December 05, 2023
Mitsui O.S.K. Lines, Ltd.
Bapco Energies B.S.C.
TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto; Headquarters: Minato-ku, Tokyo) and Bapco Energies B.S.C. (Bapco Energies; Group CEO: Mark Thomas; Headquarters: Manama, Kingdom of Bahrain) announced the signing of a memorandum of understanding (MoU) for development of cross border carbon dioxide (CO2) transport and sequestration with the goal of establishing a carbon dioxide capture and storage (CCS) (Note) value chain, where MOL provides marine transportation of liquified CO2 and Bapco Energies provides the sequestration sites.
CCS is regarded as one of the most effective solutions to realize a low-carbon/decarbonized society. MOL and Bapco Energies will collaborate on the future establishment of a CCS value chain consisting of separation, capture, transport, injection and storage of CO2 through the following studies.
(1) To conduct the study of the estimated cost of CO2 for using the permanent CO2 storage owned and operated by Bapco Energies in the Kingdom of Bahrain, including the receiving cost of CO2 at the CO2 receiving terminal, and the unit cost of liquified CO2 transportation by ship.
(2) To jointly conduct the study of the potential markets in Asia Pacific regions for instance, and to discuss in good faith future business structure.
"As a developer and a provider of a variety of social infrastructure business in addition to traditional shipping, MOL is honored and excited to have an opportunity to collaborate with Bapco Energies. We believe there is a significant synergy in our cooperation to create CCS value chain, also to become a bridge between the Kingdom of Bahrain and Asia-Pacific regions." said Takeshi Hashimoto, President & CEO of MOL.
"We have recently concluded a study confirming that the Kingdom of Bahrain's CO2 storage capacity exceeds its needs to meet its Net-Zero target by 2060. This opened exciting opportunities for us, including the development of cross-border CO2 transportation and storage. This collaboration with MOL underscores our unwavering dedication to achieving a low-carbon future in line with the Kingdom of Bahrain's climate targets." said Mark Thomas, Group CEO of Bapco Energies.
(Note) CCS: Technology to capture CO2 from exhaust gas and store it underground.
The MOL Group Vision is to develop a variety of social infrastructure businesses in addition to traditional shipping, and will meet evolving social needs, including environmental conservation, with innovative technology and services.
This project is in line with the growth of non-shipping businesses set forth in the "BLUE ACTION 2035" management plan and the strategy of "Expanding low-carbon/decarbonized business by leveraging the group's collective strengths" in the "MOL Group Environmental Vision 2.2," in addition to the MOL Group Vision. With these contributions to the sustainable development of society and the preservation of nature, from the blue oceans, the group sustains people's lives and ensures a prosperous future.