Horizons April 2021 preview

Issue 57, April 2021

Horizons.

Connecting tomorrow’s thinking to the challenges of today.

Richard Turner / British Antarctic Survey

CONTENTS

06

Decarbonisation.

Gas.

An in-depth look at the benefits, drawbacks and current status of ammonia as a potential marine fuel and the key takeaways from LR and Lloyd’s List’s shipping decarbonisation survey.

Find out how the conversion of a 2002-built LNG carrier could provide a solution for many island communities seeking alternative energy sources.

Decarbonising shipping – could ammonia be the fuel of the future?

24 06

Inland waterways.

Sizing up shipping sentiment on ecarbonisation. 12

We examine how retrofits and replacement tonnage could help address emissions concerns.

28

Read about Watson Farley & Williams’ latest report that highlights shipping’s drive and what is needed to meet GHG targets and evolving ESG criteria.

Who’s going to pay for shipping’s transition to zero-carbon?

14

Funding identified as key challenge in decarbonising shipping.

16

ESG rules, rather than IMO regulations, will nudge shipping to net zero.

18

A look at the UK’s largest commercial newbuild project for over 30 years.

30

As the offshore wind sector prepares for exponential growth in the U.S., find out how LR is harnessing opportunizties in this sector and we investigate underinvestment in the oil & gas market.

LR and NETSCo to develop WTIV design for U.S. market.

20

Decision-making and investment now may come at a price for oil & gas.

22

Huge potential to boost sustainable operation on inland waterways.

28

UK focus.

Offshore.

20

32

Britain’s new polar research ship, the RRS Sir David Attenborough, delivered to LR Class.

An update on our digitised Ship Plan and Survey Report Collection.

From our archive.

As the shipping industry looks to transition to a zero-carbon future, Charles Haskell, LR’s Decarbonisation Programme Manager, explains the benefits, drawbacks and current status of ammonia as a potential marine fuel. We also take a detailed look at the findings from our decarbonisation survey, conducted in collaboration with Lloyd’s List. Paul Stuart-Smith, Executive Director at Zero Carbon Finance, shares his thoughts on why decarbonising shipping will require forward-thinking companies to take commercial decisions based on robust analysis of climate-related risks and opportunities, driven by rapidly evolving ESG criteria. Sean van der Post, LR’s Global Offshore Business Manager, takes a look at the looming investment crisis facing the oil & gas market. James Pomeroy, LR’s Director of Quality, Health, Environment and Safety, reflects on the learnings the shipping industry can take from the coronavirus pandemic. Paul Carrett speaks to maritime technology start-up Greywing about how they responded to the coronavirus pandemic and the crew change challenges that came with it. The team has also worked with LR subject matter experts for insights into the U.S offshore wind sector, FSRUs and inland waterways. We also hear from experts at Nettitude and Hanseaticsoft about the latest trends in cyber security and digitalisation. Our designer for this issue is Kaz Kapusniak.

If you have any feedback or suggestions for upcoming issues of Horizons, we’d love to hear from you. Please get in touch with Paul Carrett at paul.carrett@lr.org.

Paul Carrett

Viv Lebbon

Paul Bartlett

Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates. Care is taken to ensure that all information provided is accurate and up-to-date.

However, Lloyd’s Register accepts no responsibility for inaccuracies in, or changes to, information. © Lloyd’s Register Group Limited, 2021. A member of the Lloyd’s Register group.

2 Contents

30

Lloyd’s Register Foundation Heritage & Education Centre.

Meet the team

Nicola Good

24

Ammonia-fuelled tanker JDP gets heavyweight support and a new name.

10

Industry viewpoint.

16

Cyprus LNG project – blueprint for the future?

32

36

38

Safety.

Digitalisation.

Find out how maritime technology start-up Greywing has helped over 25,000 seafarers to travel home and we reflect on the trends and learnings from the coronavirus pandemic.

How the COVID-19 pandemic has highlighted the need for digitalisation in the maritime industry and we examine the opportunities and challenges in assuring autonomous systems.

46

From piracy to protecting people’s wellbeing. 34

Making the case for cloud technology.

46

Health and safety: The year everything changed.

The rapid pace of autonomous technology applications in shipping.

50

36

Market outlook.

Spotlight.

How the global pandemic is playing out in maritime markets and global trade.

Assurance beyond Class.

Shipping winners and losers.

38

52

Cruise.

Carry on cruising.

42

Catch up on the latest developments at LR from our teams around the globe.

40

54

Cyber security.

52

LR and Avetics Global conduct remote inspection of an LNG Moss tank.

53

News.

Find out how LR is helping lines meet post-COVID challenges as cruising restarts.

40

Composite propeller design and analysis for naval ships.

What’s happening in our world.

54

Why addressing the risk to port infrastructure from cyber-attack has never been more critical and a look at why the shipping industry is lagging behind other industrial sectors in cyber security.

COVID disruption shows there’s no margin for error in port cyber security.

42

Shipping needs to raise its cyber game.

44

Horizons April 2021 3

CONTENTS

Hope springs forth.

Supporting performance during times of transformation.

In the northern hemisphere, we are nearing the end of a long hard winter, one complicated with lockdowns, limits on movement, and a universal fatigue from the onslaught of COVID-19.

Thankfully, seasons are turning; and new beginnings are within sight.

It’s been more than a year since our planet was plunged into the throes of this devastating pandemic, forcing us to rethink and recalibrate our routines. At that time I was based in Shanghai, and with China being the first nation to feel the force of the pandemic, it was truly challenging to keep our people safe and support our clients in the early days. I am now based in the UK, having taken over the role of Marine and Offshore Director from Nick Brown, who now leads LR as CEO. For all of us, there have been dark moments when we have been severely tested by the daily fight against disease.

Despite the upheaval, people around the world have shown tenacity and resilience. We have worked hard to

4 Comment

improvise, find solutions and have continued to perform notwithstanding so many obstacles. Without doubt, events of the past year have left a mark – we’ve all had time to reflect, re-evaluate our priorities and reposition our energies.

With national vaccination programmes rolling out across the globe, there is growing confidence that our world will open once more, and we will soon be able to re-embrace life’s more regular rhythms and meet up face to face.

As an industry on the frontline, maritime is more than familiar with the peaks and troughs of global trade. We have played a key role in maintaining global supply chains during these difficult pandemic months – at times to the enormous personal cost of the men and women at sea – and in spite of recent travails, there is a palpable optimism that the decade ahead promises a period of growth and renewal as many societies look to build back better, embracing sustainability concerns.

In my new role, I will be making significant investments in our classification, certification and verification services to better support our clients and their businesses as the technology and regulatory landscape evolves, shaping the future of class.

These are transformational times.

Our collective actions on safety and environmental challenges require considered attention. The astute and efficient use of data and technology is critical for our industry’s performance as we navigate the risks and opportunities ahead. Significant and sizeable investment decisions will be made this decade with supply chain stakeholders seeking impartial and expert advice. LR is committed to its strong partnerships across the ocean economy, working with you as a trusted advisor in support of our industry’s future performance.

Mark Darley Marine and Offshore Director, Lloyd’s Register

Change brings opportunity.

Seeking the right path for business benefits from change.

A year of incredible, unimaginable disruption has made everyone look again at what they do, and how they do it. It has also made us reappraise how we might approach the road ahead.

We are in an age of constant change given the increasing challenges around efficiency, sustainability and safety, but this is also an era of new opportunity, particularly if the right decisions are made. Finding the path to efficiency, in a complex and regulated industry is never easy. It requires a combination of technology and expertise. That’s what Lloyd’s Register’s Maritime Performance Services business aims to offer; trusted advice, backed by technological prowess, to help industry stakeholders navigate the challenges ahead. And one of our immediate areas of focus is the impact of the imminent Energy Efficiency Existing

Ship Index (EEXI) and what operational carbon intensity reduction requirements could mean for fleets in the future.

Environmental regulations focused on shipping’s decarbonisation are also helping to accelerate digitalisation.

Owners are more engaged with keeping track of fuel consumption and vessel performance and the growing use of sensors and other data collection technologies to gather quality, real-time information is increasing efficiency, reducing operating costs as well as emissions.

Furthermore, by aggregating siloed data and using analytics, data solutions can provide insights and outcomes to owners and operators to help reduce their overall operational expenditures, maintain their individual competitive advantage and

provide the transparency needed for environmental reporting.

Throughout the pandemic we have seen many organisations with a technology gap struggle to adapt to the changing circumstances. Many have worked hard to rectify such shortcomings.

So, technology is now front and centre, but it relies on the right interpretation of data, through human expertise and understanding, built on experience of our industry. When certainty is scarce, a trusted guide is vital; this is why LR is expanding its portfolio of fleet management and fleet optimisation services. We want to help you unlock and drive growth.

Andy McKeran Maritime Performance Services Director, Lloyd’s Register

Horizons April 2021 5