Dutch owner Royal Wagenborg is moving into CO2 shipping in a new agreement with UK energy group Ineos, backed by Manchester United owner Sir Jim Ratcliffe.
The two companies have bagged a contract to operate the first liquid CO2 carrier for the Project Greensand carbon capture and storage development.
Wagenborg will supply a newbuilding for the work in what is called a “landmark” transaction.
The agreement was signed in the presence of King Willem-Alexander of the Netherlands and King Frederik of Denmark.
The multi-year deal also involves Ineos partners Harbour Energy and Nordsofonden.
The companies said Project Greensand has already marked a world-first achievement by demonstrating the safe cross-border transport of CO2 for injection into a depleted oilfield.
In March 2023, King Frederik authorised the first injection of CO2 into Danish subsoil in the North Sea, marking a crucial advancement for sustainable carbon management in the region.
Only 10 liquid CO2 carriers are on order in a nascent sector, but more companies are plotting entry into the sector, including Altera Infrastructure and Hunter Group.
Wagenborg manages 174 ships in total. It is better known for general cargo and multipurpose tonnage.
Lack of dedicated ships
The new deal will see a CO2 carrier built to meet the highest standards of safety and efficiency, making large-scale transport of CO2 possible to the storage site, the parties explained.
A shipyard has not been revealed.
Ineos Energy chief executive David Bucknall said: “The lack of dedicated CO2 carriers has been a bottleneck for advancing CCS projects within Europe.
“The collaboration between Ineos and Royal Wagenborg serves as a breakthrough moment for the EU’s climate goals, offering a viable solution for large-scale CO2 transport.
“The agreement highlights the commitment of Ineos, Royal Wagenborg and the governments of the Netherlands and Denmark to achieving a sustainable and low-carbon future.”
Profit at Wagenborg was eroded by weaker dry cargo rates in 2023.
The Delfzijl-headquartered company logged net earnings €84m ($91m) lower at €157.5m, the NT website reported, citing the annual report.
The operating result fell by 10% to €270.5m.
