The leaders of the Japanese shipbuilding industry joined forces with several of Japan's largest shipping companies to develop a standardized design for a liquid CO2 (LCO2) tanker. The effort aims to increase efficiency in building the ships to meet the sector's expected demand.
Analysts predict a strong and growing market for large commercial CO2 tankers. It is part of expected carbon capture and reuse or sequestration efforts. Only a few smaller airlines have been ordered so far, although orders are expected to rise rapidly in the second half of this decade.
The initiative is being carried out by MILES (Marine-design Initiative for Leading Edge Solution), a joint venture founded in 2013 by Mitsubishi Heavy Industries and Imabari Shipbuilding Co. It was originally founded for the development and sales of LNG (liquefied natural gas) tankers. The company was originally known as MI LNG Company, but was renamed in January 2025 to provide functional design for other emerging market segments. They said work would be added on commercial vessels using alternative fuels such as ammonia and methanol, as well as design development of new liquid CO2 carriers.
Joining the effort are Mitsubishi Heavy Industries and Imabari, as well as Nihon Shipyard Co., which has already worked with the group on a number of designs, and the Japan Marine United Corporation. Both also invest in MILES.
Among the shipping companies and operators, NYK and Mitsui OSK (MOL) as well as “K” Lines are also joining the initiative. All three will also invest in MILES to accelerate cross-industry collaboration.
The aim is to establish a standard design framework for the LCO2 carriers. According to the group, it will increase efficiency in the development and execution of the design for the first LCO2 carriers and the next generation of alternative fuel ships. MILES will be responsible for developing the initial designs so that other shipyards in Japan can also carry out functional and production design based on the joint initial designs. Their goal is to promote construction at multiple shipyards in Japan using the standardized design framework.
They report that the initiative is intended to help Japan restore its global competitiveness in the shipbuilding industry.
Nihon and Mitsubishi Shipbuilding had already begun joint development of new LCO2 tankers. In August 2024, the two companies, along with Kawasaki Kisen Kaisha (“K” Lines), Mitsui OSK Lines, NYK, Imabari Shipbuilding and Japan Marine United Corporation, had also begun joint studies to establish standard specifications and designs for LCO2 tankers.
Japan has also successfully used the approach of standardized designs shared across multiple shipyards in other segments. The shipyards build standardized bulk carriers and have been able to assert themselves in the market despite growing competition from China. The industry is committed to developing LCO2 carriers to meet the expected demand in this segment.