Nippon Yusen Kabushiki Kaisha (NYK) has signed an agreement with the United States-based carbon removal start-up Graphyte, Inc. to purchase Carbon Dioxide Removal (CDR) credits. The credits will be generated by Graphyte’s large-scale “Loblolly” carbon removal project based in Arkansas.
The agreement forms part of the shipping group’s broader strategy to neutralise residual greenhouse gas emissions that cannot be eliminated through operational efficiencies alone.
The Loblolly project utilises a proprietary process known as carbon-casting. This technique involves drying and compressing biomass residues sourced from local agriculture, forestry, and wood processing industries.
By converting the carbon contained within these waste materials into a stable solid form, the process prevents decomposition. The biomass blocks are subsequently stored in secure underground repositories for long-term sequestration.
The CDR credits generated by this operation are certified through an independent third-party system of measurement, reporting, and verification to maintain transparency and reliability.
The shipping sector faces significant challenges in eliminating all greenhouse gas emissions. Whilst NYK is currently upgrading its fleet to transition from conventional fossil fuels to next-generation alternatives—such as liquefied natural gas (LNG), ammonia, and methanol—certain residual emissions remain unavoidable with current technology.
NYK intends to use the purchased CDR credits to offset these residual emissions as part of its structured commitment to achieve net-zero carbon dioxide emissions. The group has indicated that future offsetting initiatives will be guided by its official position paper on CDR credits, focusing on collaborative decarbonisation efforts alongside its commercial customers.
