Knutsen NYK Carbon Carrier won for Western Australia carbon capture and storage project Ship’s crew

Australian oil and gas company Pilot Energy Limited has signed an agreement with Knutsen NYK Carbon Carriers AS (KNCC), an international provider of marine CO2 transport and storage solutions, for the transport and offshore injection of liquefied CO2 at the Cliff Head CCS- Project signed in Western Australia.

The Cliff Head project aims to avoid around 8 million tonnes of CO2 emissions from Western Australia’s Kwinana Industrial Park each year. Under the terms of the agreement, KNCC will use its proprietary Liquefied CO2-Elevated Pressure (LCO2-EP) technology to transport captured CO2 emissions from the Kwinana industrial estate for injection and permanent storage at the Cliff Head CCS project site.

The project will convert the operating Cliff Head offshore oil field into a permanent CO2 storage site capable of continuously storing over one million tonnes of CO2 per year (mmtpa) by 2050, with a potential total storage capacity of over 50 million tonnes. The project is an integral part of the Mid West Clean Energy Project, which aims to produce over 1.2 million tonnes per year of low-cost, clean ammonia for export with approximately 99% CO2 capture.

KNCC is a Norwegian joint venture company owned by the Norwegian Knutsen Group and the Japanese NYK Group. The Company is focused on the technical and commercial development of a global marine liquefied CO2 transportation and storage business utilizing its proprietary containment system technology, known as LCO2-EP, which enables the transport of liquefied CO2 at ambient temperatures. LCO2-EP has received General Approval for Marine Applications (“GASA”) from class society DNV, allowing KNCC to order ships with this technology once the commercial and financial terms for the entire CCS value chain of the Cliff Head CCS project are met are agreed by pilot.

During the initial three-year term of the agreement, Pilot and KNCC will evaluate the technical and commercial solution to initially provide a carbon transport service for emitters in Western Australia’s Kwinana Industrial District. Each party bears its own costs.

“KNCC’s innovative LCO2-EP containment system for transporting liquefied CO2 at ambient temperatures is an ideal solution to efficiently transport captured CO2 emissions from the Kwinana Industrial Zone and is a cost-effective direct offshore CO2 unloading and injection system for permanent storage in the Kwinana Industrial Park Cliff Head CCS Project,” said Brad Lingo, Pilot’s CEO.

“With the agreement reached, we are delighted to be working with Pilot, whose goal is to transport and store CO2 at ambient temperature. We will contribute to the realization of the Cliff Head CCS project by using our cost-effective, flexible and scalable LCO2-EP technology to transport and inject the LCO2 at ambient temperature from our CO2 tankers into the offshore CO2 reservoirs said Anders Lepsøe, CEO of KNCC.

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