Carbon capture gains regulatory backing

The project, which completed the world’s first end-to-end demonstration of an onboard captured and liquefied CO2 (LCO2) value chain in June 2025, has secured recognition under the European Union Emissions Trading System (EU ETS) while also receiving in-principle backing from the IMO for carbon mineralisation as a permanent CO2 storage pathway.

The pilot demonstrated that carbon dioxide captured on board a vessel can be offloaded ship-to-ship, transported overland and permanently bound through carbon mineralisation, a process that converts the gas into stable materials suitable for industrial applications.

“Project CAPTURED has moved OCCS beyond technical demonstration,” said Professor Lynn Loo, chief executive of the Global Centre for Maritime Decarbonisation.

“The acceptance of the EU ETS deduction gives captured CO2 a compliance value. At the same time, IMO’s in-principle support for carbon mineralisation will help clarify how captured CO2 can be treated after it leaves the vessel.”

Under the EU ETS, the verified volume of CO2 captured during the demonstration can now be deducted from emissions requiring the surrender of EU Allowances, provided the carbon is permanently chemically bound in eligible products.

Meanwhile, the proposal submitted to IMO’s Marine Environment Protection Committee (MEPC 84), based on the project’s findings, received in-principle support for recognising carbon mineralisation alongside geological sequestration as a form of permanent CO2 storage.

“Project CAPTURED has demonstrated that captured CO2 can be transferred from ship to ship and converted into construction material,” said Dr Su Yi, general manager of SMDERI-QET.

“The IMO’s support in principle for carbon mineralisation means that our pathway is repeatable, offering a feasible blueprint for future emissions reductions in the shipping industry.”