Shell to build ships to carry more CO2 over longer distances for CCS hubs

By Florence Tan

SINGAPORE (Reuters) - Shell is building larger vessels that can carry more carbon dioxide over longer distances as part of the company's plans to expand its carbon capture storage (CCS) business globally, the oil major said.

The ability to ship large volumes of CO2 from industrial sites to offshore CCS hubs is critical in improving the economies of scale for these projects. CCS is aimed at decarbonising heavy industries such as refining, cement and steel.

As part of the Northern Lights project in Norway, Shell's joint venture with Equinor and TotalEnergies, the companies will build two ships capable of carrying 7,500 cubic metres of CO2.

Shell is leading the design and construction of the vessels, which will be powered by liquefied natural gas, the company said. Steel-cutting will take place in the third quarter, while the ships will be ready for delivery in 2024.

The company said it is also making larger vessels that can travel over longer distances, as well as finalising the design for a 12,000-cubic metres ship.

Designs for vessels with capacities of 36,000, 40,000 and 70,000 cubic metres are in progress, according to the company.

Shell operates the Quest CCS facility near Edmonton, Alberta, and is a partner in the Gorgon CCS in Australia. It is also working on several similar projects across Canada, Europe and the Asia Pacific.

(Reporting by Florence Tan; Editing by Shounak Dasgupta)