Full-scale onboard carbon capture installations are already removing 30-40% of ships’ CO2 emissions, but a lack of port infrastructure to receive captured carbon remains the main obstacle to wider deployment, according to Lloyd’s Register.
Larger pilot projects are targeting capture rates of around 70% as onboard carbon capture and storage, or oCCS, moves beyond the concept stage towards commercial use.
The technology could provide an emissions-reduction option for ships that are likely to remain dependent on conventional petroleum fuels well into the 2030s.
Only around 4% of the near-zero greenhouse gas fuel-production capacity required by 2030 has reached final investment decision. Orders for alternative-fuel-capable vessels also fell from 45% of contracted tonnage in 2024 to 37% in 2025.
Lloyd’s Register sees the strongest retrofit case among ships with more than ten years of trading life remaining, significant exposure to carbon pricing, access to a credible CO2 offloading chain and sufficient onboard space for the equipment without unacceptable commercial penalties.
MR and chemical tankers trading in the European Economic Area are among the strongest near-term candidates, alongside LNG-fuelled ships that can use cryogenic cold energy released during LNG vaporisation to cool and liquefy captured CO2.
Short-sea and feeder vessels with frequent access to European Economic Area ports and exposure to carbon pricing are also identified as potential early adopters.
“The reality is that much of the fleet on order or in service today will still be operating well into the 2030s and beyond. While alternative fuels remain central to shipping's long-term decarbonisation strategy, shipowners also need practical options for reducing CO2 emissions from existing vessels,” said Panos Mitrou, senior vice president of shipping strategy at Lloyd’s Register.
“Onboard carbon capture has the potential to become an important part of shipping's decarbonisation toolkit. For the right vessel types and trades, it offers a realistic pathway to reducing CO2 emissions and managing carbon costs while fuel supply chains, infrastructure and regulations continue to evolve.”
The technology carries significant operational penalties. Current oCCS systems can increase fuel consumption by between 15% and 30% and require substantial space for capture equipment and CO2 storage.
Port reception infrastructure remains the weakest link. Carbon storage projects are progressing in north-west Europe, including North Sea networks, but relatively few ports can currently receive captured CO2.
The European Union Emissions Trading System allows captured and permanently stored CO2 to reduce compliance obligations, while FuelEU Maritime and future IMO rules are still evolving. Wider deployment will depend on the FuelEU Maritime Article 30 review, recognition of captured CO2 under a future IMO pricing framework and expansion of CO2 offloading infrastructure.
Lloyd’s Register is a maritime classification and professional services organisation operating through Lloyd’s Register Group Limited and its subsidiaries and affiliates.