Shipowners Navigator Holdings and Bumi Armada have signed a preliminary deal that could see them create a joint venture to offer shipping and injection services in the UK’s carbon capture and storage (CCS) market.
The memorandum of understanding between Navigator, a US-listed owner of liquefied gas carriers, and floating energy infrastructure specialist Malaysia’s Bumi involves the creation of Bluestreak CO2.
The new company, in which the two shipowners would each have 50% stakes, would offer end-to-end solutions for carbon emitters to capture, transport, sequester and store CO2 under the UK’s Industrial Decarbonisation Strategy.
Gary Christenson, chief executive of Kuala Lumpur-listed Bumi Armada, said the partnership with Navigator is in line with the company’s goal of achieving net zero by 2050.
“This collaboration is a testament to our strong commitment towards providing the best decarbonisation solutions globally,” he said.
Bluestreak aims to build a fleet of liquefied CO2 shuttle tankers that would deliver volumes to a floating carbon storage and injection unit.
The full supply chain approach is aimed at positioning Bluestreak to serve companies without access to pipeline infrastructure.
The companies estimate that emitters of some 30 million tonnes per annum of CO2 are outside of CCS clusters with such infrastructure available.
Navigator chief executive Mads Peter Zacho said the agreement marks the first shipping partnership in the UK CCS sector.
‘End-to-end solutions’
“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,” he said.
“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.”
The transaction requires a definitive joint venture agreement approved by both companies’ boards, in addition to regulatory approvals and customary closing conditions.
The definitive agreement is expected by the end of the year.
Commercialising Bluestreak will require a critical mass of long-term customer commitments, the two companies said.
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