MOL to Move into Ocean Shipping of Liquefied CO2 Ocean Transport Business through Investment in Norway's Larvik Shipping AS
March 19, 2021
TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) today announced that it has decided to invest in Norway-based Larvik Shipping AS, a ship management company for liquefied CO2 carriers, marking MOL's first foray into the liquefied CO2 ocean transport business.
Liquefied CO2 ocean transport plays a key role in carbon dioxide capture utilization and storage (CCUS) value chains as a means of effectively connecting collection sites with storage or usage sites. CCUS is drawing attention as a technology to collect and store CO2 or use it effectively, and a step toward realizing a low-carbon society. According to a report by the International Energy Authority (IEA), CCUS targets a 15% reduction in cumulative CO2 emissions by 2070. This is expected to contribute to a reduction of about 6.9 billion tons per year when carbon neutrality is achieved.
Larvik Shipping has managed industrial liquefied CO2 tankers serving Europe for over 30 years, and has a strong track record in safe transport of liquefied CO2 and extensive cargo-handling know-how. MOL will soon enter the liquefied CO2 ocean transport business, which is positioned for significant growth in step with the increasing adoption of CCUS. MOL will contribute to further expansion of the business by combining its accumulated expertise and technological capabilities in safe operation with Larvik Shipping's knowledge and solid experience. Both companies will discuss the adoption of larger ships with an eye toward expanding both upstream and downstream and in the CCUS value chain.
MOL continually focuses on "Promotion of environmental strategies and development of emission-free business into a core business," as stated in the Rolling Plan 2020 management plan, to contribute to the achievement of a decarbonized society.
[Outline of Larvik Shipping AS]
Company name: Larvik Shipping AS
Representative: John Espen Tollevik
Location: Larvik, Norway
Business: Ship management of liquefied CO2 tankers, multi-purpose cargo freighters, and dry bulkers