A liquefied carbon dioxide carrier successfully receives the world's first ship-to-ship transfer of liquid CO₂ captured from a 14,000-TEU container ship in Shanghai using the full-process Onboard Carbon Capture and Storage System. [Photo/Shanghai Observer]

Shanghai successfully completed the world's first ship-to-ship transfer of liquid carbon dioxide captured onboard a vessel at Yangshan Port, marking a significant step towards practical maritime decarbonization.

This breakthrough is achieved by using a full-process Onboard Carbon Capture and Storage System developed by the Shanghai Marine Diesel Engine Research Institute, affiliated with the China State Shipbuilding Corporation.

This successful demonstration makes Shanghai the first city to create a complete, closed-loop ecosystem for capture, storage, ship-to-ship transfer, transport, and reuse of vessel-emitted CO₂.

It offers a "Shanghai Solution" for international shipping emissions reduction and sets a new global benchmark for the industry's green transition.

Facing stringent emissions regulations from the International Maritime Organization, shipowners are forced to choose between replacing old vessels with methanol or building new ammonia-fueled vessels, both of which are expensive.

The Shanghai institute's OCCS system provides a compelling alternative. Su Yi, general manager of the institute's Environmental Equipment Division, said that the system not only reduces retrofitting costs by half compared to other available options, but also effectively extends vessel lifespans and turns waste into profit.

The system is able to capture over 80 percent of CO₂ emissions with 99.9 percent purity, Su said.

For the 14,000-TEU container ship involved in the operation, the retrofit cost was around $10 million, less than half the cost of converting to methanol or ammonia power.

At the same time, the captured liquid CO₂ can be sold for industrial purposes for up to $8 million per year.

A major hurdle for the adoption of the OCCS system has been the logistics and cost of offloading the captured CO₂ from the vessel.

Many industrial players requiring CO₂ for their daily operations are located near smaller ports, which are unable to handle large container ships.

The innovative ship-to-ship transfer directly addresses this bottleneck.

"For scaled operations, ship-to-ship transfer offers clear advantages. It is significantly cheaper than land transport and much more efficient," said Du Mingsai, project manager for the transfer operation.

"A single CO₂ carrier is able to handle dozens or even hundreds of times more volume than a tanker truck."

This method allows transfers at anchorages without dedicated port infrastructure, offering flexibility, especially for mid-voyage unloading on long routes.

Captured CO₂ can then be transported via existing shipping networks to specialized terminals.

To facilitate the global adoption of this "Shanghai Solution", experts from the institute are participating in the IMO's newly formed working group on OCCS applications, contributing the Shanghai experience to shape future global regulations and standards for maritime carbon capture and transfer.

Source: Jiefang Daily