Advancing carbon management through the global commoditization of CO<sub>2</sub>: the case for dual-use LNG-CO<sub>2</sub> shipping
Aparajita Datta, Rafael De Leon, Ramanan Krishnamoorti
Abstract
Rising anthropogenic CO2 emissions and global temperatures are a technological, social, and political challenge. These necessitate deep decarbonization through carbon management strategies for sustained climate action. Cost-effective transportation of CO2 from point sources to utilization and storage sites is a significant bottleneck for at-scale carbon management. A new mechanism to achieve international cooperation on carbon management through effective CO2-source and CO2-use or sequestration matching is addressed in this paper. The mechanism is founded on utilizing the growth of global LNG trade to transport CO2 over long distances via dual-use vessels that carry CO2 on their return journey following LNG delivery. A foundational carbon capture, utilization, and storage (CCUS)-based economic model for the utilization of CO2 originating in South Korea and Japan via enhanced oil recovery (EOR) in the offshore U.S. is explored. The model sets forth the objectives, scale, costs, and implications for the international trade and commoditization of CO2, as against its current status of a waste product. Further, policy frameworks that can accelerate the international trade of CO2 via this dual-use shipping model are discussed.