New-York listed Navigator Holdings signs a non-binding memorandum of understanding MoU with the floating infrastructure operator Bumi Armada, to establish a joint venture company, under the name “Bluestreak CO2 Joint Venture” to provide CO2 shipping and injection solutions in the United Kingdom.
The shipowner and operator of handysize liquefied gas carriers Navigator will own 50% in the Joint Venture and the rest 50% by Bumi Armada.
Under the Joint Venture, a value chain of shuttle tankers will be designed and implemented, delivering to a floating carbon storage and injection unit.
The CO2 is intended to be subsequently injected into offshore storage aquifers and/or depleted oil and gas reservoirs.
The partners estimated that the potential market in the United Kingdom alone, is over 30 million tonnes of CO2 per annum from emitters who are not proximate to existing awarded carbon capture, usage and storage clusters.
Initial talks are already being held with a number of emitters and if successful, the first shipment of CO2 is anticipated by the parties to take place three years after taking final investment decision.
The transaction is subject to the execution of a definitive joint venture agreement, approval by the boards of directors of both parties, regulatory approvals and other customary closing conditions.
The parties anticipate entering into a definitive joint venture agreement by the end of the fourth quarter of 2023.
Mads Peter Zacho, Navigator’s Chief Executive Officer, commented: “The Bluestreak CO2 Joint Venture marks the first shipping partnership into the carbon capture sector in the UK. I’m incredibly pleased to have the opportunity to offer an end-to-end solution for customers, particularly those not served by the large “mega-cluster” projects. Bumi Armada is a great partner to be taking this strategic step with, and we are very proud to be playing such a meaningful role in the UK’s decarbonisation strategy.”