GCMD and BCG publish report “Opportunities for shipping to enable cross-border CCUS initiatives”

Shipping poised to play a vital role in APAC cross-border CCUS initiatives, with annual CO2 shipping volumes projected to reach 100 MtPA by 2050

A joint study by the Global Centre for Maritime Decarbonization (GCMD) and Boston Consulting Group (BCG) has identified shipping to play a key role in enabling CCUS initiatives, particularly when there is a large geographical mismatch between potential captured CO2 sources and sequestration hubs.

The report, titled “Opportunities for Shipping to Enable Cross-border CCUS Initiatives”, found that shipping CO2 will be especially important in Asia Pacific (APAC) due to the vast oceans and seas that separate emitters and sequestration sites when compared to Europe. To address this, several APAC governments, including Australia, Indonesia, Japan, Malaysia, Singapore, and South Korea, are pursuing cross-border partnerships and initiatives to support cross-border CO₂ transportation and sequestration.

The study estimated that approximately 100 million tons per annum (MtPA) of CO2 captured using carbon capture technologies is expected to be transported across national borders in APAC by 2050. Transporting this annual tonnage would require between 85 to 150 liquefied CO2 carriers of 50 kt capacity where the total investments needed for these vessels by 2050 could reach up to USD 25 billion. Creating a market of this scale will necessitate concerted efforts from both the public and the private sector, including economic incentives, long-term contracts for midstream players, and greater clarity on key standards.