OGCI and GCMD partner to develop solutions to decarbonize shipping
The partnership will be focused on energy efficiency, future fuels, and unlocking the carbon chain.
Singapore / London, 25 June 2024 – The Oil and Gas Climate Initiative and the Global Centre for Maritime Decarbonisation have announced a coalition partnership agreement for a period of two years to work on a variety of solutions to decarbonize shipping.
The areas of collaboration will be energy efficiency to reduce emissions and future fuels with lower carbon intensity such as ammonia blends, methanol, and biofuels.
Decarbonizing transportation is a critical path to net zero, and a major focus for OGCI – a CEO-led effort of 12 of the largest oil and gas companies in the world. Around a fifth (or a fifth) of all transport emissions come from aviation, marine and shipping. These emissions are harder to reduce than road transport which can easily switch to electricity.
OGCI has been working on the development and deployment of low-carbon fuels such as biofuels (such as ammonia), hydrogen, and E-fuels) and has supported the development and deployment of onboard carbon storage (OCCS) on ships. OGCI brings knowledge and expertise from land-based carbon projects at CCUS Hubs to the partnership in order to mature OCCS which is at an earlier stage.
GCMD supports the decarbonisation in the maritime sector by pilots and tests. Their initiatives include enabling the use of ammonia for marine fuels, assuring quality, quantity, and emissions abatement from drop-in greenfuels, unlocking carbon value chain via OCCS, and scaling up the adoption of energy efficient technologies.
GCMD has recently completed a number of projects, including a landmark study on the offloading of captured carbon dioxide onboard vessels, a report examining biofuel degradation in marine supply chain, and a project pilot addressing concerns about long-term continuous biofuel use on vessel operations.
Complementary strengths of end-to-end carbon capture onboard at scale
The partnership builds upon an existing collaboration between OGCI & GCMD, known as Project REMARCCABLE. This initiative aims to demonstrate onboard carbon capture from end-to-end at scale. The first phase of this project has now been completed and the findings will be released later this year.
This partnership will help GCMD unlock the carbon value chains downstream from OCCS. This includes offloading, distribution and utilisation or utilisation of CO 2 captured onboard.
As CCUS hubs onshore develop, shipping can transport CO 2 from sinks to sources. Sharing best practices, coordinating effort and harmonising CO 2 transport standard can also accelerate the growth of CCUS hubs.
OGCI’s Managing Director Julien Perez said:
This partnership is an excellent example of cross-industry cooperation to achieve emission reductions, as it combines the knowledge and expertise of two critical industries – shipping and energy – to unlock new solutions to help decarbonize a hard-to-abate industry.
Julien Perez, Managing Director, OGCI
Professor Lynn Loo of GCMD said :
“As we focus on decarbonising the shipping industry, we cannot forget its critical role in transporting energy from where it is produced to where it is needed. Our partnership with OGCI provides a unique perspective on the role of shipping in the global fuel shift. As our Coalition partner we look forward to building a portfolio of viable solutions to help shipping achieve its net-zero target.”
Professor Lynn Loo is the CEO of GCMD
About OGCI
OGCI aims at leading the oil and gas sector’s response to climate changes and accelerating action towards a future of net zero in accordance with the Paris Agreement.
OGCI members over the past decade have demonstrated that oil and gas firms can play a vital role in delivering a future with a net-zero.
Since 2017, OGCI members have collectively halved methane emissions and cut flaring by 45%. They have invested $65 billion into low-carbon technologies including renewables, CCUS, direct air capture, and biofuels. They also shared best practices with other industries to accelerate decarbonization.
OGCI is made up of Aramco, bp. Chevron. Eni. Equinor. ExxonMobil. Oxy. Petrobras. Repsol. Shell.
The Global Centre for Maritime Decarbonisation was founded as a non profit organisation on 1 August, 2021. Its mission is to support the decarbonisation in the maritime industry through standardisation, deployment of solutions, financing of projects, and collaboration across sectors.
GCMD was founded by six industry partners, namely BHP Group, BW Group (formerly Sembcorp Marine), Eastern Pacific Shipping, Foundation Det Norske Veritas (formerly Det Norske Veritas), Ocean Network Express and Seatrium. The Maritime and Port Authority of Singapore also provides funding for research and development projects and programmes that meet certain criteria. Since its founding, bp Hapag-Lloyd, and NYK Line joined as Strategic Partners. Over 100 partners at the centre and project level have joined GCMD to date, providing funds, expertise, and in-kind assistance to accelerate the deployment and adoption of scalable low carbon technologies.
Since its founding, GCMD launched four key initiatives that aim to close technical and operation gaps: deploying ammonia for marine fuels, developing an assurance frame work for drop-in green fueled, unlocking the carbon chain through shipboard capture of carbon dioxide, articulating the value of captured carbon dioxide, and closing the data-financing hole to widen adoption of energy efficiency technologies.
GCMD is strategically situated in Singapore, which is the world’s busiest port for transshipment and largest bunkering hub. For more information visit www.gcformd.org