GCMD: Project CAPTURED Clears Regulatory Pathways for Onboard Captured CO2

Project CAPTURED has secured key regulatory milestones to strengthen the commercial case for Onboard Carbon Capture and Storage (OCCS). Under newly confirmed frameworks, verified volumes of CO2 captured at sea and permanently bound via carbon mineralization can now be deducted from a vessel’s EU Emissions Trading System (EU ETS) compliance obligations. Additionally, the International Maritime Organization (IMO) has granted in-principle support for recognizing carbon mineralization as permanent storage, broadening downstream offloading pathways and giving captured carbon tangible compliance and feedstock value.

Singapore | July 22, 2026 – In a major development for maritime decarbonization, Project CAPTURED has secured two regulatory breakthroughs that significantly enhance the commercial and operational viability of Onboard Carbon Capture and Storage (OCCS).

Following its world-first, end-to-end demonstration of offloading and processing onboard captured liquefied carbon dioxide (LCO2​), the initiative has now been granted formal compliance recognition under the European Union Emissions Trading System (EU ETS), alongside in-principle support from the International Maritime Organization (IMO).

Led by the Global Centre for Maritime Decarbonisation (GCMD) in partnership with an 11-member cross-industry coalition, the project has effectively turned OCCS from an experimental technical trial into a recognized regulatory mechanism with direct financial value for shipowners.

1. EU ETS Grants Emissions Deductions for Onboard Capture

Under the newly confirmed regulatory interpretation, CO2​ captured onboard vessels and subsequently bound through permanent carbon mineralization can now be deducted from a vessel’s total emissions profile for EU ETS compliance.

This decision allows shipowners to reduce the number of European Union Allowances (EUAs) they must surrender at the end of a compliance period, providing a direct, tangible financial offset to offset capital and operational expenditures associated with installing OCCS systems.

To qualify for EU ETS deductions:

• Captured CO2​ must be permanently locked into eligible downstream products via chemical binding.
• The custody transfer chain must maintain absolute traceability and high purity standards.

Project CAPTURED satisfied these criteria by proving that captured CO2​ can be offloaded, transported, and permanently mineralized into stable, construction-grade materials.

2. IMO Signaling Support for Carbon Mineralization at MEPC 84

Building on data gathered during the trial, project partners submitted a comprehensive technical proposal to the IMO’s Marine Environment Protection Committee (MEPC 84). The committee responded with in-principle support for recognizing carbon mineralization as a permanent form of CO2​ storage under international maritime frameworks.

Historically, maritime OCCS discussions have centered heavily on deep geological sequestration (such as depleted oil wells or subsea aquifers). IMO’s signal toward mineralization broadens the downstream scope significantly:

• Expanding Infrastructure Access: Vessels offloading LCO2​ are no longer tied exclusively to specialized offshore injection terminals; they can utilize onshore industrial mineralization facilities.
• Feedstock vs. Waste: Mineralization transforms captured carbon from a pure waste stream into an industrial feedstock, creating circular economy opportunities in the building materials and manufacturing sectors.

Technical Performance & Pilot Execution

Completed in June 2025, the landmark trial demonstrated the complete logistics chain: capturing CO2​ onboard, executing a ship-to-ship offloading operation, transporting the gas overland, and processing it via industrial mineralization.

Key Metrics from the GCMD Life Cycle Assessment (LCA)

• CO2​ Purity: Maintained >99.95% vol across all custody-transfer points, proving operational integrity during offloading and transfer.
• Gross Capture Rate: The onboard capture unit demonstrated a 10.7% gross capture rate during the pilot.
• Net GHG Reduction: The pilot achieved an immediate 7.9% net greenhouse gas (GHG) reduction across the full life cycle.
• Optimized Potential: GCMD’s LCA model indicates that an optimized, commercial-scale value chain operating at the same 10.7% gross capture rate could deliver net GHG savings of up to 17.8%.

Professor Lynn Loo, CEO of GCMD, said “Project CAPTURED has moved OCCS beyond technical demonstration. 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. Together, these milestones turn a pilot into a verified reference case for maritime carbon logistics, one that links regulatory recognition, commercial value and emissions impact.”

Dr. Su Yi, General Manager of SMDERI-QET, said “Project CAPTURED has demonstrated that captured CO2​ can be transferred from ship to ship and converted into construction materials. We have now taken a further step by achieving carbon deductions under the EU ETS, which means we have further explored the possibilities of the maritime carbon value chain. 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.”

Strategic Significance for Marine Fuels & Carbon Logistics

For the marine energy and bunkering sectors, Project CAPTURED establishes a blueprint for future offloading and carbon handling standards:

• Bunkering Infrastructure Parallelism: The success of ship-to-ship LCO2​ transfer suggests that bunkering hubs could eventually integrate dual-function operations, delivering low-carbon fuel while simultaneously receiving offloaded LCO2​ from arriving vessels.
• Alternative Pathway alongside Green Fuels: While green ammonia, e-methanol, and biofuels remain central long-term strategies, OCCS combined with mineralization offers immediate emissions-abatement options for the existing legacy fleet burning conventional fuel oils.

Project Partners & Coalition

Orchestrated by the Global Centre for Maritime Decarbonisation (GCMD) in Singapore, Project CAPTURED relies on a broad consortium spanning ship management, research institutes, and industrial logistics. Key partners involved include:

• SMDERI-QET
• Evergreen Marine Corp
• Zhoushan Dejin Shipping
• Greenore / Baorong

About the Global Centre for Maritime Decarbonisation (GCMD)

The Global Centre for Maritime Decarbonisation (GCMD) was established as a non-profit organisation on 1 August 2021 with a mission to support the decarbonisation of the maritime industry by shaping standards, deploying solutions, financing projects, and fostering collaboration across sectors.

• Founders: BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express and Seatrium.
• Funding: GCMD receives funding from the Maritime and Port Authority of Singapore (MPA) for qualifying research and development programmes and projects.
• Strategic Partners: bp, Hanwha Ocean, Hapag-Lloyd, NYK Line and PSA International have joined as Strategic partners.
• Initiatives: GCMD has launched key initiatives to close technical and operational gaps in: deploying ammonia as a marine fuel, developing an assurance framework for drop-in green fuels, unlocking the carbon value chain, and closing the data-financing gap for energy efficiency technologies.
• Location: Strategically located in Singapore, the world’s largest bunkering hub and busiest transshipment port.

Source: Global Centre for Maritime Decarbonisation