Japan firms gain approval for first liquid CO2-and-e-methanol carrier

Japanese shipping firms Mitsui OSK Lines (MOL) and Mitsubishi Shipbuilding, part of Mitsubishi Heavy Industries Group, have secured approval to build what could be the world’s first liquefied carbon dioxide and methanol carrier.

The companies received approval in principle from classification society ClassNK under its Guidelines for Ships Using Low-Flashpoint Fuels. They will now move ahead with further development and design work.

The vessel, developed under a joint project launched in 2022, is designed to transport liquefied CO2 from a capture site to a methanol production facility. On the return voyage, it would carry synthetic methanol produced using the captured CO2 and renewable hydrogen.

By adopting this approach, MOL and Mitsubishi Shipbuilding aim to improve logistical efficiency by reducing the empty return trips typically seen with dedicated carriers.

“We will proceed with further technical studies, aiming for the commercialisation of LCO2/methanol carriers through collaboration with related companies and the relevant government agencies,” MOL said in a statement.

The announcement follows recent developments elsewhere in Asia aimed at scaling CO2 transport infrastructure.

©MOL

In China, Shanghai Qiyao Environmental Technology last week completed what it described as the world’s first ship-to-ship transfer of liquefied CO2. The operation involved transferring CO2 captured onboard an Evergreen container vessel to a dedicated barge at Yangshan Port.

The Shanghai project, which uses an onboard carbon capture system capable of over 80% capture at 99.9% purity, is designed to operate without port-side infrastructure and could offer a flexible solution for CO2 offloading.

Together with the Japanese dual-use carrier concept, the developments point to a broader regional effort to establish viable maritime CO2 logistics.

Synthetic methanol is a low-carbon alternative to conventional methanol and is increasingly being used to decarbonise sectors such as shipping, chemicals and fuel blending. It is considered a promising marine fuel in line with the International Maritime Organization’s greenhouse gas reduction targets.

Recent estimates suggest the synthetic methanol market was worth around $6bn in 2022, with forecasts indicating it could surpass $15bn by 2032. The broader methanol market, including fossil-based production, was valued at more than $35bn as of 2023, highlighting the potential for synthetic variants to scale.

Growth is expected to accelerate as green fuel regulations evolve, and as supporting infrastructure for carbon capture and hydrogen production becomes more widespread.