What's Happening?
Northern Lights JV has announced the expansion of its CO2 transport fleet through new charter agreements. The company has awarded a charter agreement to a consortium of 'K' Line and MISC Berhad for one
new liquid CO2 transport vessel, with a second vessel to be awarded in April 2026. Additionally, Mitsui O.S.K. Lines has secured two charter agreements for new CO2 transport vessels. Each of the first three vessels will have a cargo capacity of 12,000 m3. These long-term time charter agreements are intended for the cross-border transport of CO2 from commercial customers in Europe. This expansion aligns with Northern Lights' project to increase its transport and storage capacity to over 5 million tonnes of CO2 annually. The vessels will be constructed by Dalian Shipbuilding Offshore and HD Hyundai Heavy Industries, with delivery expected between the second half of 2028 and the first half of 2029.
Why It's Important?
The expansion of Northern Lights' CO2 transport fleet is significant as it supports the growing demand for carbon capture and storage solutions in Europe. By increasing its transport capacity, Northern Lights is positioning itself to meet the needs of commercial customers seeking to reduce their carbon footprint. This development is part of a broader effort to combat climate change by facilitating the capture and storage of CO2 emissions. The involvement of major shipping companies like 'K' Line, MISC Berhad, and Mitsui O.S.K. Lines underscores the importance of collaboration in achieving environmental goals. The expansion also reflects the increasing investment in infrastructure to support sustainable energy solutions, which could have long-term benefits for the environment and the economy.
What's Next?
The next steps for Northern Lights include the construction and delivery of the new CO2 transport vessels, which are scheduled to begin service between 2028 and 2029. As the project progresses, Northern Lights will likely continue to secure additional customer agreements to utilize the expanded capacity. The successful implementation of this project could encourage further investments in carbon capture and storage technologies, potentially influencing policy decisions and regulatory frameworks in Europe and beyond. Stakeholders, including environmental groups and industry leaders, will be closely monitoring the project's impact on reducing carbon emissions.
