A preliminary deal – in the form of a Memorandum of Understanding – has been signed between shipowners Navigator Holdings and Bumi Armada for the potential development of a joint venture which could offer shipping and injection services in the UK’s carbon capture and storage market.

Through the partnership, Navigator, an owner of liquefied gas carriers, and floating energy infrastructure specialist Bumi Armada aim to create Bluestreak CO2, a new company which each partner would have a 50% stake in. The newly established business would offer end-to-end solutions for carbon emitters to capture, transport, sequester and store CO2 through the UK’s Industrial Decarbonization Strategy.

Once established, Bluestreak seeks to construct an entire fleet of CO2 shuttle tankers which is capable of delivering volumes of CO2 to a floating carbon storage and injection unit. The company’s supply chain approach aims to serve businesses which do not have access to pipeline infrastructure. An estimate carried out by the duo suggests that emitters of approximately 30 million tons of CO2 per year are outside of CCS clusters with available infrastructure.

“This collaboration is a testament to our strong commitment towards providing the best decarbonization solutions globally,” commented Gary Christenson, chief executive of Bumi Armada.

“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,” said Mads Peter Zacho, chief executive, Navigator. “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 decarbonization strategy.”

The transaction is still subject to a definitive joint venture agreement approved by both companies. It is estimated that this will be agreed by the end of 2023.