Navigator Holdings Ltd. and Bumi Armada Berhad have signed a deal to form a 50-50 joint venture－Bluestreak CO2 Joint Venture－to provide transport services for carbon emissions capture and storage in the United Kingdom.
The joint venture will “design and implement a value chain of shuttle tankers delivering to a floating carbon storage & injection unit”, said a statement on Bursa Malaysia by Bumi Armada and its New York-listed partner announcing the non-binding agreement.
“The CO2 is intended to be subsequently injected into offshore storage aquifers and/or depleted oil and gas reservoirs in a controlled manner with full surveillance and management of the permanent storage location. This approach is anticipated to allow the Bluestreak CO2 Joint Venture to serve emitters with no access to pipeline infrastructure, to effectively manage their CO2 emissions.”
The UK market potentially involves over 30 million tons a year “from emitters who are not proximate to existing awarded carbon capture, usage and storage clusters”, the announcement indicated.
The company would also help Bumi Armada achieve net zero emissions by 2050, Bumi Armada chief executive Gary Christenson said. Establishing carbon capture and sequestration facilities is one of its strategies, which also include “applying emergent green technologies on new projects where applicable and practicable”, Bumi Armada says on its website.
The partners anticipate the first CO2 shipment within three years from the final investment decision. Discussions have been held with potential clients, the filing said.
The Bluestreak CO2 Joint Venture would serve customers excluded from “mega-cluster” projects, Navigator chief executive Mads Peter Zacho noted, calling the partnership the first shipping cooperation in the UK’s carbon capture sector.
Bumi Armada and Navigator expect a definitive deal by the end of this year.