Japanese shipping company acquires carbon absorption certificates to counterbalance emissions discharge
Japanese Shipping Company NYK Buys Carbon Credits to Address Residual Emissions
In a significant move towards decarbonisation, the Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK) has purchased carbon dioxide removal (CDR) credits from carbon capture, utilisation, and sequestration (CCUS) company 1PointFive.
The CDR credits will come from STRATOS, the largest direct air capture (DAC) facility in the world, which is set to come online later this year. STRATOS is designed to capture up to 500,000 tonnes of carbon dioxide annually, making it the world's largest DAC facility, according to 1PointFive.
Akira Kono, Representative Director and Executive Vice-President of NYK, emphasised the company's decarbonisation efforts. Kono stated that addressing residual emissions requires carbon dioxide removal (CDR). NYK believes that if 10% of the carbon emissions remain as residual emissions after operational emission reductions, then the industry would need to remove 100 million tonnes via CDR each year.
This purchase marks a significant step for NYK in its efforts to reduce carbon emissions. The company is already operating fuel-efficient vessels, adopting low-carbon fuels like biofuels, and improving operational efficiency to reduce carbon emissions.
1PointFive's CDR credits are produced from the STRATOS facility. In the past, the company has signed CDR agreements with tech giants like Microsoft, Amazon, JPMorgan Chase, and California-based cybersecurity company Palo Alto Networks.
The international shipping industry emits approximately one billion tonnes of CO2 annually. The Japanese gas market is experiencing growth driven by increasing investments in Power-to-Gas (P2G) technologies, which convert electricity into synthetic gases like hydrogen and methane for cleaner energy use. The global P2G market is expected to grow significantly, reaching $89.37 million by 2032 with a compound annual growth rate (CAGR) of 10.45%, reflecting increased focus on decarbonization and reduced fossil fuel dependency.
As the world continues to grapple with the impacts of climate change, initiatives like NYK's purchase of CDR credits from 1PointFive are a step in the right direction towards a more sustainable future.
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