Beyond LNG to CO₂ Shipping Infrastructure

2 min read Notes Highly likely

As companies grapple with new climate technologies, traditional players have a unique advantage: they can leverage their heritage to anchor a new era in sustainability and energy security.

Höegh LNG, rebranded as Höegh Evi, exemplifies this. Once known primarily for liquified natural gas (LNG) shipping, Höegh is now making strategic moves into carbon and hydrogen transport with cutting-edge vessels. Here’s a breakdown of the key initiatives introduced in their 2023 annual report, paired with some personal reflections on history and heritage.

Beyond LNG

Traditionally known for floating LNG terminals, Höegh LNG is expanding its reach into clean energy infrastructure. The company is prioritising hydrogen and carbon transport/storage as part of its shift towards more sustainable operations. [p. 8]

Dual-purpose cargo solutions

In 2023, Höegh LNG introduced a groundbreaking hybrid floating storage and regasification unit (FSRU) concept. These vessels will be capable of distributing both natural gas and hydrogen, representing the future of versatile energy transport. [p. 10]

CO₂ transportation

A strategic partnership with Aker BP focuses on developing liquified carbon dioxide (LCO₂) transport and storage solutions. This collaboration is set to launch floating CO₂ storage units (FCSO), tackling industrial emissions across Europe, with a market rollout expected between 2028 and 2029. [p. 10]

Ammonia to hydrogen technology

Höegh LNG is also exploring hydrogen production through ammonia conversion. A pilot plant is expected to be operational in 2024, paving the way for large-scale floating ammonia-to-hydrogen technology by 2028. [p. 9]

Multi-cargo vessels for the energy transition

Another key innovation is the development of multi-cargo vessels. These versatile ships will be able to transport CO₂, hydrogen, and natural gas, offering a future-proof solution as the energy landscape evolves. [p. 16]

Energy security meets the transition

Amid a surge in LNG demand across Europe, Höegh LNG responded by commissioning three new import terminals in 2023. These terminals are not only critical for energy security but also pave the way for a gradual shift to clean energy alternatives. [p. 9]

2028 vision

By 2028, Höegh LNG plans to lead in decarbonization technologies, offering top-tier carbon capture and storage (CCS) solutions and dual-purpose vessels. This initiative will position them at the forefront of the global clean energy transition. [p. 10]

Sustainability commitment

Höegh LNG aims to reduce carbon emissions by 50% and operate its first net-zero FSRU by 2030. Their impressive 5-star GRESB rating, with a perfect score of 100, highlights their dedication to ESG and sustainability principles. [p. 9]

Reflections on heritage and innovation

As I follow Höegh’s journey, I’m reminded of my own family’s maritime legacy. My 10th grandfather was a Danish merchant and shipowner who assembled a fleet to defend the King’s interests during the Thirty Years’ War, later navigating the Mediterranean to outsmart Spanish pirates. Over centuries, much of that expertise faded—but Höegh’s evolution brings this history to mind. Here’s a family business building on generations of knowledge, pushing boundaries in the energy sector.

It’s a powerful reminder that each generation has the opportunity to build on the work of the last, ensuring that valuable expertise is not just preserved but innovated upon. Höegh’s journey shows that sustainability isn’t only about new technologies—it’s about blending resilience with forward-thinking.

That leaves me with a question: How does your family history shape the way you view sustainability and innovation?