NYK Acquires 30% Stake in Norway’s Trudvang CCS Project

Japanese shipping company Nippon Yusen Kaisha (NYK) has entered the carbon capture and storage (CCS) sector in Norway after signing an agreement to acquire a 30% interest in the operator of the Trudvang CCS project and a corresponding 30% interest in Norway’s CO2 storage exploration licence EXL007.

NYK signed the sale and purchase agreement with Vår Energi CCS. The transaction remains subject to regulatory approvals and other customary closing conditions.

As part of the deal, NYK plans to establish a wholly owned subsidiary in Norway. Following completion, the subsidiary will acquire a 30% partnership interest in Trudvang CCS ANS from Vår Energi, along with a 30% participating interest in EXL007. NYK will subsequently join the project as a partner.

NYK Expands Into CCS Value Chain

NYK said its participation in the Trudvang project will allow the group to expand its activities beyond marine transportation and develop capabilities across the broader CCS value chain.

The company intends to use its involvement in the European CCS project to build practical experience in project development, as well as the technical and commercial aspects of CO2 transport and storage.

The investment also provides NYK with exposure to an emerging segment of the carbon management industry, where shipping and logistics capabilities can support the transportation of captured CO2 between industrial facilities and offshore storage locations.

Trudvang CCS Project in Norway

The Trudvang project is being developed as a transport and storage business for captured CO2 from industrial emitters in Europe. The project plans to transport the captured CO2 for injection and permanent storage in an offshore geological formation.

Technical and commercial studies are currently under way as the partners work towards the project’s commercialisation.

Vår Energi is the operator of the Trudvang CCS project, while INPEX Idemitsu Norge is also participating as a project partner.

NYK’s entry into Trudvang adds a shipping-sector participant to the project and aligns with the company’s efforts to develop capabilities in businesses connected to the energy transition, including CO2 transportation and storage.