New York-listed handysize gas carrier owner and operator Navigator Holding has teamed up with Malaysian floater and vessel contractor Bumi Armada to establish a CO2 shipping and injection solutions joint venture company in the UK.
Called the Bluestreak CO2 Joint Venture, the company will be equally owned by Navigator and Bumi Armada, and target emitters with no access to pipeline infrastructure, to effectively manage their CO2 emissions.
The JV will look to design and implement a value chain of shuttle tankers delivering liquid carbon dioxide to a floating storage and injection unit before being stored in offshore aquifers and/or depleted oil and gas reservoirs.
The partners estimated that the potential market in the UK alone is over 30m tonnes of CO2 per year from emitters who are not proximate to existing awarded carbon capture, usage and storage clusters.
Initial talks are already being held with a number of emitters and if successful, the first shipment of CO2 could take place three years after taking final investment decision. The transaction is subject to a definitive joint venture deal, expected by the end of the fourth quarter, regulatory and board approvals, as well as sufficient long-term customer commitments.
“The Bluestreak CO2 Joint Venture marks the first shipping partnership into the carbon capture sector in the UK. I’m incredibly pleased to have the opportunity to offer an end-to-end solution for customers, particularly those not served by the large mega-cluster projects. Bumi Armada is a great partner to be taking this strategic step with, and we are very proud to be playing such a meaningful role in the UK’s decarbonisation strategy,” said Mads Peter Zacho, chief executive at Navigator.