Why onboard carbon capture could be a lower-cost option to cut ship emissions

Can onboard carbon capture (OCC) evolve into a cost-effective means to help shipping cut emissions by 2030 and reach net zero by 2050? DNV business development director, CO2 Shipping, Erik Mathias Sørhaug thinks so. But several key issues must be first addressed.

Presenting at CO2 Shipping, Terminals & CCS Conference, Americas 2024, Mr Sørhaug explored the potentially critical role OCC could play in shipping’s decarbonisation, highlighting key regulatory, operational and commercial barriers to its adoption. The half-day event, held 16 September, was produced by Riviera in association with Norton Rose Fulbright and sponsored by DNV.

“Onboard carbon capture in principle doesn’t make that much sense. You’re adding a fuel cost, and you will need to pay to discharge. However all decarbonisation comes with a cost. You need to look at onboard carbon capture and compare it with the alternatives,” used to reduce CO2 and greenhouse gas (GHG) emissions from ships.

Ship operators can use energy efficiency gains from engine, propulsion, hull cleaning and other efficiency measures, along with shore power to meet IMO’s 20% GHG emissions reduction target by 2030 (compared with 2008). This would lower shipping’s demand for expensive carbon-neutral fuels and OCC.

But Mr Sørhaug questioned the supply and quantity of those carbon-neutral fuels that would be available to shipping by 2030.

Comparing DNV estimates for production capacity of carbon-neutral fuels with the demand in IMO scenarios by 2030, he said, “Shipping might need 100% of this green fuel.”

He emphasised the need to maximise energy efficiency to reduce shipping’s carbon-neutral fuel demand.

“Energy efficiency is the low-hanging fruit. If we succeed in reducing energy, we can reduce the need for carbon-neutral fuels,” said Mr Sørhaug.

“Onboard carbon capture could potentially be the most cost-efficient way to decarbonise shipping. But in order for onboard carbon capture to be a solution, you need to have the infrastructure in place,” he said.

Besides infrastructure, he noted safety guidelines and the regulatory framework need to be addressed. The FuelEU Maritime regulation is coming into effect in 2025, and the EU Emissions Trading System is the only framework that provides an incentive to shipowners for capturing and storing CO2. IMO is currently considering a regulatory framework to account for OCC.