NYK and ENEOS Sign Deal to Procure Marine Fuel with Carbon Removal Credits

Nippon Yusen Kabushiki Kaisha (NYK), and ENEOS Corporation, (ENEOS) recently announced a deal for collaboration in reducing carbon emissions from shipping. Under this deal, the sale and purchase of marine fuel are sold, together with CDR credits produced by Direct Air Capture with Carbon Storage (DACCS).

DACCS Technology Captures CO2 from Atmosphere

ENEOS will buy CDR credits from 1PointFive’s STRATOS Direct Air Capture plant, starting operations in 2025. The process will generate these credits by directly removing CO2 from the atmosphere and securely storing it underground. ENEOS will sell the marine fuel and its associated CDR credits to NYK over a five-year period, starting in 2028. DACCS is central to achieving net-zero emissions as it removes greenhouse gases that energy efficiency or next-gen fuels cannot remove.

NYK Pledge on Net Zero Emissions

According to the November edition 2023 of NYK Group Decarbonization Story, NYK is aggressively striving for CO2 reductions, being in the journey path for attaining a net-zero ship by 2050. Using alternative fuels will promote energy efficiency, such as switching to LNG, ammonia, and methanol. NYK plans to offset remaining emissions by purchasing CDR credits, combining reduction and removal strategies to meet climate goals.

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ENEOS Focused on Carbon Neutrality

ENEOS has a parallel commitment to achieving carbon neutrality. As part of its Carbon Neutrality Plan, the company aims to reduce CO2 emissions using CCS, forest absorption, and DACCS. ENEOS is also working on reducing emissions across society by promoting energy transitions to hydrogen, biofuels, and renewable energy. Additionally, the company plans to launch carbon offset fuels announced in January 2024, contributing to voluntary emission reduction efforts globally.

1PointFive is a leading CCUS company providing the DACCS technology that will underpin this partnership. The company's mission is to limit global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions like Direct Air Capture and AIR TO FUELS™ technologies. This partnership with NYK and ENEOS will play a key role in cutting emissions in the shipping industry as it transitions to more widespread low-carbon fuels.