The Asia-Pacific (APAC) region is on track to become the world’s largest hub for shipping captured CO2, according to a new report from energy consultancy Xodus in partnership with Subsea7.
By 2055, the region could require close to 80 specialized vessels to transport carbon dioxide across vast distances between emission sources and storage sites.
The Forecasting APAC’s CCUS Infrastructure report outlines a future in which carbon capture, utilization, and storage (CCUS) efforts in APAC will demand extensive infrastructure — including around 8,000 kilometers (~4971 miles) of pipelines, over 90 designated storage sites, and a fleet of nearly 80 CO2 carriers.
Because of the significant geographical separation between industrial emitters and viable storage locations, countries like Japan and South Korea are expected to lead regional demand.
Though these nations lack substantial oil and gas resources, the report suggests they will need offshore infrastructure on par with Australia’s massive gas developments to meet their CO2 storage goals.
Xodus notes that linking CCUS projects to existing liquefied natural gas (LNG) infrastructure could yield a 10–15% cost reduction, comparable to cutting shipping routes by over 3,000 kilometers (1,864 miles). This integration could make early-stage carbon shipping more economically viable.
While Europe has a head start in CCUS deployment, with most projects relying on nearby pipelines, Asia-Pacific’s growth will depend on international transport and long-haul shipping in the near term. According to the report, domestic emitters will initially play a smaller role.
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Despite the steep cost of long-distance offshore carbon transport and storage at first, Xodus anticipates costs will decline as closer storage options become operational and market competition grows.
Additionally, the region’s dense clusters of industrial emissions are expected to keep capture and onshore transportation expenses low over time, making APAC’s CCUS market increasingly competitive.
Looking ahead, the report forecasts the need for about 80 interregional CO2 shipping vessels by 2055 — roughly 20% of the region’s current LNG fleet capacity. Building six new CO2 ships annually over the next 15 years is considered feasible under this plan.
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