As the Northern Lights‘s CCS project continues to expand its fleet, Dalian Shipbuilding Offshore Co., Ltd. (DSOC) has signed a contract for the construction of 1+1 7,500 m3 liquefied carbon dioxide (LCO2) carriers with Bex Group.
On November 29th, Norway Northern Lights officially announced that it had signed a charter agreement for 1+1 7,500 m3 liquefied carbon dioxide carriers with Germany’s Bernhard Schulte Group, which increased the number of operating fleet of Northern Lights’ CCS project to 4 ships. At the same time, DSOC also signed a construction contract for 1+1 7,500m3 LCCs with Bernhard Schulte Group. After the delivery of the project, the Bernhard Schulte will provide CO2 transportation services for the Northern Lights’s CCS project.
The ships will have a cargo capacity of 7,500 m3. Custom-built for transportation of liquefied CO2, these ships are the first of their kind and will safely transport CO2 from Northern Lights’ customers across Northwest Europe to the CO2 receiving terminal at Øygarden, Norway before permanent geological storage. Northern Lights is developing a ship-based CO2 transport solution and has implemented innovative technologies in the ship design to reduce the CO2 emissions from shipping. The primary fuel for the ships will be LNG. Combined with other proven technologies, such as wind-assisted rotor sail and air lubrication, the ships will have around 34% lower carbon footprint compared to conventional ships running on marine fuel.
The fourth Northern Lights ship will be owned and operated by Bernhard Schulte, the reputable ship owning business of the family-owned international Schulte Group, a leading shipping company providing next to the core business ship management and other maritime services around the globe. Northern Lights has signed a long-term time charter party for the cross-border transport of CO2.
“CCS is a safe and efficient way to handle emissions and it is critical to meet climate targets. We are excited to see Bernhard Schulte now entering the Liquid CO2 business, as strong partnerships are required to succeed. We have strong belief in the tripart collaboration between Northern Lights JV, DSOC and Bernhard Schulte”, says Børre Jacobsen, Managing Director of Northern Lights.
“Ordering this vessel is an exciting step in the expansion of Bernhard Schulte’s fleet portfolio in an innovative future tanker segment. We are looking forward to becoming part of Northern Lights industry leading project to provide CO² transport and storage infrastructure. The Schulte Group has long-standing relationships with Chinese shipyards, which is a strong foundation for this outstanding project,” says Ian Beveridge, CEO of Bernhard Schulte.
DSOC is the most experienced and prominent EPC shipbuilding and offshore yard in China. With its registered location in Dalian, DSOC stepped into the global oil and gas industry in early 1970s and has become a well-established player in the market. Until now, over 100 offshore products have been delivered to the worldwide clients, including the LNG bunker vessel, liquefied gas carriers (VLEC), wind farm installation platform, and also oil and gas drilling and operation products, such as FPSO topside modules, semi-sub and jack-up drilling rigs. Now with the implementing of a series of CO2 ships for Northern Lights, the CO2 ships is becoming DSOC’s main business.