NYK Line, the Japanese shipping giant, has signed a contract to acquire a 30% stake in the Trudvang CCS carbon storage project in Norway. This move signifies the company's expansion from carbon transportation into the realm of its storage.
Details of the NYK Line and Vår Energi Agreement
The company's contract with Vår Energi CCS is for the acquisition of 30% of the shares of Trudvang CCS ANS and the corresponding share in the CO2 storage exploration license EXL007 in Norway. This investment will be made through a new subsidiary that will be wholly owned by NYK, and its completion is subject to obtaining regulatory approvals. The financial details of this agreement have not been disclosed.
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With this agreement, NYK enters a project where it has previously been active in carbon transportation through the joint venture Knutsen NYK Carbon Carriers (KNCC). This joint venture was established on a 50:50 basis with the Norwegian group Knutsen.
Storage Potential and Plans
The CO2 storage system in the Trudvang project is initially designed for about 2 million tons of CO2 per year, but there is potential to expand this capacity to over 20 million tons. Carbon injection is planned into the Utsira formation, which is located in the Sleipner field that has been used for CO2 storage for years.
Vår Energi, which manages the project's license, has projected that the storage capacity of Trudvang could reach 9 million tons per year for at least 25 years, totaling about 225 million tons.
NYK has stated that this investment will help expand its CCS activities from maritime transportation to management, injection, and geological CO2 storage. The group is developing liquid CO2 transportation through KNCC, which serves as the maritime transportation platform for both NYK and Knutsen.
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