Advancing carbon management through the global commoditization of CO2: the case for dual-use LNG-CO2 shipping

• Published in: Carbon management Vol. 11; no. 6; pp. 611 - 630
• Main Authors: Datta, Aparajita, De Leon, Rafael, Krishnamoorti, Ramanan
• Format: Journal Article
• Language: English
• Published: Taylor & Francis 01.11.2020; Taylor & Francis Group
• Subjects: Carbon management; commoditization of CO; commoditization of co2; dual-use shipping; EOR; LNG
• ISSN: 1758-3004; 1758-3012
• DOI: 10.1080/17583004.2020.1840871

Rising anthropogenic CO 2 emissions and global temperatures are a technological, social, and political challenge. These necessitate deep decarbonization through carbon management strategies for sustained climate action. Cost-effective transportation of CO 2 from point sources to utilization and storage sites is a significant bottleneck for at-scale carbon management. A new mechanism to achieve international cooperation on carbon management through effective CO 2 -source and CO 2 -use or sequestration matching is addressed in this paper. The mechanism is founded on utilizing the growth of global LNG trade to transport CO 2 over long distances via dual-use vessels that carry CO 2 on their return journey following LNG delivery. A foundational carbon capture, utilization, and storage (CCUS)-based economic model for the utilization of CO 2 originating in South Korea and Japan via enhanced oil recovery (EOR) in the offshore U.S. is explored. The model sets forth the objectives, scale, costs, and implications for the international trade and commoditization of CO 2 , as against its current status of a waste product. Further, policy frameworks that can accelerate the international trade of CO 2 via this dual-use shipping model are discussed.