Malaysian FPSO specialist makes a move on CO2 shipping solutions



Malaysian floater specialist Bumi Armada and Navigator Holdings plan to establish a 50:50 joint venture – Bluestreak CO2 to provide carbon dioxide shipping and injection services in the UK.

Navigator is the owner and operator of the world’s largest fleet of handy-size
liquefied natural gas carriers.

Bluestreak CO2 aims to provide an end-to-end solution for carbon emitters to capture, transport, sequester and store their carbon dioxide emissions in line with the
United Kingdom’s Industrial Decarbonisation Strategy.

It is envisaged that the joint venture partners will design and implement a value
chain of shuttle tankers delivering to a floating carbon storage and injection
unit.

Navigator and Bumi Armada — which have signed a non-binding memorandum of understanding — are in initial discussions with a number of emitters and if successful, the first shipment of CO2 is anticipated three years after taking the final investment decision.

The Malaysian contractor noted that the CO2 is intended to be subsequently injected into offshore storage aquifers and/or depleted oil and gas. This approach is
anticipated to allow the Bluestreak CO2 JV to serve emitters with no access to
pipeline infrastructure, to effectively manage their carbon dioxide emissions.

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“The Bluestreak CO2 JV marks the first shipping partnership into the carbon capture
sector in the UK. 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,” said Navigator chief executive, Mads Peter Zacho.

Bumi Armada said it is estimated that the potential market in the UK alone is more
than 30 million tonnes per annum of CO2 from emitters which are not proximate
to existing awarded carbon capture, usage and storage clusters.

“We are excited to collaborate with Navigator in this strategic partnership to
bring sustainable and scalable solutions to reduce carbon emissions, which is
also in line with Bumi Armada’s recently launched decarbonisation agenda to
achieve net zero by 2050,” commented Gary Christenson, Bumi Armada chief
executive.

“This collaboration is a testament to our strong commitment towards providing the
best decarbonisation solutions globally.”

The transaction is subject to the execution of a definitive joint venture agreement, approval by the companies’ boards, regulatory approvals where applicable and other customary closing conditions.

The companies expect to enter into such an agreement by year-end although commercialisation of the Bluestreak CO2 JV is subject to sufficient long-term customer commitments.