South Korea’s major shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) [042660:KS] formed collaborations with ship classification organizations American Bureau of Shipping (ABS) and Greek liquified natural gas (LNG) carrier manufacturer Gaslog [GLOP:US] to jointly develop onboard carbon capture and storage (OCCS) technology, as reported by the Korea Economic Daily on June 10. The OCCS technology is designed to absorb carbon emissions from vessels, then store them as a byproduct inside the ships for safe disposal onshore. DSME and Gaslog will design and install OCCS facilities in four LNG carriers that DSME will build and deliver to the Greek company in 2024 and 2025. Meanwhile, the ABS will give counsel to the OCCS development and evaluate the quality of the carrier.
Korean shipbuilders are turning to eco-friendly vessels after the International Maritime Organization (IMO) enacted the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Index (CII) regulations last June. The regulations, which take effect in November this year, will rate vessels by their carbon intensity and transporting efficiency. Earlier this month, South Korean shipbuilding giant Hyundai Heavy Industries Group joined forces with Hyundai Glovis and the ABS to develop the world’s largest liquefied carbon dioxide (LCO₂) carrier. Moreover, South Korea’s Ministry of Trade, Industry, and Energy also announced the Green Ship-K Strategy in June 2021, vowing to invest KRW254bn (USD197m) from 2022 to 2031 to build eco-friendly vessels that run on hydrogen and ammonia.