisation.

The three-year initiative, running through fiscal 2028, will focus on the design and installation of pilot equipment aboard the coal carrier Pirika Moshiri Maru, owned by NYK and operated for HEPCO. The scope of the initiative will include how to handle captured CO2 and its potential uses.

Tomakomai is emerging as a key hub for carbon neutrality, hosting large-scale CCS demonstration projects and ongoing studies addressing these challenges. In February 2025, Japan’s Ministry of Economy, Trade and Industry designated a portion of the offshore area of Tomakomai City, Hokkaido, as the first “specified area” under the CCS Business Act.

Building on this foundation, NYK and HEPCO have agreed to combine their expertise to jointly study the OCCS demonstration to reduce CO2 and greenhouse gas (GHG) emissions from shipping and develop carbon capture, utilisation, and storage (CCUS) value chains.

NYK intends to deepen its understanding of OCCS technologies and pave the way for their wider commercial deployment.

This MoU follows an announcement in March that NYK would collaborate with its affiliate NYK Carbon Carriers and Chiyoda Corp on CCS projects worldwide. The tripartite partnership aims to develop and commercialise CCS business opportunities both in Japan and overseas.

Reducing GHG emissions from vessels in transit is widely regarded as essential to decarbonising international shipping. OCCS, which includes capturing, liquefying, and storing CO2, has gained attention as a promising solution. However, key challenges remain, particularly around the handling, storage, and downstream unloading and processing of captured CO2.