Navigator Holdings and floating infrastructure operator Bumi Armada Berhad have announced they will be partnering on the development of a floating carbon storage and injection unit.
Navigator Holdings is a specialist in liquefied natural gas carriers and brings to the table its expertise in transporting gas by sea.
The two companies signed a non-binding Memorandum of Understanding (MoU) yesterday to establish the Bluestreak CO2 joint venture with a 50% stake each.
The joint venture aims to create a value chain of shuttle tankers that will transport captured carbon dioxide emissions to a floating CO2 storage and injection facility in the UK.
Navigator and Bumi Armada are currently negotiating with several emitters, whose CO2 emissions are to be shipped to said floating unit, from which the carbon dioxide will be injected into depleted oil and gas reservoirs or offshore storage aquifers.
Both companies hope that the newly established joint venture will help set up a full end-to-end solution for emitters to capture, transport and store their emissions and as such, the Bluestreak CO2 initiative will be among the first to do so within the UK.
Estimates say that there are more than 30 million metric tons of CO2 annually from emitters who are not within close proximity to awarded carbon capture clusters, which represents enormous potential for the Bluestreak CO2 joint venture.
There is still work ahead before the decision to move forward with the project is final, but Navigator and Bumi Armada hope to sign a definitive joint venture agreement by the end of this year.
Regulatory approvals where necessary still need to be obtained, and the approval of the Boards of Directors of both companies have yet to be given, as well.
If all is successful, the first shipment of captured CO2 emissions is expected to take place three years after the final investment decision is made.