MOL Starts Research and Development on Large-scale Liquefied CO₂ Carrier
- Part of NEDO Demonstration Project entrusted by Japan CCS -

June 22, 2021

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that the company will launch research and development (R&D) on adoption of a large-scale liquefied carbon dioxide (CO₂) carrier to complete the basic design under a project entrusted to Japan CCS Co., Ltd. (JCCS: President: Toshiaki Nakajima; Headquarters: Chiyoda-ku, Tokyo) from Japan's New Energy and Industrial Technology Development Organization (NEDO).

The "Long-term Strategy under The Paris Agreement" approved by the Cabinet of Japan in June 2019 underscores the importance of the role of CCS (Carbon dioxide Capture and Storage), CCU (Carbon dioxide Capture and Utilization) and carbon recycling as technologies to significantly reduce CO₂ emissions resulting from the use of fossil fuel. It points out the need for CO₂ transport due to the great distances between CO₂ emission sources and storage areas and calls for an appropriate business model to transport CO₂ safely and economically.

To start R&D and demonstration projects to safely transport large volume of CO₂ emitted from factories and thermal power plants to areas, where use and store CO₂, at low costs, with a view of Carbon dioxide Capture, Utilization and Storage (CCUS) technology to be implemented in the society around 2030, on March 31, NEDO publicly called for proposals on a "CCUS R&D and Demonstration Related Project / Large-scale CCUS Demonstration Project in Tomakomai / Demonstration Project on CO₂ Transportation." JCSS, the Engineering Advancement Association of Japan, Itochu Corporation, and Nippon Steel Corporation jointly applied and were selected for the demonstration project. JCCS in turn is to entrust MOL with R&D on adoption of a large-scale CO₂ carrier to the society, which is part of the project assigned to JCCS by NEDO. MOL is to participate in this project in order to contribute to the realization of a low- and de-carbonized society.

MOL entered the liquefied CO₂ ocean transport business by investing in Norway-based Larvik Shipping AS. It will further accelerate its initiatives in the field through its role in the NEDO demonstration project as it aims to achieve group-wide net zero emissions by 2050, which is stated in its "MOL Group Environmental Vision 2.1."

Outline of the demonstration project

(1) Project names	CCUS research and development/demonstration project/Large-scale CCS demonstration project in Tomakomai/Demonstration test related to CO2 transport
(2) Research & Development (R&D) items	R&D to establish the technology to transport liquefied CO2 by vessel Demonstration test of annually transporting 10,000-ton scale of CO2 by vessel Feasibility study of ship transport with the purpose of CCUS
(3) Project period	FY2021-2026 (plan)
(4) Organizations planned to be entrusted from NEDO	JCSS, Engineering Advancemen Association of Japan, Itochu Corporation, and Nippon Steel Corporation
(5) Project MOL re-entrusted from JCCS	R&D on the large-size liquefied CO2 carrier to be put into practical use

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[Outline of JCCS]

Company name: Japan CCS Co., Ltd. (JCCS
Established: 2008
Representative: Toshiaki Nakajima
Location: (Headquarters) Chiyoda-ku, Tokyo     
(Tomakomai CCS demonstration site) Tomakomai-shi, Hokkaido
Business: Research, R&D, feasibility research, demonstration test of CO₂ separation/capture, use, transport, and underground storage technology

MOL/CCUS business projects
December 2020: Australian Offshore Carbon dioxide Capture and Storage Hub Project
March 2021: MOL to Move into Ocean Shipping of Liquefied CO₂ Ocean Transport Business through Investment in Norway's Larvik Shipping AS | Mitsui O.S.K. Lines
May 2021: Microsoft Word - 20210527 Klaipedos nafta, Larvik Shipping, and Mitsui O.S.K. Lines will carry out a feasi.docx (mol.co.jp)
June 2021: MOL Joins International Think Tank and accelerate development for Carbon Capture, Utilization and Storage | Mitsui O.S.K. Lines