Lloyd’s Register (LR) has identified limited port infrastructure for receiving captured carbon dioxide (CO₂) as the biggest obstacle to wider deployment of onboard carbon capture and storage (oCCS) across the global shipping fleet.
In a new report, LR said onboard carbon capture has moved beyond the concept stage, with full-scale systems currently capturing around 30–40% of a vessel’s CO₂ emissions, while larger pilot projects are targeting capture rates of about 70%.
Technology Moves Toward Commercial Deployment
LR said oCCS could provide a practical emissions-reduction option for ships that are expected to remain in service through the 2030s, particularly as the availability of alternative fuels remains limited.
The technology is most suited to vessels with more than 10 years of remaining trading life, significant exposure to carbon pricing, adequate space for capture equipment and access to a reliable CO₂ offloading chain.
The report identifies MR and chemical tankers operating on European Economic Area routes, LNG-fuelled vessels and short-sea or feeder ships as the strongest near-term candidates.
Ports Remain the Weakest Link
Despite advances in onboard technology, LR said the lack of facilities capable of receiving captured CO₂ is holding back commercial deployment.
Captured CO₂ must be safely offloaded from ships and subsequently transported for permanent storage or utilisation. However, port infrastructure and operational procedures for handling liquefied CO₂ remain limited.
An earlier LR study with the Global Centre for Maritime Decarbonisation and Arup similarly identified low port readiness as a major barrier, noting that infrastructure and procedures for handling captured CO₂ at ports were inadequate for large-scale deployment.
Fuel and Space Penalties
Shipowners also face technical and economic challenges when retrofitting oCCS systems.
LR said current systems can increase fuel consumption by around 15–30%, while capture equipment and onboard CO₂ storage can require substantial space. These factors mean that retrofit decisions need to be assessed individually based on vessel type, trading patterns, remaining operating life and carbon-cost exposure.
LNG-fuelled ships have an advantage because they can potentially use cryogenic cold energy generated during LNG vaporisation to help cool and liquefy captured CO₂.
Regulatory Clarity Needed
LR also highlighted regulatory uncertainty as another factor influencing investment decisions.
Captured and permanently stored CO₂ can already reduce compliance obligations under the EU Emissions Trading System in certain circumstances, but rules under FuelEU Maritime and future IMO regulations are still developing.
LR said broader adoption will depend on progress in three areas: the review of FuelEU Maritime’s Article 30 provisions, recognition of captured CO₂ under future IMO carbon-pricing mechanisms and expansion of CO₂ offloading infrastructure.
Infrastructure Investment Critical
The findings suggest that developing onboard capture technology alone will not be sufficient to make oCCS a mainstream maritime decarbonisation solution.
Ports, terminals and offshore facilities will need systems capable of safely receiving, storing and transferring captured CO₂, while shipping operators require clear regulatory rules and commercially viable carbon-storage pathways.
With many existing vessels expected to continue operating on conventional fuels into the 2030s, LR believes oCCS could become an important part of shipping’s transition strategy—provided the infrastructure and regulatory framework develop alongside the technology.