Navigator Gas-Bumi Armada JV targets LCO2 shipping fleet for Uniper

US-listed gas carrier fleet owner Navigator Holdings and Malaysia-based floating infrastructure firm Bumi Armada have inked a deal with German energy giant Uniper to develop a carbon shipping fleet in the UK. 

The memorandum of understanding (MoU) for the project aims to transport captured CO2 from Uniper’s proposed carbon capture plant at the Grain power station in Kent, in the UK.

The venture will deploy specialised LCO2 shuttle tankers capable of loading and unloading liquefied CO2 cargoes at either floating or fixed terminals. This flexible approach targets industrial processes lacking access to pipeline infrastructure.

Navigator Gas and Bumi Armada are operating through a 50/50 joint venture (JV) called Bluestreak CO2, which will leverage Navigator’s gas transport expertise and Bumi’s operational experience with a major floating production system in the North Sea to aid Uniper’s decarbonisation efforts.

The collaboration seeks to establish a comprehensive CO2 value chain, from capture to storage, supporting broader greenhouse gas reduction goals. Uniper, aiming for carbon neutrality by 2040, views this as a key step in transforming its operations.

“This collaboration will play an important role in helping to identify a shipped solution to safely transfer the captured CO2 from Grain for permanent offshore storage. Flexible CO2 transport solutions are needed to decarbonise essential industrial processes, which are not close to pipeline and subsea storage locations and will be critical to get first-of-a-kind non-pipeline projects like Grain Carbon Capture into operation,” Uniper’s UK country chairman Mike Lockett said.

Industry observers note this partnership could play a crucial role in advancing global decarbonisation efforts through innovative carbon capture and storage solutions.

In announcing the Bluestreak CO2 joint venture in 2023, Navigator Gas and Bumi Armada cited estimates "the potential market in the United Kingdom alone is over 30M tonnes of CO2 per annum from emitters who are not proximate to existing awarded carbon capture, usage and storage clusters".

"Navigator and Bumi Armada are in initial discussions with a number of emitters and if successful, the first shipment of CO2 is anticipated by the parties to take place three years after taking final investment decision," the statement said.

Navigator Gas and Bumi Armada representatives also discussed their joint venture plans at a recent Riviera event in London.

Speaking at Riviera’s CO2 Shipping & Terminals Conference 2024, Navigator Gas business development lead for CO2 shipping Nina Lynn said the Bluestreak CO2 joint venture was in talks with Uniper and the company will be able to offer shipping along with floating buffer storage at both the capture site and at the final storage site, as well as injection to depleted reservoirs. 

"The Bluestreak assets will be redeployable to other locations if needed, reducing the risk of stranded assets and enabling that flexibility," Ms Lynn said, discussing the company’s envisioned assets, including vessels.

Bluestreak CO2 has, according to Ms Lynn, as many as 15 vessel designs in process. 
"The pieces of this midstream puzzle are here already today. They just need to be reconfigured to fit the industry needs. Bluestream has been working closely with a range of emitters and storage companies, including Uniper... to tailor these pieces for their aims. And as I mentioned, we developed a portfolio of inhouse designs for liquefied CO2 carriers, [including an] initial design for our 16,000 m³ mid-pressure vessel. We have 14 other designs of various sizes and pressures that are in early stage, but ready for earlier development," she said. 

Navigator Gas head of marine projects Carsten Manniche highlighted the nascent CO2 shipping industry’s core challenge in his presentation, with a statement that underlined the necessity of an integrated approach, ensuring each link in the chain, from emission sources to storage, operates seamlessly.

"This is a chain solution and I think it is understood. We have to transport and store CO2 at the lowest price, with the lowest CO2 footprint. That is the challenge," he said.