Long-standing shuttle tanker partners NYK and the Knutsen Group of Norway are setting up a joint venture to ship and store liquified CO2 at ambient temperatures.

The major Japanese shipping group and Knutsen, the largest shuttle tanker operator in the world, will each hold 50% stake in the new company: Knutsen NYK Carbon Carriers (KNCC).

Liquefied CO2 carriers will play an essential role in carbon capture, utilisation and storage which could play a major role in realising a carbon-neutral society, the companies said.

"The demand for liquefied CO2 carriers is expected to grow rapidly going forward," the companies, which have been 50:50 partners in KNOT Offshore Tankers since it was formed in 2010, said.

KNCC will also build and operate low/mid pressure vessels based on other technologies, they added.

"Through KNCC we will combine our extensive knowledge of ship operation and management to achieve the early realisation of not only small and medium-sized vessels but also large liquefied CO2 vessel operations," the two companies said.

The joint venture will use the Knutsen developed PCO2 technology that allows transport of liquified CO2 at ambient temperatures

Svein Steimler, president and chief executive of NYK Group Europe, and Trygve Seglem, owner and president of the Knutsen Group, will be the chair and vice-chair of KNCC 's board of directors.

Anders Lepsoe, who has a broad business background with extensive experience from the oil and gas, financing and shipping industries, has been appointed chief executive.

Steimler said: “Establishing KNCC enables NYK to offer marine transportation of liquefied CO2 which is an important milestone for reaching the targets set out in the Paris Agreement, and in line with NYK’s strategy and green business plan.”

Seglem added: “We are pleased to have developed a solution that is key to reach the ambitious climate goals."

At the end of 2021 KNOT, one of the leading operators of bow loaders, had 11 shuttle tankers including two FSOs in operation and three vessels under construction. The limited partnership KNOT Offshore Partners also has a fleet of 17 advanced shuttle tankers.

The Knutsen Group also includes LNG carrier owner Knutsen LNG; product tanker and ship management arm Knutsen OAS Shipping; and Knutsen Technology.

Seglem holds 70% of the shares in the group holding company, Seglem Holding, which in turn controls TS Shipping Invest. His daughters, Synnove and Jorunn, hold the remaining shares.

NYK, Trond Mohn, Tom Erik Klaveness, Offshore Merchant Partners and Jakob Hatteland are co-owners of the LNG fleet, which consists of 15 ships and 10 newbuildings.

TS Shipping Invest reported a pre-tax profit of NOK 369m ($44.3m) in 2020, up from a NOK 202m profit in 2019.

The private shipowner attributed the profit improvement to its shuttle tankers, LNG carriers and product tankers, as well as a focus on long-term charters to blue-chip companies.