Mitsui O.S.K. Lines, Ltd. (MOL) and Bapco Energies B.S.C. (Bapco Energies) have announced the signing of a Memorandum of Understanding (MoU) for development of cross border carbon dioxide (CO₂) transport and sequestration.

Through joint studies, MOL and Bapco Energies will work on the construction of a carbon dioxide capture and storage (CCS) value chain consisting of CO₂ separation, collection, transport, injection, and storage.

The first study, according to MOL, would look at the estimated cost of CO₂ for using Bapco Energies’ permanent CO₂ storage in the Kingdom of Bahrain, including the cost of receiving CO₂ at the CO₂ receiving port and the unit cost of liquified CO₂ travel by ship.

The second study would undertake collaborative research of potential markets in Asia Pacific locations, for example, as well as negotiate future corporate structure in good faith.

Takeshi Hashimoto, President and CEO of MOL, said: “As a developer and a provider of a variety of social infrastructure business in addition to traditional shipping, MOL is honoured and excited to have an opportunity to collaborate with Bapco Energies.

“We believe there is a significant synergy in our cooperation to create CCS value chain, also to become a bridge between the Kingdom of Bahrain and Asia-Pacific regions.”

Mark Thomas, Group CEO of Bapco Energies, stated: “We have recently concluded a study confirming that the Kingdom of Bahrain’s CO₂ storage capacity exceeds its needs to meet its net-zero target by 2060.

“This opened exciting opportunities for us, including the development of cross-border CO₂ transportation and storage. This collaboration with MOL underscores our unwavering dedication to achieving a low-carbon future in line with the Kingdom of Bahrain’s climate targets.”

In November, MOL and Ta Tong Marine Co., Ltd. (TSSM) signed a contract with Damen Shipyards in The Netherlands to build a new service operating vessel (SOV).