High-Trend International Group Announces Strategy Update for Onboard Carbon Capture in the Shipping Industry

Rhea-AI Summary

High-Trend International Group (NASDAQ: HTCO) has announced a strategic update focused on developing Onboard Carbon Capture (OCC) systems for the shipping industry. The company plans to transform into a key provider of carbon neutrality solutions, including designing and installing carbon capture equipment, CO2 transportation, and carbon credit trading. The initiative will be funded through existing cash, cash flow, and joint ventures. The global carbon capture and storage market, valued at $8.8 billion in 2024, is projected to grow at a 16.7% CAGR from 2025-2034. This strategic shift aligns with the International Maritime Organization's new framework targeting net-zero greenhouse gas emissions by 2050, which will be mandatory for ships over 5,000 gross tons that account for 85% of shipping emissions.

Positive

• Strategic expansion into the growing carbon capture market with 16.7% projected CAGR
• Alignment with IMO regulations creates strong market demand for their solutions
• Multiple revenue streams planned: equipment design, installation, CO2 transport, and carbon credit trading
• Company has existing cash reserves and ongoing cash flow to fund the transformation

Negative

• Significant transformation from current business model carries execution risks
• Heavy dependence on regulatory implementation and enforcement
• Potential competition in an emerging market space
• No specific timeline or revenue projections provided for the new initiative

Insights

Environmental Technology Investment Analyst

High-Trend's pivot to onboard carbon capture represents a strategic business transformation targeting a rapidly growing $8.8B market with regulatory tailwinds.

High-Trend International (HTCO) is executing a strategic pivot from traditional shipping services toward providing onboard carbon capture (OCC) systems—a significant business transformation that aligns with intensifying regulatory pressures in maritime emissions. This repositioning isn't merely incremental; it represents a fundamental shift in their business model.

The market opportunity is substantial—the carbon capture and storage market valued at $8.8 billion in 2024 is projected to grow at a 16.7% CAGR through 2034. This growth trajectory is being accelerated by the International Maritime Organization's (IMO) regulatory framework targeting vessels over 5,000 gross tons, which account for 85% of shipping emissions.

What makes this particularly compelling is the IMO's 2023 upward revision of carbon reduction targets, aiming for net-zero emissions by approximately 2050. This creates an international regulatory environment that effectively mandates technological solutions like High-Trend's proposed systems. The company's comprehensive approach—spanning equipment design, installation, carbon transportation, and carbon credit trading—positions them for multiple revenue streams within this emerging value chain.

The funding strategy leverages existing resources (cash reserves and operational cash flow) supplemented by joint ventures, suggesting a measured approach that balances risk while enabling market entry. This indicates financial discipline in how they're approaching this transformation without immediately diluting shareholders or taking on significant debt.

While the announcement lacks specific timelines or investment figures, the strategic rationale is sound given the regulatory-driven market opportunity. The move represents a calculated bet on accelerating decarbonization mandates in global shipping.

SINGAPORE, May 12, 2025 /PRNewswire/ -- High-Trend International Group ("High-Trend" or the "Company") (NASDAQ: HTCO), a global ocean technology company that engages in international shipping services and new carbon neutral ocean technologies, today announced an update of its strategic plan regarding its Onboard Carbon Capture (OCC) systems to capture carbon dioxide (CO2) in the shipping industry. The Company is actively developing a business of providing carbon neutrality solutions for the shipping industry due to an expansive market opportunity as a result of heightened regulatory trends regarding carbon emissions.

Shixuan He, Chief Executive Officer of High-Trend, commented, "We are in the process of implementing a strategic plan to transform our business to become a key provider of onboard carbon capture solutions to work with existing ship fuel and exhaust systems. This would include designing and installing carbon capture equipment, transporting captured carbon dioxide and participating in carbon credit trading. We intend to fund this strategic transformation through our existing cash balance, ongoing cash flow and joint venture partnerships. This initiative constitutes a practical solution to help decarbonize the shipping industry and to capitalize upon what we believe to be a dynamic market opportunity."

According to Global Market Insights, a global market research and management consulting firm, the overall carbon capture and storage market was valued at approximately $8.8 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 16.7% from 2025 to 2034.  The International Maritime Organization's (IMO) new framework, set to become mandatory for ships of over 5,000 gross tons that account for 85% of shipping emissions, is expected to significantly accelerate investment and adoption of carbon capture technologies within the maritime sector. In July 2023, the IMO revised upwards its carbon emission reduction targets which aims for net-zero greenhouse gas (GHG) emissions from international shipping by or around 2050. The regulations are designed to apply internationally, ensuring a level playing field and avoiding regional regulatory fragmentation.

About High-Trend International Group

High-Trend International Group ("High-Trend" or the "Company") is a global ocean technology company with businesses in international shipping and marine carbon neutrality. The Company connects the decarbonization needs of the maritime industry with the supply of the carbon finance market through technology ecosystem, creating a new paradigm for maritime sustainability.  

Forward Looking Statements

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Such statements include, but are not limited to risks detailed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended October 31, 2024. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All information provided in this press release is as of the date of the publication, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/high-trend-international-group-announces-strategy-update-for-onboard-carbon-capture-in-the-shipping-industry-302452148.html

SOURCE High-Trend International Group

FAQ

What is HTCO's new strategic plan for carbon capture in shipping?

HTCO plans to become a key provider of onboard carbon capture solutions, offering services including carbon capture equipment design and installation, CO2 transportation, and carbon credit trading.

How big is the carbon capture market potential for HTCO?

The global carbon capture and storage market was valued at $8.8 billion in 2024 and is expected to grow at a 16.7% CAGR from 2025 to 2034.

How will HTCO fund its carbon capture business transformation?

The company plans to fund the strategic transformation through its existing cash balance, ongoing cash flow, and joint venture partnerships.

What are the IMO regulations driving HTCO's carbon capture strategy?

IMO regulations mandate carbon emission reductions for ships over 5,000 gross tons (85% of shipping emissions) and target net-zero greenhouse gas emissions by 2050.

Who is the CEO of High-Trend International Group (HTCO)?

Shixuan He is the Chief Executive Officer of High-Trend International Group.