Who is leading the way in alternative fuels?
The latest innovations to help the industry meet its targets
The partnerships and projects tackling decarbonisation
PureteQ A/S and China Shipbuilding Power Engineering Institute Co., Ltd. (CSPI) have entered a partnership within production of maritime scrubber systems.
THE BEST OF TWO WORLDS
PureteQ is responsible for design, engineering, class approval, sea trials, as well as supervision, and provides the main scrubber panel and control software. CSPI manufactures the scrubber tower according to PureteQ’s specifications and is responsible for installation and commissioning in China.
With this setup you get a cost competitive, highquality product with first-rate EGCS design and performance, and low operational expenditure.
In addition, PureteQ’s offices in Europe and Asia provide prompt worldwide support and after-sales service. Our expert team of marine engineers assist shipowners and operators in safeguarding continuous operation, reliability, and MARPOL compliance of all brands of scrubbers, either onsite or via the safe PureteQ remote system.
To help combat climate change we are committed to continuously optimize our systems and invest in research and development of new technologies within the fields of Carbon Capture and Powerto-X. PureteQ Maritime Scrubbers therefore now come as onboard carbon-capture-ready.
There has been much activity on the regulatory front recently, particularly when it comes to putting in place environmental procedures.
Needless to say, not all of them are meeting with approval, either from those who are having to implement them in their own businesses or from pressure groups that believe the maritime industries should be doing more, and more quickly.
New legislation set to come into force in the years ahead includes a new Oceans Treaty agreed in June this year, which aims to ensure marine biodiversity on the high seas, where individual countries’ legislation does not apply. Other rules set to become active include the recycling convention, which has obtained the necessary number of signatories to proceed to the implementation stage. The EU parliament, meanwhile, has also been active in recent months regarding the Nature Restoration law.
The FuelEU initiative – widely heralded as the EU’s most ambitious green legislation – has also moved to the next stage in recent months, although it is attracting a certain amount of criticism from environmental groups, which say that targets outlined for implementation are not ambitious enough.
Needless to say, such criticism is not new to the sector, as irrespective of who is tabling the legislation and what segment it applies to, there are many who feel that it is question of too little too late. This view is one that the industry has had to battle with on many occasions.
The need to tackle new legislation efficiently has led to many industry initiatives where players team up to provide a solution. For example, maritime data firm OceanScore has recently unveiled a solution that will enable ship operators to manage emissions liabilities as well as trade carbon allowances under the EU Emmissions Trading System (ETS) regime.
The Hamburg-based firm has developed the web-based ETS Manager to manage and monitor the entire process from automatically ingesting vessel operational data, assessing the need for EU Allowances (EUAs), allocating them to owners or stakeholders, requesting and accounting for them, and tracking open positions. It incorporates the advanced trading tool EUA Trader to buy and sell EUAs.
And Shell, in collaboration with Deloitte, has recently released its report All Hands on Deck 2.0, which focuses on six tangible actions to accelerate the decarbonisation of the shipping industry.
A number of similar initiatives, where the industry is coming up with its own self- help strategies, are to be found in this edition of Clean Shipping International. We hope you enjoy reading about the many schemes and innovations being proposed by the industry in the green shipping arena, as well as new advances in alternative fuels.
Editor: Sandra Speares speares1@aol.com
Project Director: Jonathon Ferris jonathon.ferris@ cleanshippinginternational.com
Sub-editor: Samantha Robinson sam.robinson.journalist@ gmail.com
Publisher: Bill Robinson publisher@ cleanshippinginternational.com
Designer: Justin Ives justindesign@live.co.uk
Published by Maritime AMC, Clean Shipping International supports Clean Shipping Initiatives.
The views expressed in Clean Shipping International are not necessarily those of Maritime AMC unless expressly stated as such and disclaim any responsibility for errors or omissions or their consequences or for advertisements contained in this magazine and has no legal responsibility to deal with them.
Distributed to the members of CLEANSHIPPINGALLIANCE2020
Sandra Speares on why new regulations often cause a stir on all sides
05 WELCOME
Don Gregory, Director, Exhaust Gas Cleaning Systems Association
07 NEWS
All the latest news and views from across the globe
16 EGCS
Exhaust gas cleaning systems continue to provide an alternative solution to the issues surrounding emissions
22 DECARBONISATION
Decarbonisation is not just being driven by new legislative initiatives, but also by pressure from outside forces
27
Viewpoint: Eric Christofferson, chief product officer, Veson
» 16
How monitoring systems help to ensure the maritime industry can meet targets, whether environmental or financial
The ballast water treatment systems industry is growing, helped by new markets and exciting innovations
» p29
The competition continues to heat up among companies offering alternative fuels that claim to be more eco-friendly.
» 36
There have been a number of initiatives in recent months aimed at promoting this growing segment
» p45
45 Viewpoint: GAC Norway
Insurers draw attention to the life-threatening hazards caused by enclosed and confined spaces
Many of you who live in cities will be familiar with the acronyms LEZ and ULEZ, standing in English for “Low Emissions Zone” and “Ultra Low Emission Zone”. London recently enforced a ULEZ and cities across the world have or are beginning to put in place emissions control zones aimed at on-road transport.
For the majority, myself included, it is usually not clear exactly what emission(s) are being controlled or reduced or what future benefits have resulted from previous controls. For example, the LEZ has been in force in London for several years.
In 1952, London suffered a crippling smog event (smoke and fog) for five days. It resulted in 12,000 premature deaths. The factors that led to the event were dense fog from a high pressure weather pattern causing a temperature inversion, mixing with smoke from the use of coal for industrial activities in London as well as home heating.
That event caused government to enact legislation requiring the use of smokeless fuel or technology to remove the contributory emissions post combustion, (soot). There is no doubt that the legislation was effective as London no longer suffers from smog.
On the other side of the world in China, prior to the Beijing Olympic games, many coastal and industrial cities had atmospheres constantly darkened by emissions of particles. Prior to the Olympics, China took swift action closing sources (industrial plant) and subsequently
requiring cleaner combustion or post combustion gas filtering.
In both the London and China events, the benefits of cleaner air were visually evident as soon as action was enacted and enforced. You could argue that the cost/benefit was also evident. But the latter depends on what was defined as the benefits and how costs are measured. Perhaps from the city population point of view, living in a smog-free and bright atmosphere is beneficial in many ways, not least the health benefits. In these examples, the costs were absorbed. It also appears that in the long run the costs became cost-neutral or negative, in other words the long-run costs were less than the long run benefits.
The reduction in smoke emissions has fairly obvious and available pathways to achievement. Move industry away from conurbations, reduce emissions and regulate allowable smoke/ particulate emissions.
But as you might agree, as the more obvious emissions have been regulated, it is becoming ever harder to properly evaluate and ensure effort is properly focused on the next most important emissions to reduce and target. Questions arise such as: Are these new compounds really worth reducing? Are there better and more significant targets to focus upon? Does the targeting of some emissions have a detrimental effect on the impact of other emissions? And should governments prescribe solutions to managing future
emissions or take goal-based approach on targeted emissions and controls?
One method of control that is being widely used to supposedly drive change is financial. Whether it is a levy or an emission credit, there is a serious risk that these initiatives become simply a cover for taxation by stealth. In the UK, taxation is not fungible. That means that taxes cannot and are not allocated to expenditure. So, a tax on carbon emissions goes into the treasury coffers and is spent as judged prudent by the treasury following applications for funds from interested government departments and third parties.
The risk with this approach is that at some point the levy or other fee that is used to justify an emissions restriction may not provide the air quality returns, but instead drive up the cost of living.
The introduction in London of the ULEZ has caused the first major reaction in the UK against the increasing cost of living, with many of the ULEZ-monitoring camera sites being vandalised or put out of service by the public.
In this particular example the study regarding cost/benefit commissioned by the Mayor of London reported that the benefits of the ULEZ would be “minimal to negligible”, further enhancing the belief that the ULEZ fee is a stealth tax.
As the complexity of emissions becomes greater it seems that there is no perfect way to regulate effectively. Each method of regulation has its challenges.
Perhaps there is a better way to identify and prioritise air emissions policy and planning is by using an emissions solutions pathway approach.
The Greenhouse Gas (GHG) challenge facing the maritime sector is a case in point. Apart from the nuclear option it is likely that for the foreseeable future the marine diesel engine will be the pre-eminent prime mover.
What is not so clear is the source of energy it will combust. It seems that there is a paucity of fuel ideas
being explored. The few fuels, that are mentioned include ammonia, hydrogen, methanol and some form of oil fuel from a renewable source. There is little or no mention of a synthesised hydrocarbon fuels which after all is said and done, has been the fuel of choice for over 100 years in diesel engines due to its energy density and convenience, as well as safe handling and storage. Such fuels do contain carbon, but that carbon is recycled from carbon capture. So at least in part it is an energy carrier rather than a potential GHG.
commonly touted zero-carbon fuels in which she has analysed the energy needed from renewable sources to create fuels such as ammonia and diesel. The demand for renewables to make these fuels and the overall extremely poor energy efficiency is very worrying.
If ships switched to synthesised diesel fuel it would triple the global marine energy consumption. But synthesised diesel would not suffer all the additional challenges of handling, storage, energy density, combustion and emissions issues that are present with, for example, ammonia or hydrogen.
A pathway approach would have all the information available and enable those who need to make decisions and invest be able to do so with a much more comprehensive knowledge base.
A pathway approach, would ensure that there is a much wider common and quite detailed understanding of the energy options and the consequences of each choice. By using the pathway approach Dr Lindstad has concluded that focusing on reducing GHG in the maritime sector is unwise and a very ineffective use of resources.
In the absence of using a pathway approach, governments are adopting past methods of regulation: placing a tax on ship GHG emissions or rating ship’s carbon efficiency and generating revenue from the ships that fail to meet the targets. This can work when the solutions to reducing in this case GHG emissions is obvious and available. But that is not the case for maritime GHG emissions.
So, it seems what is missing today is all the information needed to make decisions on achieving compliance. A systematic approach that provides a multitude of pathways with end-toend assessment of cost, feasibility, technology readiness, risk etc ought to be immensely valuable in terms of providing a common understanding of the options.
The eminent Dr Elizabeth Lindstad of Sintef has published studies of the
This is not a conclusion that goes down well with those who claim that every sector must make the same percentage reductions. But the inconvenient truth is that making reductions in GHG early will mean less demanding targets in the future and a reigning back of the rate of rise of CO2 in the atmosphere.
Shipping will need to reduce GHG emissions, but maybe at the present time its resources might be better targeted on other emissions leaving renewable energy sources, principally renewable electricity, to be used more efficiently in other applications for GHG reductions.
Thus, a pathway approach may assist in defining better and more cost-effective policy and regulations to limit the emissions of other toxic compounds present in diesel engine exhaust gases, while accepting reducing GHG will have to be a longer-term achievement.
A pathway approach would ensure that there wider common understanding of the energy
There have been plenty of new developments in the clean shipping arena during recent months, including a report on bunker discrepancies released by FuelTrust and a new oceans treaty
Technology company FuelTrust has released a new report examining bunker discrepancies in the maritime industry, which includes examples of unethical practices and fraudulent activities related to bunkering.
FuelTrust’s analysis found that between 2021 and 2022, more than 39% of global bunkers exhibited a fuel content delta of 2% or more compared with the amounts stated in their delivery paperwork. The primary issue identified was the introduction of water into the fuels during the journey from onshore storage tanks to the ship’s bunker tank. This problem typically involved an increase from 0.1% to above 0.25% water content, which, although below the regulated threshold, still resulted in average losses of $14,910 per affected delivery.
The maritime fuel market has a long history of not being transparent. Bunker fuels account for more than 50% of a vessel’s operational expenses, meaning fraudulent practices and inadequate supply chain management can significantly affect the profitability of vessel owners and
charterers, and fuel suppliers. Just recently, 11 ships lost propulsion, and more than 100 ships were affected in a single incident of fuel contamination in Houston. Even fuel considered “on-spec” (meeting specified quality standards) experiences volume or content issues, leading to financial losses or engine problems. In the past year, over 600 vessels were disabled through fuel problems, despite the fuel being ‘on-spec’, resulting in estimated global supply chain losses exceeding $5bn. Both fuel suppliers and shipowners incurred financial losses, which are difficult to detect and make claims against.
FuelTrust’s AI-based approach to creating a trusted fuel ecosystem through transparency and traceability addresses the challenges in the fuel supply chain, particularly in the maritime sector. By providing visibility into the final outcomes of fuel products, fuel suppliers can better understand and validate their offerings, while fuel buyers can combat fraud, minimise losses, and mitigate environmental risks.
Jonathan Arneault, CEO and cofounder of FuelTrust comments: “This new research across the global bunkering market emphasises the need for better transparency. By providing visibility, traceability, and security throughout the fuel supply chain, FuelTrust is improving operational efficiency, helping reduce environmental impact, and fostering trust among all stakeholders.
“As the latest contamination case demonstrates, it’s essential that ship owners, bunker suppliers and charterers can gain better insight into their fuel supply chains. Better information on the fuel we use is also a foundational block of any serious greenhouse gas-reduction strategy.” Read the full report at: tinyurl.com/CSI-FuelTrustReport
The International Maritime Organization (IMO) has welcomed the adoption of a landmark agreement on a new oceans treaty to protect marine biodiversity on the high seas.
The new legally binding international instrument on the conservation and sustainable use of marine biological diversity in areas beyond national jurisdiction – known as BBNJ – was adopted on 19 June, at the United Nations (UN) headquarters in New York, US. It was adopted at the resumed fifth session of the Intergovernmental Conference, and will open for signature on 20 September. The treaty will enter into force after ratification by 60 States.
IMO secretary-general Kitack Lim says:“ I congratulate all parties on the successful adoption of the new legally binding instrument on marine biodiversity in areas beyond national jurisdiction. This landmark achievement will no doubt reinforce efforts to protect biodiversity in line with the aims of the 2030 Agenda for Sustainable Development and the Kunming-Montreal Global Framework for Biodiversity. IMO has participated throughout the negotiations, given the organisation’s mandate and expertise, and will continue to participate, in the implementation of the new instrument.
IMO looks forward to further strengthening our co-operation with member states, the UN family and all other stakeholders.”
The BBNJ treaty addresses, among other things:
» The conservation and sustainable use of marine BBNJ
» Marine genetic resources, including questions on benefit-sharing (MGR)
» Area Based Management Tools (ABMT), including marine protected areas
» Environmental impact assessments (EIA)
» Capacity-building and the transfer of marine technology (CB&TMT).
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (the Hong Kong Convention) is set to enter into force within 24 months, after Bangladesh and Liberia became Contracting States to the Convention.
The Hong Kong Convention is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and to the environment.
International Maritime Organization (IMO) secretary-general Kitack Lim commended Bangladesh and Liberia for the accessions. “I congratulate Bangladesh and Liberia for depositing their instruments of accession, triggering within 24 months the entry into force of the Hong Kong Convention, and the global regime for safe and environmentally sound recycling of ships.
“This is a momentous day for the IMO, for the international shipping industry, for the marine environment, and specially for workers and local communities in ship recycling countries globally.
“Bangladesh has made huge strides in recent years in improving its ship recycling regulation and standards to meet the Hong Kong Convention requirements. I take this opportunity to also thank the government of Norway for its continued support to the IMO-implemented project on Safe and Environmentally Sound Ship Recycling in Bangladesh (SENSREC), which has helped make this accession possible.
“I would also like to express my deepest appreciation to Liberia. As a prominent flag state, its accession to the Hong Kong Convention will provide a major advancement to Liberia’s regulatory framework and would enable the tonnage criteria to be met.”
The Hong Kong Convention was adopted at a diplomatic conference held in Hong Kong in 2009. It is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and to the environment.
It embraces the “cradle to grave” concept, addressing all environmental and safety aspects relating to ship recycling, from the ship design stage through to the end of the ship’s life, including also the responsible management and disposal of associated waste streams in a safe and environmentally sound manner.
Leading global marine energy solutions provider KPI OceanConnect, multinational professional services network Deloitte and payment services provider ZTLment recently announced a new partnership to incorporate blockchain technology into marine energy trading through the AuctionConnect platform to ensure greater traceability in the value chain and improve maritime sustainability.
The organisations say that whatever the agreements reached during the International Maritime Organization’s MEPC 80 discussions, transparency, innovation and the digital technologies that support them will be fundamental to helping the shipping industry manage its carbon footprint and automate payments in the value chain.
As the uptake of carbon credits will increase in both the voluntary and mandatory markets, KPI OceanConnect, Deloitte and ZTLment recognise the need for greater transparency in the value chain. Using blockchain technology to provide an unalterable record of carbon credit transactions, the collaboration aims to restore trust in carbon offsets, and create a reliable and effective picture of emissions reductions. This will help to solve the long-standing challenge of the accuracy and reliability in carbon offsetting claims.
For KPI OceanConnect, this groundbreaking initiative reinforces its position as an innovative, transparent and sustainability-driven partner for the shipping industry. The organisation is further enhancing compliance,
security and transparency for clients using its marine energy trading platform, AuctionConnect, while also supporting the shipping industry in its alignment with sustainability goals. If the hackathon is successful, the solution is expected to be taken to production in the fall of 2023.
Per Funch-Nielsen, director of AuctionConnect, says: “The shipping industry has a crucial role to play in the global transition to a low-carbon economy, which also means that the industry is seeing a lot of demands from customers, regulators, investors and credit institutions to reduce its climate footprint.
“The development of green fuels is a viable pathway towards decarbonisation for a sector at the heart of the energy transition. However, many alternative fuels are still in the early stages of development for widespread use in shipping globally. Along with biofuels, an immediate solution to reduce emissions is carbon offsetting.
“The inclusion of blockchain technology on our world leading digital platform for marine energy trading, allows us to link the flow of purchasing marine fuels and carbon offsets, to provide immutable proof of the transaction, the ownership of the carbon credit and the payment.”
Mads Stolberg-Larsen, co-founder and CEO at ZTLment, says: “Blockchain technology allows ZTLment to take payments and documentation of carbon credits and connect them on a single infrastructure with full traceability for all parties. My prediction is that carbon
credits will be the first value chain in the world to be completely tokenised through blockchain technology, creating a whole new era of reliability and transparency.
“Using smart contracts technology, we can create a direct link between the flow of funds, the fuels and the carbon credits that have been purchased.
“KPI OceanConnect’s clients will complete a normal bank transfer, where the money is uploaded to the blockchain and automatically distributed to the various suppliers. If the fuel buyer doesn’t have a blockchain address, they simply download a certified document from the AuctionConnect platform, which references all the underlying blockchain transactions.”
Rasmus Winther Mølbjerg, director at Deloitte, says: “We see huge potential for blockchain technology to accelerate the green transition. Strategic partnerships like ours with KPI OceanConnect and ZTLment are the way forward. Blockchain technology has enormous potential to create trust and transparency in the green economy. That’s why companies need to come together to implement robust procedures for issuing, tracking and retiring carbon credits to ensure accountability throughout the entire trading process.
“Applying systemic trust and transparency in the digital era has never been more important.”
Electric vehicle (EV) smart charging provider ev.energy is joining forces with global solar innovation leader Maxeon Solar Technologies to drive the roll-out of EV smart and solar charging solutions across Europe, the Middle East and Africa.
Through this collaboration, ev.energy will become one of Maxeon Solar Technologies’ global SunPower One ecosystem partners for EV Solar and Smart Charging. This integration will empower customers with a combined smart charging and solar charging solution that will help drive a more sustainable and cost-effective way for EV drivers to recharge.
Maxeon Solar Technologies has partnered with ev.energy to provide a best-in-class smart and solar EV charging experience. Maxeon’s customers will have access to ev.energy’s world-leading EV smart charging solar functionality straight out of the box inside the SunPower One ecosystem.
The two companies have taken an open collaboration approach to software collaboration, allowing SunPower One users to easily log in to the ev.energy app with their Maxeon account using a Single-Sign-On login with their SunPower One credentials.
With ev.energy’s SOLAR solution, EV drivers can use their excess Solar power to charge their car (Solar Only mode), or use the combination of excess solar plus grid energy to power their car, ensuring the cheapest, greenest charge every time (Solar Smart mode).
“We are thrilled to partner with Maxeon Solar Technologies to bring our advanced EV smart charging solutions to customers worldwide”, says Aaron Sweet, head of home charging at ev.energy. “This partnership marks a game-changer in driving EVs in a net-zero way by enabling the charging of EVs with renewable energy. It represents a significant step forward in our collective efforts to create a sustainable future for transportation.”
Technology company ZeroNorth and Sedna, a data-driven communication platform for maritime, have announced a new partnership, collaborating together with a shared vision to turn email data into actions across the global trade value chain.
The agreement will see both companies work to bring about closer integration between their technologies and solutions, initially focused on unlocking information buried inside the many emails received by shipping professionals every day.
Of the hundreds of emails that a shipping professional receives every day, only a fraction may be directly relevant to them. This can result in missed opportunities and potentially impact day-to-day business performance. Sedna unlocks the hidden value of information buried inside these many emails and adds context to enable smarter working. Meanwhile, ZeroNorth’s platform turns data into actionable insights, interpreting not only vessel data, but also information about the reality faced at sea, such as weather and market conditions, to provide voyage, vessel, fuel and bunker optimisations.
The new partnership will benefit organisations across the global trade value chain, from shipowners and operators through to charterers and
fuel suppliers. As the partnership evolves, ZeroNorth and Sedna will explore how they can make user data securely interoperable between the two platforms.
This means that customers of both companies will be able to decisively act not just based on the summary of emails that they receive in the Sedna platform, but also use ZeroNorth’s complex AI-driven algorithms and machine learning capabilities to turn this data into an easily digestible and actionable summary.
Soren Meyer, CEO at ZeroNorth, says: “We’re committed to driving real impact across the global trade value chain and partnerships like this one with Sedna closely align with our vision of green global trade.
“Together, we will work on solutions and integrations that enable the maritime industry to rationalise, understand and act on the immense wealth of data it already handles on a daily basis, all to enable more sustainable and profitable outcomes for our customers.”
Bill Dobie, founder and CEO at Sedna, adds: “For effective chartering and voyage operation, the maritime industry has to action an incredible amount of fast-moving data on a daily basis. Digital tools, like ZeroNorth’s platform, provide the necessary means to immediately get key information – such as vessel characteristics, position and fuel consumption predictions – to those on-shore to enhance commercial success and decision-making through faster fixing, proactive operations and reduced carbon costs.
“Over the following months, we’ll together explore how we can best harness AI and, with ZeroNorth’s admirable commitment to create a positive environmental impact, address how we can rise to the challenge of building a greener, digital future for shipping.”
The new partnership also advances the collaborative agenda of both Sedna, which already has a number of integrations with digital leaders, and ZeroNorth, which is partnering widely across the supply chain to enable genuine impact.
Shell, in collaboration with Deloitte, has released its report All Hands on Deck 2.0, focusing on six tangible actions to accelerate the decarbonisation of the shipping industry.
The report features research and analysis based on insights drawn from leaders across all segments of the shipping sector to provide a highlevel overview of progress made in decarbonising the marine sector since 2020 and assess the prevailing views, sentiments and concerns in the industry.
It emphasises a selection of specific actions the sector can act on without delay, including:
» Scaling up demand for low-carbon fuels and low-emission vessels
» Taking a segment-specific approach for tailored solutions
» Leveraging local/regional regulation for momentum and anticipating global regulations
» Driving clarity on fuel pathways and investment in demonstration projects
» Adopting an integrated view on asset improvement, including efficiency measures and retrofits
» Activating the first green corridors as tangible proof points
To read the report in full, visit: tinyurl.com/CSI-ShellReport
European shipping emissions grew 3% last year as the industry edges closer to pre-pandemic levels, new Transport and Environment (T&E) analysis shows.
Cruise ship emissions were well up on the year before, while a high number of vessels transporting liquefied natural gas (LNG) contributed to driving up emissions. The industry is moving closer to the point of no return, says T&E.
Jacob Armstrong, shipping manager at T&E, says: “Carbon emissions are at a three-year high as shipping companies continue to go all guns blazing. Europe’s shipping giants are up there with coal plants and airlines as the continent’s biggest polluters. But while everyone has heard of Ryanair, the average person doesn’t even know who MSC is.
“Without stricter regulations, shipping companies will continue to spurn investments in efficiency and green fuels. The industry is quickly moving to a point of no return.”
Last year, ships visiting European ports emitted nearly 130m tonnes of CO2. Cargo ships were responsible for the bulk of emissions. Cruise ship emissions in 2022 were almost double what they were last year after a year of disruptions to international travel.
The most polluting ship last year was the MSC Grandiosa, which alone was responsible for more than 130,000 tonnes of CO2 – the same as a small town.
The major cargo shipping trend in 2022 was the increased volume of LNG shipments, which grew 58% last year. As Europe ramped up sanctions on Russian oil, Europe’s import push for LNG drove a massive increase in seaborne emissions.
The EU’s landmark green shipping law will still leave the bloc dependent on fossil fuels beyond 2050, further Transport & Environment (T&E) analysis shows.
The review of the EU’s FuelEU Maritime also shows that EU shipping will fall behind where it needs to be in every decade up to and beyond 2050,
meaning the sector will almost certainly overshoot the target of keeping global heating to 1.5°.
In April this year, the EU passed the world’s most ambitious green shipping law to date, which among other things set a mandatory target for the sector of 2% green e-fuels by 2034. But T&E’s analysis shows that this is not ambitious enough and by 2040 fossil fuels will continue to power three-quarters of European shipping’s energy needs.
Under the current law, 6% of shipping will run on green e-fuel by 2035 and this will rise to 24% by 2040. To ensure the sector decarbonises on time, the share of green e-fuels will need to be at least 18% and 85% in 2035 and 2040 respectively, alongside strong energy efficiency measures.
Alex Springer, shipping analyst at T&E, says: “Last year, the EU took a major stride in tackling carbon emissions from ships by introducing the world’s first green fuels mandate for shipping. But in the midst of a climate crisis, what it requires of shipping companies is not enough.
“The EU’s failure to get shipping to zero by 2050 puts the bloc’s entire Green Deal at risk. Europe’s policymakers must go bolder and revise the targets immediately following next year’s European elections.”
Since launching its renewables focused business in 2012, Orkney-based marine operator Green Marine has been experiencing significant demand for its services and wanted to use specialist finance solutions to boost its growth potential.
“We’ve got a long history of working in the marine sector. Before specialising in offshore wind and tidal energy we ran a fleet of fishing vessels around the world,” explains Jason Schofield, managing director at Green Marine. “But with the changing tides we saw a chance to support greener business and have dedicated our efforts to sharing skills and expertise in offshore renewables.”
Not only has global interest in green energy sources increased massively over the last decade – with initiatives such as ScotWind stimulating wind farm development in the region – many businesses are keen to reduce their carbon footprint across the supply chain by working with local companies.
These drivers have contributed to a rapid growth opportunity for Green Marine, one that the business expects to continue in the coming years.
In order to seize the opening and build on its excellent momentum, the company wanted to find the ideal financing partner to match its growth ambitions. So began its meticulous
search for the most suitable financier.
“We’d been building a portfolio of options and talking to our current financiers about various options when the Marine Finance team at Siemens Financial Services (SFS) got in touch with us directly.
“We quickly developed a relationship with the team and it was able to offer us a finance package that far outpaced the other funders we were considering.”
DNV has published a study cosponsored by the Singapore Maritime Foundation (SMF), examining the key drivers transforming the maritime industry and their impact on ship management and seafarers.
The research draws on a comprehensive methodology combining a literature review, expert consultations, and a survey of more than 500 seafarers responsible for operating dry bulk, tanker, and container vessels globally.
Of the many forces shaping the future of maritime, decarbonisation and digitalisation were identified to have the most profound impact on the future of seafarers and ship management leading up to 2030.
Eighty-one percent of seafarers surveyed indicated that they require either partial or complete training to
effectively work with the advanced technology that will be present onboard future ships.
Similarly, more than 75% of the respondents expressed a requirement for partial or complete training on new fuel types such as liquefied natural gas (LNG), batteries or synthetic fuels. This training deficit rose to 87% of survey respondents for emerging fuels, such as ammonia, hydrogen and methanol.
As shipowners and operators are increasingly deploying modern technologies onboard and exploring the use of alternative fuels in a bid to stay compliant, the handling of incoming fuels and technologies will require the crew to have additional skill sets and thus the need for comprehensive training.
At the same time, growing automation of components and systems onboard is expected to bring about a rise in autonomous and smart ships, thus the need to consider remote shore monitoring in the future.
Cristina Saenz de Santa Maria, regional manager South East Asia, Pacific and India at DNV Maritime, says: “With decarbonisation and digitalisation rapidly transforming the maritime landscape, it is essential that shipowners and managers understand the new challenges and opportunities that these forces present.
“Proper training and industry collaboration will be imperative to ensure seafarers are equipped with the competence and skills to operate ships using new fuels and technologies in a safe and efficient manner. Upskilling seafarers will not only enable them to execute additional monitoring and maintenance tasks onboard but can also be leveraged upon to improve attraction and retention in the industry.”
Chairman of SMF, Hor Weng Yew, says: “The work that we do this decade is important and complements the efforts of the shipping community to meet the net-zero target in 2050. It is essential that we begin by understanding where the competency gaps are, areas of training most needed, and then work as an industry
to equip sea-going professionals with the transition and future skills needed to safely and effectively operate the new-fuelled types of ships that are coming into service.”
Following the research results, the study recommends seafarer training to be prioritised for fuels that are most likely to be predominant in the current decade, capitalising on the ease of accessibility and range of modern training methods to improve skill deficits.
It was also found that career advancement and development opportunities for seafarers will improve with the trend towards decarbonisation and digitalisation, complemented by the expected prevalence of complementary shore-based roles in the future.
and Council will agree on the final text, under the guidance of the Spanish presidency of the Council of the EU. Seas At Risk and Oceana urge all those involved to act in line with both scientific advice and the urgency the crisis demands by approving a stronger text by the end of the year.
The Samson Eco Hopper type EH60 has been tested successfully and put into operation in China. Thanks to the environmentally friendly design and the installed filter systems, it makes an important contribution to the reduction of dust emissions during ship loading and unloading processes.
The internal screen of the chute is constructed so that the dust filter elements are isolated from the main flow of material, and the filter operation is optimised.
The design follows sustainability principles. It reduces the air flow to a minimum so that the filter surface and electricity consumption can also be lowered. Close to the hood there is a system for the reduction of the turbulence, which is often caused by side winds. The hopper is reinforced which in turn gives optimised stability to the entire unit.
The European Union’s efforts to move its green agenda forward received a boost in July as the European Parliament adopted its position on the EU Nature Restoration Law (NRL).
Tatiana Nuño, senior marine policy officer at Seas At Risk, says: “The European Parliament has backed a Nature Restoration Law, giving us hope for the future of Europe’s seas. There is a long way to go until we have the necessary, ambitious tools to face the climate and biodiversity crises, however.”
The law will now face another round of “trilogue” negotiations where the European Parliament, Commission
Eco Hoppers from Samson Materials Handling are suitable for operation in ports and terminals to handle bulk materials with almost any characteristics and flow properties. Approximately 13m of tonnes of goods pass through the inland river port each year at Dagang Port of Zhen Jiang, where the Yangtze and the Grand Canal meet, creating a major shipping hub in China.
Leading marine safety equipment manufacturer Daniamant has launched its latest lifejacket light innovation, designed specifically for Arctic waters –Dan W3 POLAR.
The newly developed lifejacket light sets a new industry benchmark, providing reliable efficiency and optimal performance, while ensuring enhanced safety for passengers and crew members undertaking Arctic voyages.
The live-saving lifejacket light features enhanced cold weather performance, specifically engineered to allow storage in freezing temperatures as low as -52°C, and ensuring illumination and high visibility in the most extreme of Arctic conditions when in operation.
Developed in line with Safety of Life at Sea (SOLAS) standards, Dan W3 POLAR not only meets but exceeds all of the requirements outlined by the International Maritime Organization’s SOLAS regulations, providing full compliance and adherence to international safety standards.
The light is designed for exceptional visibility, enhancing the chances of detection in emergency situations. Constructed using robust materials and advanced sealing techniques, the lifejacket light is highly durable and water-resistant.
To further guarantee successful performance in harsh maritime environments, the Dan W3 POLAR features extended battery life, for prolonged illumination over extended periods. The Dan W3 Polar is easy to distinguish from other lifejacket lights with its polar bear logo and “ice” colour.
Arctic expeditions present unique challenges and require specialised equipment that can withstand extreme weather conditions. Recognising the importance of providing reliable safety solutions for maritime operations in these challenging environments, Daniamant has invested significant resources into research and development to create a lifejacket light that exceeds industry standards.
Kevin Rough, CEO at Daniamant, says: “Daniamant is dedicated to developing cutting-edge solutions that address the unique safety challenges faced by mariners operating in Arctic waters. With the introduction of our new SOLASapproved lifejacket light, Dan W3 POLAR, we aim to provide unmatched safety and peace of mind to crew members and passengers navigating through the extreme cold and demanding conditions.”
Decarbonisation and digitalisation is rapidly transforming the maritime landscape
PureteQ A/S and China Shipbuilding Power Engineering Institute Co., Ltd. (CSPI) have joined forces to produce cost competitive, high-quality and state-of-the-art maritime exhaust gas cleaning systems (EGCSs) in China.
The collaboration between the two leading EGCS specialists PureteQ and CSPI raises the bar for the production of scrubbers on the Chinese market.
CSPI is the contracting partner and delivers the complete scrubber system to the end client. It manufactures the scrubber tower in China and sources all components according to PureteQ’s specifications, and it is responsible for installation and commissioning in China. PureteQ is responsible for the basic design,
engineering, class documents and sea trials, as well as supervision, and provides the main scrubber panel and control software, as well as the water monitoring system.
CSPI is an experienced scrubber maker with a strong equipment supplier base in China, ensuring efficient yard installation and faster commissioning. PureteQ designs simple and robust built-to-fit scrubber systems of all types based on in-house EGCS process software and EGCS specialised components to ensure remote access and troubleshooting, compliance monitoring and power optimisation.
With this setup, there is a highquality product with first-rate EGCS design and performance, and low operational expenditure for a reasonable price.
A SIMPLE SOLUTION TO A GLOBAL CHALLENGE
In addition, PureteQ’s offices in Europe and Asia provide prompt worldwide support and after-sales service. Our expert team of marine engineers assist shipowners and operators in safeguarding continuous operation, reliability, and MARPOL compliance of all brands of scrubbers, either on-site or via the safe PureteQ remote system. We offer tailor-made service agreements designed to meet shipowners’ specific needs based on the ship’s operational pattern and crew proficiency level. Our service agreements include (but are not limited to):
» Operational advice and environmental performance reporting including access to our web-based Scrubber Performance Optimization Tool (Pure-SPOT)
» Certified calibration and sensor replacement programme
» Spare part management and access to our safety stock (shipped within 24 hours)
» Training of crew on-site or remotely via our Internet for Remote Assistance Services (IRAS) installation for ship-wide WiFi access and real-time support
» 24/7/365 hotline service
To help combat climate change, we are committed to continuously optimising our systems and investing in the research and development of new technologies within the fields of carbon capture and power-to-x. PureteQ Maritime Scrubbers therefore now come as fully onboard carbon-capture-ready.
PureteQ A/S is an international engineering company that specialises in the service, design, production and installation of high-tech maritime EGCSs – scrubber systems for ships that further the green transition by reducing emissions of sulphur and nitrogen oxides in exhaust gas from heavy fuel oil.
CSPI
China Shipbuilding Power Engineering Institute Co., Ltd. (CSPI) is the research and development unit for marine power systems under the China State Shipbuilding Corporation (CSSC).
For more information, contact: Anders Skibdal, CEO PureteQ Group
Tel: + 45 4017 1400
Email: anders@pureteq.com pureteq.com
Exhaust gas abatement systems are valuable solutions that bridge the gap between environmental regulations now and in the future according to Wärtsilä.
Wärtsilä exhaust treatment’s team manager, integration engineering Su Len Quach recently wrote about the scrubber retrofit market and its position in shipping’s journey to a decarbonised future.
“As the shipping industry rallies to remain compliant and profitable while the pressure to decarbonise ramps up, it is tempting to only think about new vessels. But given the finances, timeframes and technologies involved, the existing fleet will remain part of the conversation and cannot be left behind,” he said in a recent insight for the company.
“The challenge of how to invest in existing vessels in an uncertain future should not be understated. Depending on their operating pattern, layout and technical capabilities, some technologies will not be relevant. Not all vessels can be easily retrofitted for future fuels, for example, and low carbon
options may only be speculatively available in the medium and long term on the routes they operate.
“In this challenging and uncertain atmosphere, the industry should turn to solutions that it already understands – and that can create a platform for further development.
“As a mature technology with a strong return on investment, scrubbers – with the possibility for a carbon capture and storage (CCS) module to be added –enable owners to futureproof their existing assets against the changes in the market and the evolutions we will all face ahead.
“Looking at the short-term, owners who invested in scrubbers for International Maritime Organization 2020 compliance are already enjoying a competitive advantage. Reports throughout 2022 showed that scrubber-fitted ships earned twice as much as those without, with scrubber CAPEX paid back within a few years.
Exhaust gas cleaning systems continue to provide an alternative solution to the issues surrounding emissions, providing a suitable bridge between environmental regulations
“The business case for retrofitting a scrubber today is positive. With the wide and relatively stable spread between high Su and low sulphur fuels, they continue to offer favourable economics and payback time has been less than two years for several vessel types.
“In addition to their fast return on investment, scrubbers can in foreseeable future tackle CO2 with onboard capture and storage, making them a future-proofed investment for achieving marine decarbonisation goals.
“All this should give the industry optimism that existing solutions can help support the latest regulations, including Carbon Intensity Indicator and Energy Efficiency Existing Ship Index, and prepare for carbon pricing further down the road towards 2030 and 2050.
“For owners and operators, the key challenge in the more immediate term is finding an experienced partner that can deliver the right solution in good time, at any location, with reliable lifecycle services support,” Quach concludes.
Scrubbers can in foreseeable future tackle CO2 with onboard capture and storage, making them a future-proofed investment for achieving marine decarbonisation goalsScrubbers are a future-proof investment Su Len Quach
Continuous performance improvement in maritime operations is an ideal pathway towards compliance with national and global decarbonisation targets, writes Aleksander
Askeland, chief sales officer, Yara Marine Technologies.
In today’s uncertain operating environment, which is beset with unexpected price rises as well as geo-political impact, shipowners and operators may defer choosing one of the many fuels or technologies currently available for the fear that a better solution may make itself available in the near future. However, irrespective of the solutions entering the market in the future, there is no doubt that the operational goal will be to use as little of that fuel as possible while safely and economically delivering passengers and cargoes
on time. This means that many of the solutions available today will remain relevant even in the future.
At Yara Marine Technologies, we feel that a future-proofing ecosystem is built on four elements that will remain practical and worthwhile as the industry evolves: efficiency, variety, collaboration and compliance.
At the International Maritime Organization’s MEPC 80, the resolution to target net-zero emissions by 2050 granted the maritime industry clarity on the broad strokes of the decarbonisation timeline, but had little to say about specific fuels and technologies – thereby leaving uncertainty present in the market. However, we all know that – despite infrastructure development, power density, scope three emissions levels, or the specifics of market-based measures – within the parameters of a voyage, the ship that burns less fuel saves more money and emits less carbon.
Vessel efficiency is a core element of continuous improvement, irrespective of the fuel in a ship’s tanks. Efficient solutions provide value for the lifetime of the vessel and serve as a key factor in saving money and cutting emissions, and a differentiator in the marketplace. We believe that efficient vessels lower operating costs and create an ideal baseline from which to test the additional benefits that individual fuels or technologies can bring to a fleet.
Our FuelOpt solution is designed to make the most of every drop of fuel a ship uses, with emissions savings of up to 10% verified by NAPA independent testing. This real-time propulsion optimisation solution is fuel-agnostic and operates by finding the optimal balance between vessel speed, engine
power and fuel consumption limitation. More than 300 vessels are already equipped with this solution and will continue to benefit from fuel savings and improved vessel performance.
The diversity of the maritime industry is staggering. Vessels vary in size, routes vary in length and proximity to land, some ships sail a predictable route, others follow the markets across the world, some fleets number in the hundreds while others operate alone; chartering and ship management arrangements can vary significantly within a fleet; owners may have committed vast sums to their decarbonisation journey or be considering their first investments.
This variety gives rise to disparate and sometimes conflicting requirements for technologies when considering individual vessel and fleet needs at either end of the vessel operation spectrum. With so many considerations ahead of investment, it is important that technology providers have a range of solutions to meet the customer needs at every point in their journey. Committing to engine optimisation, fleet performance management and route optimisation all at once may be a daunting prospect for a shipowner, or they may have an existing solution in place in one of those categories and only be looking for supplementary solutions.
Our FuelOpt, FleetAnalytics and Route Pilot AI products are available as standalone solutions for precisely this reason. Offering separate solutions enables shipowners to build their toolkit over time, adopting a technology, integrating it into their operations, and experiencing and confirming the savings and efficiency benefits for their vessel before
taking the next step. As that toolkit is expanded, owners and operators will feel the individual benefits of each component and the compounding benefits of the suite as a whole – with Route Pilot AI identifying the optimal route based on weather patterns and time of arrival, FuelOpt maximising fuel efficiency in real time for the conditions at sea, and Fleet Analytics delivering operational insights to staff at shore and sea to unlock long-term performance analysis and benchmarking.
We also harness the power of sea breezes with our BARTech WindWings by Yara Marine, which have recently been installed onboard the Cargillchartered ship Pyxis Ocean for its maiden journey, from China to Brazil. Additionally, we offer a user-friendly Shore Power solution that drastically lowers fuel consumption and eliminates emissions while at berth.
We feel that the step-by-step approach we have adopted for improving a fleet’s efficiency, and demonstrating concrete benefits along the way, will accelerate the adoption of decarbonisation technology and turn the tide against the wait-and-see approach to emissions reduction which still exists within our industry.
Applying genuinely beneficial technologies has a further advantage of showing shipowners and operators the value of taking their commitment to emissions reductions beyond the regulatory minimum with positive impacts on company reputation, vessel employability and the bottom line.
The need for collaboration within and beyond our industry is front and centre in the conversations being had today, and we are pleased that there are already multiple examples of shared stakeholder insights, plans, requirements and capabilities that will align and maximise the maritime industry’s decarbonisation efforts. This approach of working together and sharing information should also underpin individual technologies and the range of solutions employed across the global fleet. A vessel should be able to have multiple solutions
onboard, which will deliver a combined benefit and enable a vessel operator to adopt an iterative approach for continuous improvement.
Removing barriers to adoption is a critical step in encouraging technology adoption, and for Yara Marine Technologies this means ensuring that our solutions are compatible with what is already in place onboard a vessel. Building systems with interoperability at their core helps to ensure that shipowners are not punished in the future for investments made at present. This approach also makes investment decisions more palatable, as it removes the fear that by committing to one technology and walking through one door, other doors are being closed around them.
Designing for the existing fleet is a good place for technology providers to start. A vessel’s size, age, machinery, engines, propulsion and fuel source should not be barriers to adoption.
Using FuelOpt as an example, the system offers speed and consumption optimisation for all vessels, whether with fixed pitch or controllable pitch propellers. Instead of developing solely for ships with controllable pitch propellers, or for those with fixed pitch propellers – or even creating a product that delivers to the lowest common denominator across both – FuelOpt maximises the efficiency gains for fixed pitch propellers and has the further capacity to separately regulate propeller pitch and engine RPM for further efficiency gains where available. This flexibility means that the benefits are available for everyone, and each ship runs as efficiently as its machinery allows.
By applying this same ethos of maximising efficiency gains from available technologies without introducing a growing list of vessel prerequisites across the industry, we can ensure that solutions are easily integrated on any vessel within any fleet. This process needs to be forward looking, securely allowing efficiency and emissions reductions technologies from multiple vendors to share data onboard the same vessel, giving shipowners the widest possible range of options when it comes to upgrading their ships and their operations.
Market participants have committed to decarbonisation to varying degrees, but evolving regulations will necessitate adopting new ways of working, along with reporting requirements to keep track of our progress. Vessel optimisation products should help shipowners to achieve compliance with current regulations and make reporting straightforward, such as the data logging necessary to show operational improvement under the Carbon Intensity Indicator (CII) regulations. We believe that this data acts as proof of what has happened, and also highlights improvements that can be made to vessel performance in the future as CII rating requirements tighten over time.
All of our products are designed to boost transparency between the teams at sea and on shore, making it easy to demonstrate compliance and identify areas where new technologies or emerging fuels can deliver maximum impact. Furthermore, this transparency means that our users will be prepared to monitor, report and present any data necessary to ensure compliance with future regulations and mechanisms implemented to steer shipping’s decarbonisation journey.
Operators using the four pillars to future proof their fleet should find themselves able to make investments in technologies and fuels that accelerate their net-zero journey without fear of wasting resources. Although there are valid concerns about the future operating landscape, perfection need not be the enemy of progress when it comes to decarbonising shipping.
We must all work together – whether manufacturers, operators, charterers, regulators or finance providers – to nourish an environment in which change is easy and risks are minimised. While we do the necessary calculations to ensure our bottom line is solid, we must not take our eye off the bigger picture: the future of our planet rests on the actions that we take today.
For more information, visit: yaramarine.com
You can check out more details about this CO2 and CII suite at: https://public.axsmarine.com/co2emissions-and-cii
We know that since the start of the year everyone in the industry has been scrambling to comply with IMO’s latest CO2 emission requirements. These cover both technical measures like vessel design and equipment, as well as operational measures like energy efficiency. With new parameters to follow such as EEXI, CII, AER and EEOI, this task has become increasingly challenging.
This is where AXSMarine’s focus has been pointed towards for a while now. Continuing company’s mission of helping the industry stay compliant with IMO2023 GHG regulations, AXSMarine specifically designed tools are expanding.
The latest addition to company’s tools pool is an interactive report in AXSInsights. It estimates CO2 emissions, CII, CII Rating, and EEOI per vessel for the entire Dry Bulk fleet. The data behind this emissions report in AXSInsights helps users gauge the impact the fleet has on the environment.
The calculation the CO2 emissions in this latest tool starts with the generation of speed and consumption curves for laden and ballast legs based on AXSMarine’s own database. It takes into account the standard emission factors of HSFO, VLSFO, and LSMGO fuels and measure total voyage emissions based on AIS-detected operations carried out by the particular vessel in a particular voyage.
CII and EEOI are also estimated through a transparent and consistent methodology using AXSMarine’s proprietary datasets and Trade Flows data for voyage duration, speed and cargo intake. An individual graph is then generated per vessel, visualizing the required CII, its upper, lower, inferior and superior boundaries, compared against the vessels’ actual CII as calculated by company’s new tool.
The emissions dashboard provides full voyage history of each vessel, as well as its CO2 emissions evolution per year. An overview of the entire Dry Bulk fleet, broken down by fleet segments, is available for filtering in order to gain a more macro-focused analysis. AXSMarine’s users will be able to take quick and informed decisions in order to stay within IMO guidelines when either selecting a vessel for a voyage or analyzing the impact of any fleet segment on the market.
The emissions dashboard in AXSInsights will provide one with extensive info on AIS-derived completed laden and ballast legs. But AXSMarine has also developed several other tools for their users calculating CO2 emissions and cost, EEIO, AER, CII and alignment deltas for any upcoming voyages.
The Estimator module in AXSDry has already been enhanced to provide all relevant carbon emissions data for any single voyage that one has complete control over. Each stage of the voyage can be fully customized through specific vessels and desired sequences.
Not only does it allow users to be aware of emissions and costs in advance, but also provides them with the ability to easily see how route and other voyage parameter changes affect the end results.
The CO2 suite by AXSMarine includes a tool optimized for quick operations when working with multiple vessels at once. The Smart Calculator in both AXSDry and AXSTanker takes all the essential information for a voyage and returns its results simultaneously for each vessel in a simple grid.
It can return results for an unlimited number of vessels simultaneously, provided they are suitable for the parameters set by the user.
AXSMarine’s CO2-oriented tools are unique, requiring the least amount of manual input from the users, compared to other options available on the market. One’s workflow remains virtually the same, with the benefit of the additional output.
AXSMarine mission continues to entail providing the shipping industry the tools it needs to stay compliant with environmental regulations.
Founded in 2000, AXSMarine is a global provider of online software solutions to the international shipping industry and is trusted by more than a thousand companies worldwide. Its software solutions deliver remarkable efficiency to commercial chartering processes in Dry, Tanker, S&P, Offshore and Containership chartering. These products provide a suite of modules, which allow shipping executives to fully analyse their commercial and operational activities. All web-based, services are accessible from any computer, anywhere; without additional downloads or installation. AXSMarine online tools are secure, fast and easy to use. With AXSMarine faster, manage more efficiently and plan better. The company is headquartered in Paris, France and has presence in the UK, Singapore, Germany, Greece, Bulgaria, and the USA and UAE.
You can check out more details about this CO2 and CII suite at: https://public.axsmarine.com/co2emissions-and-cii
A recent industry survey on carbon emissions within the logistics sector conducted by the British International Freight Association (BIFA) has revealed that it is not just legislation that is driving change, but client pressure and internal initiatives are also increasingly significant factors.
The survey was conducted in association with Pledge, a decarbonisation software platform for transport and logistics, with which BIFA is in partnership, to evaluate how much the growing awareness of the importance of this issue, tempered by some scepticism, is impacting on the business activities of freight forwarders and logistics service providers.
There were four straightforward questions, which yielded some interesting results.
The outcome can be summarised as indicating that there is growing awareness of measuring carbon emissions from the shipment of freight among BIFA members. The results showed that for 69.05% of the respondents, calculating emissions was
Decarbonisation is not just being driven by new legislative initiatives, but also by pressure from outside forces
playing some sort of role within their day-today activities, while for 15.48% it was deeply rooted in their business activities.
The answer to “what factors were driving this change?” produced an unexpected response – the perceived wisdom has always been that regulation would drive change and for 15.48% this was still the case.
However, for 28.57% of members, client pressure is the main contributor, while, even more surprising, internal initiatives accounted for 30.95% of replies to this question.
The findings of the survey support BIFA’s belief that the use of IT systems to facilitate the integration of transport management with carbon calculation systems is key to the successful recording and reporting of carbon emissions. This is the first step to considering how to reduce these emissions, potentially via modal shift and, where that is not practical, via measures such as carbon offsetting.
The final question concerned funding of programmes designed to calculate
carbon emissions. While 22.62% of respondents had an annual budget of less than a £1,000 to spend on carbon emissions calculation, a much healthier 30.95% had between £1,000 and £9,000 to spend. The financial budgets of a further 14.29% of members exceeded £20,000. The balance preferred not to say.
BIFA director general Steve Parker comments: “The conclusion of the survey is that there has been growing awareness of environmental issues among the BIFA membership and, to some extent, a growing awareness of the need to measure carbon emissions and provide that information to clients.
“It will be particularly challenging for SMEs to determine how they will use this data and what they can actually do to reduce their carbon emissions – the general consensus is that significant changes will be required. Although what these will be are not clear at the moment.”
Design and engineering consultancy Houlder and Shell have agreed to work together to identify, evaluate, and further develop solutions to accelerate the decarbonisation of the maritime industry.
The agreement will focus on both retrofit and newbuild vessel opportunities of benefit to the wider maritime community. The collaboration
will span market research, technical analysis of clean solutions from a design and engineering perspective, safety and risk assessment studies, and greenhouse gas emissions abatement quantification and verification.
Rupert Hare, chief executive officer at Houlder, comments: “The maritime industry has to choose technology pathways, supported by regulation, which offer credible and low-cost routes to a net-zero emissions future by 2050. We must collectively do more to accelerate change – and this is one of the cornerstones of our forwardthinking collaboration with Shell.”
Jonathan Strachan, chief technical officer at Houlder, adds: “There are myriad maritime decarbonisation solutions available. The challenge is cutting through the noise to find the right solutions for a ship type, specific ship, and its unique operating profile. Our collaboration with Shell will support the company in making the right decarbonisation decisions, underpinned by technical design and engineering expertise.”
Through leading and participating in like-minded collaborations and coalitions, Shell and Houlder’s overarching aim is to see commercially operating ships with lower emissions on the water in the 2030s.
They believe this can be achieved through a combination of existing technologies and fuels, while more
radical change will be required to achieve alignment with the new International Maritime Organization (IMO) target of net-zero emissions close to 2050.
Safety is another core component of Houlder and Shell’s agreement. With maritime decarbonisation requiring new technologies and operating procedures, safety remains a central focus for the industry. Changes could introduce risks that may not be adequately managed or eliminated by today’s standards, skills and procedures.
News of this collaboration agreement comes after Houlder announced its work for Shell on the concept design of liquid hydrogen (LH2) carriers, and studies on hydrogen as a cargo or fuel.
The news also comes after the IMO’s MEPC 80 meeting and revised greenhouse gas strategy, which requires a well-defined industry view on green solutions to achieve.
The International Maritime Organization’s (IMO) recent deliberations at the MEPC80 highlighted both the opportunities and challenges confronting the shipping industry as it charts a course towards decarbonisation.
According to PortXchange, however while the commitments made are a positive step, they fall short of the urgent action needed to effectively mitigate climate change. Many industry stakeholders are calling for stronger, faster action to exceed the IMO’s baseline commitments, with ports and technological innovation emerging as key drivers in achieving this.
“The IMO’s revised greenhouse gas strategy, agreed upon at MEPC80, has set the goal for net-zero emissions by around 2050, with intermediate targets for 2030 and 2040. However, some stakeholders question the organisation’s pace and the efficacy of its proposed measures. Countries such as China, Brazil and Argentina have resisted more ambitious actions, such as a carbon levy, contributing to a perceived lag
responsiveness to the urgency of the climate crisis.
“Consequently, industry players are adopting more aggressive emission reduction goals independently. In this climate, ports are being recognised as crucial change agents, providing the necessary bridge between policy and practice. Ports such as Rotterdam exemplify this proactive stance, demonstrating how collaboration, data-sharing, and a commitment to efficiency and competitiveness can catalyse progress towards decarbonisation.”
To this end, PortXchange has emerged as a key partner for ports seeking to accelerate their emission reduction strategies. Its innovative software solution, EmissionInsider, has been effectively utilised in the Port of Rotterdam, Europe’s largest seaport. This tool simplifies and automates transport-related emission data collection and establishes a customized baseline emissions inventory for each port.
Through EmissionInsider, Rotterdam has successfully established a comprehensive emissions profile and made significant strides towards achieving its decarbonisation targets. This practical demonstration of technology supporting emission reduction offers a compelling template for other ports worldwide, regardless of IMO decisions.
PortXchange EmissionInsider provides port authorities with data to make strategic decisions on targeted decarbonisation strategies. Such decisions can include adopting mechanisms and incentives that encourage and promote sustainable shipping practices, such as speed optimization, which can significantly reduce emissions.
The shipping industry’s path towards decarbonisation is increasingly reliant on digitalisation. As demonstrated by PortXchange, collaborative, technology-driven solutions can help the industry surpass the IMO’s emission reduction goals. The rapid uptake and implementation of such solutions will be crucial in driving the industry’s transition towards a sustainable future.
While the post-MEPC80 landscape brings its share of challenges, it also opens doors for greater collaboration and innovation, but only if they recognize the part that ports must play in meeting their targets. By harnessing the power of technology and committing to robust decarbonisation strategies, the shipping industry can effectively navigate these uncharted waters.
At a ceremony at the International Maritime Organization’s (IMO’s) headquarters in London in July, Suhail Al Mazrouei, United Arab Emirates (UAE) minister of energy and infrastructure, and Knut Ørbeck-Nilssen, CEO DNV Maritime, representing the Foundation Det Norske Veritas, signed a Memorandum of Understanding (MOU) on establishing a new UAE Decarbonisation Centre.
The Marine Environment Protection Committee’s (MEPC) 80th session in July showed that shipping is now on an accelerating path towards full decarbonisation. However, the challenge of realising this goal is complex and can only be achieved through a cooperative crossindustry effort.
The new UAE Maritime Decarbonization Centre, a joint initiative from the Ministry of Energy and Infrastructure of the UAE and Foundation Det Norske Veritas (DNV), is designed to put this collaborative focus at the centre of sustainable decarbonisation. It will work to connect stakeholders from across the maritime industry and beyond, to become a driving force for reducing green-house gas emissions globally.
“The establishment of the UAE Maritime Decarbonisation Centre reflects our unwavering commitment to addressing climate change and promoting sustainable practices within the maritime industry,” says Suhail Al Mazrouei. “By collaborating with DNV, we aim to leverage their expertise and global network to drive innovation and accelerate the adoption of decarbonisation technologies.
The Centre will play a pivotal role in advancing our national and regional sustainability goals, while contributing to the global efforts in combating climate change.”
“The Foundation Det Norske Veritas is driven by a desire to help society tackle major global transformations,” says Remi Eriksen, president and CEO of the Foundation Det Norske Veritas and DNV. “The recent IMO decision to greatly strengthen international shipping’s emissions targets will spur the maritime industry to accelerate its transition.
“At DNV we deeply believe that cross-industry collaboration is vital to realising this goal and are working to share our deep and broad industry expertise through maritime decarbonisation centres in key regions of the world.
“The founding of the UAE Decarbonisation Centre, in co-operation with the Ministry, is another significant milestone for the industry and we look forward to welcoming new partners in the future.”
The Centre will take a multi-faceted approach, working on leading joint industry research programmes, collaboration with governmental, industry, and academic stakeholders, and attracting and developing new talent to the industry.
In addition, the Centre will focus on programmes that incubate and accelerate the development of new technologies and provide a centralised hub for information on decarbonisation solutions.
“We are very pleased to collaborate with the UAE’s Ministry of Infrastructure and Energy to establish the Maritime Decarbonization Centre,” says Ørbeck-Nilssen.
“Initiatives like the Centre are essential as we look to accelerate towards a decarbonised future. We need to build via co-operation, foster innovation, and scale local strengths into global leadership. With its strategic location and strong support from industry leaders, the Centre is poised to become a hub for maritime decarbonisation efforts.”
The partners are planning to launch the Centre at the beginning of 2024.
Seafarers’ Union RMT recently gave its view of the UK government’s distribution of another £34m to fund competition for shipping decarbonisation projects.
RMT general secretary Mick Lynch said: “We recognise that shipping and every other part of the transport network needs to decarbonise, including the fleets of crew transfer and other vessels delivering clean energy from renewable offshore sources.
“Unfortunately, the latest tranche from the £206m budget for shipping decarbonisation continues to prioritise competition and the illusion of ‘green shipping corridors’ over seafarer jobs and maritime safety.
“It’s not good enough for the government to be agnostic over technology whilst the likes of P&O greenwash their unlawful actions against British workers.
“RMT is extremely concerned that the failure to link this public funding to training and employment for maritime workers is a defect that will sink this government’s Maritime 2050 strategy.”
The UK Department for Transport recently announced £34m of public funding from the UK Shipping Office for Reducing Emissions, for projects aimed at decarbonising shipping to apply for.
This is the fourth round in the government’s Clean Maritime Demonstration Competition.
Following on from the recent MEPC 80 conference at the International Maritime Organization, recent studies have highlighted the issue of it is being technically possible to reduce shipping emissions by 28-47% by 2030, relative to 2008.
Guido Schulte, managing director, maritime technologies/sales director marine and offshore at ship design and engineering company Elomatic, comments: “Reaching the ambitious targets for greenhouse gases is principally achievable, but it will require a combination of measures to be in place.
“Many of these can be traced right back to the design phase.
From introducing lower speeds, new operational measures, technical measures, including alternative fuels, all rely on scrutiny and innovation from the outset.
“Implementation of these measures is a challenge for today’s ship designers. Decisions that designers make now will define the future for both new ships and vessels adopting new technology. We not only need to iterate rapidly to find the best combinations of technologies, fuels and operational measures, but will also need to simulate vessel performance to ensure that they can meet their commercial goals while reducing emissions.
“This design challenge necessitates a new level of resource and expertise to be brought to the table. From in depth evaluations on safety, usability, and energy efficiency; to specifics around hull form optimisation and understanding new fuel types and the nuances they bring with them – this is a challenge that in the first instance needs significant insight from the world’s ship designers.”
Bureau Veritas has delivered an Approval in Principle (AiP) to Wah Kwong Maritime Transport Holdings, a Hong Kong shipowner, and Qiyao Environmental Technology (Qiyao Environ Tec), a subsidiary of Shanghai Marine Diesel Engine Research Institute, for a carbon capture and storage (CCS) project onboard two Wah Kwong vessels.
The AiP, which was delivered at a ceremony held at BV’s Shanghai office, follows a joint study led by BV, Wah Kwong and Qiyao Environ Tec, which validated the technical feasibility of using CCS technology on existing vessels as a measure to ensure compliance with the International Maritime Organization’s (IMO’s) Carbon Intensity Indicator (CII)regulation.
The analysis focused on two bulk carriers in Wah Kwong’s fleet and assessed the viability of using CCS technology to upgrade those vessels’ CII ratings.
Based on the specific design parameters of the vessels, Qiyao Environ Tec developed a customised design of a CCS unit for the two vessels. The CCS unit has passed laboratory tests, achieving more than 85% CO2 capture from the exhaust gas flow, and is being continuously optimised and upgraded. The system is based on an organic amine solution that extracts CO2 from exhaust gas, before it is cooled into liquid form and stored in a low temperature storage tank.
The study showed that CCS enabled the two vessels to remain compliant by upgrading and maintaining their CII rating at a C level until 2030. It considered all aspects of retrofit space, operational impact, CAPEX and OPEX, as well as the upcoming EU Emissions Trading System (ETS), to assess the future investment and revenue expectations for each vessel.
BV provided comprehensive support for the project, from vessel selection in the early stages of the project, to the design layout of the CCS system on board, certification and cost analysis. BV reviewed the plans according to existing regulations and rules to ensure the safety of the vessels and equipment, and validate that the
Reaching the ambitious targets for greenhouse gases is principally achievable, but it will require a combination of measures to be in place
carbon emission reduction targets are effectively achieved during the operation of the vessels.
The project aims to support the future commercial application of CCS technology in the maritime sector, providing a clear analysis to guide decision-making by shipowners and related parties, especially for older vessels in operation.
Hing Chao, executive chairman of Wah Kwong, says: “With regulations such as the IMO’s CII and the EU ETS coming into force for shipping, it is essential to ensure compliance and to reduce the carbon footprint of existing vessels for years to come. Carbon capture and storage technology is one of the net-zero solutions currently available.
“Wah Kwong takes a holistic approach to sustainability and is proud to work with Bureau Veritas and Qiyao Environmental Technology on this pioneering application of CCS for the maritime sector, which is now validated with the issuance of an AiP. We hope this would encourage further studies or advance implementation of the CCS technology.”
Jianfu Dong, president at Shanghai Qiyao Environmental Technology says: “Carbon capture and storage technology has been available for several decades, notably in industrial projects on shore, but only recently have we started to deploy its considerable potential for the maritime industry.
We are proud to receive this AiP from Bureau Veritas, which confirms the viability of our carbon capture
technology as a retrofit solution to reduce CO2 emissions from existing ships. Our hope is that this innovative project will also help spur the development and implementation of CCS technology in shipping more broadly.”
Alex Gregg-Smith, senior vice president and chief executive, North Asia and China at Bureau Veritas Marine and Offshore, says: “At BV, we are committed to supporting shipping stakeholders in their decarbonisation journeys, helping our clients comply with environmental regulations, implement green solutions onboard, and measure decarbonisation progress. In an era of fast-evolving regulations and technology, the independent expertise of classification societies will help shipowners identify the best solutions for their ships, taking into account the practicalities of fleet operations. This project is a great example of collaboration, with all parties coming together to ensure the safe development and deployment of technology that will support more sustainable shipping.”
It is essential to ensure compliance and to reduce the carbon footprint of existing vessels for years to comeBureau Veritas, Wah Kwong Maritime Transport Holdings, and Qiyao Environmental Technology, attend Approval in Principle ceremony at BV’s Shanghai office. From left to right: Steven Wang, Mach Section Manager, CPO (BV); Capt Changzheng Chen, operations and business development director (Wah Kwong); Hui Yao, president’s assistant/general manager, Ministry of Planning and Industry (SMDERI); Jianfu Dong, president (SMDERI); Bill Chen, deputy chief executive (BV); Hing Chao, executive chairman (Wah Kwong); Capt Jianfeng Zhou, managing director; Dr Huatao Jiang, director of innovation north Asia zone, director of M&S (BV); Hare Ram Sah, fleet director (Wah Kwong); Daniel Song, head of Expertise Center, I&TD (BV) Eric Christofferson Chief Product Officer,
There’s been so much discussion in the run-up, during and post-MEPC 80 regarding how the agreed revised GHG strategy will shape the shipping industry’s future. Action from the International Maritime Organization (IMO) is certainly important to raise maritime’s ambition to decarbonise, as it creates a framework and establishes targets for the industry to work towards.
However, with debate still rife about the efficacy of this year’s Energy Efficiency Existing Ship Index (EEXI)/Carbon Intensity Indicator (CII) regulations in driving greener operations, as well as a lack of concrete enforcement of the IMO’s greenhouse gas strategy coming out of MEPC 80, it is likely the inclusion of shipping into the EU Emissions Trading System (ETS) next year will have a more significant impact.
The inclusion of shipping in the EU ETS will fundamentally change the way shipping’s carbon exposure is measured and managed. This will significantly impact commercial decisions at every stage of the voyage lifecycle. To address these evolving
complexities, maritime organisations will need to begin changing their daily operations or risk non-compliance and heavy penalties. Some owners and charterers are reassessing whether voyages to and from Europe will be viable, while others are looking at ways they can optimise vessel operations to ensure they don’t incur large penalties when travelling through the region. Against this backdrop, the ability to make strategic freight decisions is more important than ever. Industry stakeholders must adhere to regulations and drive decarbonisation efforts while contending with a wide range of other variables, including long-term contractual obligations, market fluctuations, vessel availability and fit, and visibility into cargo opportunities. Balancing these numerous, conflicting factors requires that maritime professionals have the tools they need to make informed decisions, collaborate during voyage execution, and audit their decisions along the way.
So, what strategies and tools do organisations have at their disposal?
A cleaner, greener fleet requires a smart approach to decision-makingVeson
Historically, commercial maritime decision-making was a largely disjointed and manual effort, meaning organisations could only account for the present moment or recent past, and had a limited scope of visibility with many unknowns. However, the widespread adoption of digital solutions has laid the foundation for a much-needed new era of decisionmaking to help businesses navigate today’s rapidly evolving market.
Enhanced decision-making empowers organisations to unlock major new opportunities, meet regulatory requirements, and navigate the complexities of the shipping industry.
To achieve the highest level of visibility and context in decisionmaking, organisations need a strong foundation of digital technology that consolidates key elements and data points into a single and easily accessible commercial platform. With strategic use of digital solutions, stakeholders can save time on tactical data gathering, collaborate with ease both internally and externally, and spend more time on analysis to arrive at optimal decisions for their business.
Three key elements can help pave the way for smarter freight decision-making: decision support, standardisation, and market intelligence. Let’s explore each in more detail and apply them to regulations like CII and EU ETS.
decision might impact different aspects of the business. For instance, decisions made by charterers regarding fixtures can have significant implications for voyage management, vessel availability, and regulatory compliance.
Accurate data is an essential ingredient to generating reliable predictions and identifying valuable patterns, avoiding the “garbage in, garbage out” scenario. To address EU ETS and other green regulations in daily workflows, maritime organisations require decision support that includes emissions-related criteria, risk management that includes carbon exposure, integrated reporting, and adaptive technology that can evolve alongside regulations.
Smarter freight decision-making also requires a focus on standardised data. While progress has been made in establishing industrywide data standards, there is still work to be done in shaping a comprehensive ecosystem.
Standardised information should extend beyond any one organisation and even beyond the maritime link in the supply chain, fostering collaboration with other systems and stakeholders to uphold existing industry standards and collectively define new ones when necessary.
Currently, regulations such as EU-MRV and the IMO-Data Collection System provide good frameworks for emissions data reporting. However, more granular data will be needed to be able to accurately estimate fuel consumption for a given movement.
Then, building on these estimates, companies will also need to evaluate emissions – including those under EU ETS. As not all voyages will be applicable for the EU ETS regulation, organisations will need the ability to understand what percentage of the emissions apply, while also accounting for the phase-in logic of EU ETS over time.
a scalable way to create reports that account for carbon risk and support compliance. Greater granularity is needed with this reporting so companies can drill down into reports on a desk, strategy, vessel type, and contract basis.
Finally, market intelligence plays a crucial role in the dynamic maritime shipping ecosystem. Organisations must be able to react and adapt to various factors, including fluctuations in commodity supply and demand, changes in fuel prices, weather patterns, and new regulations. Weather, in particular, and how vessels react to it, can dramatically impact fuel consumption, and therefore carbon risk which can impact EU ETS compliance or CII rating. Access to differentiated market intelligence can provide a competitive advantage, allowing industry participants to leverage their own data and tap into available market data effectively.
By considering the impact of decisions, promoting standardisation, and harnessing market intelligence, businesses in the maritime shipping industry can make informed choices, optimise operations, and gain a competitive edge.
Veson’s suite of solutions provides risk managers and freight traders the ability to systematically visualise how market shifts affect their freight, bunker, and carbon positions, properly align contracts, and save valuable time. With our Trading and Risk solution, organisations are equipped with options for all of the above challenges brought forth by EU ETS and other regulations.
Enabling smarter freight decisionmaking is essential for navigating the complexities of the maritime industry in 2023. By embracing digital solutions, stakeholders can break down data silos, access real-time information, and leverage insights that drive opportunities while keeping up to date with regulatory compliance.
To make informed decisions, several factors must be considered. First, it is crucial to understand how a potential
Standardised data will also be essential when it comes to tracking accounting for EUAs and EUA Allowances. Organisations will need to track these instruments alongside physical exposure to achieve a total picture of their risk. They will also need
Veson’s integrated ecosystem of decision support, standardisation, and market intelligence empowers organisations to make informed decisions, optimise operations, and gain a competitive advantage in the rapidly evolving maritime shipping landscape.
Accurate data is an essential ingredient to generate reliable predictions
Technology company ZeroNorth and Energy LEAP, a strategic alliance between energy majors, together with other industry partners, have published a draft proposal for consultation for a Vessel Emissions Reporting Standard (VERS 0.9). This work is the initial outcome of broader work towards defining and releasing a noon report standard.
The new open standard is the culmination of eight months of consultation and collaboration with shipowners, charterers, energy majors, association bodies and software vendors, and sets out to enable emissions reporting required by law, supporting decarbonisation and regulatory compliance.
A standard way of managing and reporting emissions data is fundamental to tracking progress and ensuring compliance with the International Maritime Organization’s decarbonisation goals. VERS 0.9 aims to create a standard outlining the data points that should be collected on a daily basis. This will improve the quality of
Monitoring systems take a variety of roles in ensuring that the maritime industry can meet targets, whether environmental or financial
the data operators collect, as well as further assist owners in reporting on emissions at the end of each year.
Vessel data that is collected today is based on past industry data needs. As the industry evolves and new requirements around environmental reporting arise, noon reports or vessel reports also need to adapt. A new standard is needed to enable owners to overcome the challenges of both required and voluntary emissions reporting.
Broader industry context, including continued discussion about how the industry reports its own environmental impact, has intensified the need for collaboration. There is now a growing recognition for industry-agreed data standards, as a foundation for any roadmap for genuine emissions improvements.
VERS 0.9 will provide a validated data set to advise vessel owners and operators on what data needs to be collected to ensure they are able to respond to today’s everincreasing environmental and commercial
reporting requirements. In this way, the standard sets out the data required to facilitate regulatory and voluntary emissions reporting. VERS 0.9 can be used by vessel reporting providers such as ZeroNorth to understand the data points that need to be incorporated into their solutions, or as a checklist for owners to ensure the right data is being captured by crew across their fleet.
VERS 0.9 is designed for both daily data collection, aligning with traditional noon report approaches, and for the possible collection of data at key or significant points during a voyage. Other information covered by the standard includes the specific charter party clauses that are agreed upon when planning a voyage, fuel consumption, cargo carried, and CII correction factors.
The proposed standard marks the first step on a wider roadmap aimed at defining a standard which enables the full current range of emissions reporting requirements. Once adopted, this will bring a stepchange in the capability of industry players to deliver on their emissions reporting obligations.
In all, VERS 0.9 will improve the regularity of emissions data being captured by ships, powering up the industry’s ability to make a real impact on reducing emissions. The standard has been published for a period of industry consultation and will be finalised as version 1.0 once consultation is completed in September 2023.
Speaking on the announcement, Lora Jakobsen, chief purpose activist at ZeroNorth, says: “We’re proud to be part of the cross-industry working group that has worked together with Energy LEAP and other industry leaders to develop a vessel emissions reporting standard. As our industry grows increasingly complex, it’s critical that we work together to match our environmental actions with robust reporting requirements.
“Making global trade green will take multilateral action across the value chain. Creating a standard data set to be collected daily on vessels is critical to ensure owners can
enhance emissions reporting, set benchmarks and accurately measure the amount of CO2 currently being emitted, and ultimately improve on those emissions.”
VERS 0.9 has been developed by a working group led by Energy LEAP, with ZeroNorth bringing its direct expertise in optimising voyages, vessels, fleets and bunker to the collaboration. As a continued part of its mission to global trade green, ZeroNorth has also facilitated engagement with its own Impact Today working group, helping to broaden engagement on the VERS 0.9 standard.
ZeroNorth recently announced it has been selected by leading global merchant and processor of agricultural goods Louis Dreyfus Company (LDC) to help accelerate the company’s decarbonisation journey by providing data-driven optimisation services to improve vessel performance and reduce fuel consumption across LDC’s chartered fleet of approximately 200 vessels, ranging from handysize to capesize.
The ZeroNorth platform converts data into tangible actions, interconnecting millions of data points into a single source of truth. The platform will provide LDC with data-driven recommendations on optimal routing based on specific voyage, vessel, bunker and emissions optimisation objectives.
LDC will also benefit from further insights into its fleet, with a real-time view of the status of all vessels and suggested actions to be taken to improve performance.
Flag and port state control authorities will need new tools to monitor compliance within the next wave of Emissions Control Areas (ECA) if compliance is to meet minimum standards, according to emissions management start-up SeaARCTOS.
The Mediterranean sea will join the world’s other designated ECAs on 1 May 2025, requiring owners to switch from high to low sulphur fuel before passing Gibraltar, Suez and the Bosporus.
Proposals discussed at the recent International Maritime Organization Marine Environment Protection Committee would see a Northeast Atlantic ECA link the Mediterranean ECA with those already established in the English Channel, North Sea, Baltic Sea. A further plan for a Canadian Arctic ECA would extend from the northern limits of the North American ECA effectively encompassing the continent.
The additional European ECA would effectively cover the majority of Europe’s waters requiring a vessel sailing into the Mediterranean Sea from the Suez Canal bound for a North European port to be compliant for that whole section of the voyage.
The pressure on vessel operators to demonstrate fuel switches to inspecting authorities before entering and after exiting these ECA zones will increase considerably. So will the burden of compliance monitoring by port and flag state control authorities whose job it is to enforce the regulation.
SeaARCTOS estimates that the Med ECA alone will impact 700,000 transits a year, but inspection and enforcement could be limited to around 10% of vessels and only on the inbound leg. The company believes that as attention has shifted towards emissions of carbon dioxide and other greenhouse gases, sulphur no longer commands the attention it deserves.
In April this year, SeaARCTOS announced completion of more than 20,000 hours of real-world testing on its Arctos-1 stack-mounted sensor, gathering data from the fleets of Interlink Maritime and Bernhard
Schulte. Type Approval in Principle was awarded by Lloyd’s Register.
ARCTOS-1 captures data directly from the engine and transmits it to the cloud independent of the ship’s communications system. The system is entirely self-contained, powered by waste heat from the stack and gives consistently accurate readings of fuel switches when ships enter or exit ECA zones.
“There is a risk that as the industry focuses on carbon, that sulphur emissions fall into the background, but they continue to present a serious public health risk and a compliance challenge,” says Michael Kougellis, SeaARCTOS CEO.
“Growth in the ECA network means that demand for emissions monitoring and compliance management will continue to increase, requiring a solution the industry and governments can benefit from.”
ARCTOS-1 units are available by subscription per vessel per day, there is no hardware to buy, no communications costs or other hidden charges. The ability to remotely monitor the time and position of fuel switches also has benefits for owners and charterers, since it supports best practice on fuel management and ESG strategies. Future development of the sensor will include reporting emissions of NOx and CO2 as well as measurement of methane slip.
Freight management solution provider Veson Nautical recently announced a collaboration with GeoServe, a company dedicated to simplifying voyage operations and streamlining post fixture activities.
GeoServe will join Veson’s growing Platform Partner Network, which establishes native integrations with strategic systems to enable data-driven connectivity, reduce manual processes, unlock powerful insights, and achieve true continuity.
The integration will connect the Veson IMOS Platform (VIP) and GeoConnect, GeoServe’s port disbursement accounting platform, to help streamline, optimise, and seamlessly manage port disbursement
workflows and synchronise port cost data.
GeoConnect aims to revolutionise the perception of port disbursement handling by transforming this valueadded service into an active contributor in reducing the bottom line. Annually managing more than 6,500 port calls and processing over $300m dollars in port payments, GeoConnect harnesses the power of experienced maritime professionals, time tested processes, and service innovation to help ship owners and operators achieve their port objectives with ease.
For mutual clients who opt in, this integration provides the ability to seamlessly leverage GeoConnect’s proprietary application capabilities to make data driven decisions that both improve vessel turnaround time at port and manage port cost data. Users can also send port DA requests from VIP to GeoConnect as well as nominate agents directly from VIP.
By incorporating port and disbursement information into broader operational workflows, the VIP –GeoConnect integration allows mutual clients to streamline engagements with local port agencies, driving time and cost savings.
Graham Piasecki, director of commercial strategy, comments: “A crucial factor in the efficiency and profitability of a maritime organisation’s voyage operations is the quality of their disbursement accounting processes. However, traditional paper-based disbursement accounting involves complex communications chains and requires a heavy amount of administrative work, leaving considerable room for error.
“Creating a smooth experience at port starts with streamlined access to vital port and disbursement information, which is where the VIP –GeoConnect integration can help.”
Sanjay Kapoor, CEO at GeoServe says: “Building an ecosystem of digital solutions in a dynamic maritime landscape is only possible through collaboration. GeoServe’s proprietary application capabilities, coupled with Veson’s solutions, will empower mutual clients to digitalisze their workflows, and make data-driven decisions for
increased operational efficiency. This partnership is a testament to our shared vision of innovation and excellence in the maritime industry. Together, we are helping our clients navigate port operations, leveraging the power of technology and experienced maritime professionals to achieve their port objectives with ease.”
Finnlines, a leading operator of cargo and passenger vessels (ro-pax vessels) in the Baltic Sea and the North Sea, has announced an agreement with NAPA, a global maritime software and data services expert, to install NAPA’s electronic reporting, fleet monitoring and stability management solutions on two newbuild “superstar-class” ro-pax vessels. The two highly sophisticated ro-pax vessels, which will use several energy-saving technologies, will operate between Finland and Sweden. NAPA’s next-generation digital solutions will harness the detailed, traceable data in the ships’ logs on all aspects of operations and use it to generate valuable insights on safety, efficiency, compliance and sustainability for the sister vessels Finnsirius and Finncanopus – thanks to enhanced data capturing and sharing between onboard and shoreside teams.
Under the agreement, the two ships will be equipped with NAPA’s electronic logbooks, which will automate and streamline mandatory reporting and record-keeping required by the flag state and the International Maritime Organization’s MARPOL and SOLAS conventions. This will help reduce the administrative burden for crews, save time and limit the risk of errors.
The Finnsirius and Finncanopus will be the first ships under the Finnish flag to boast the new NAPA logbook with cloud-based fleet intelligence modules, which enable seamless real-time data exchange between crew on board and Finnlines’ onshore organisation. This operational data will be integrated and analysed to identify opportunities for further optimisation, supporting Finnlines’ commitment to sustainable and efficient operations.
Furthermore, the two vessels will feature NAPA’s stability management solution, which is already used by the current Finnlines fleet. The software enables ship and shoreside teams to share and view all stability data, including loading conditions, stability margins, and watertight door status, in real time, thereby supporting a more proactive approach to voyage safety and planning.
Built by the China Merchants Jinling shipyard, the two “superstar class” vessels present greater capacity compared to other ro-pax ships in the fleet, carrying up to 1,100 passengers each and 5,200 lane metres cargo, as well as enhanced energy efficiency and environmental performance. Finnsirius is expected to be delivered in July 2023 and will enter operations in the autumn of 2023, while Finncanopus is scheduled to begin operations by the end of the year.
Pasi Väänänen, technical superintendent at Finnlines, says: “Our sea connections are a vital link between countries bordering the Baltic Sea and the North Sea, bringing people together and supporting businesses and supply chains in the region. We are dedicated to meeting this important need for maritime transport as efficiently, safely and sustainably as possible.
“Proper data capturing and analysis onboard our vessels is an essential
foundation for progress on all these aspects. We are proud to pursue our digital journey with NAPA, which will provide our teams with the data they need not only to ensure compliance, but also to further optimise our overall business operations moving forward.”
Esa Henttinen, executive vice president for safety solutions at NAPA, says: “This partnership is a tangible example of the new opportunities that shipping can unlock with its onboard operational data, with efficiencies that go beyond navigation and route optimisation.
“Beyond mandatory reporting, this data can be integrated and analysed to deliver insights that will inform actions to deliver more efficient and sustainable operations.
“More than reporting on results, greater data collection is also an opportunity to improve those results. By streamlining various reporting on technical, environmental, vessel discharge and waste management, including MARPOL, ESG, IMO DCS, EU MRV, and CII, we can monitor and boost efficiency on a wide range of operational factors, from fuel efficiency to waste management and safety, for example. This is why electronic reporting solutions are bound to play a key role in the decarbonisation transition, helping companies harness their data for better decision-making.”
Odfjell Ship Management has partnered with Alfa Laval in its decarbonisation effort by selecting the Alfa Laval OceanGlide fluidic air lubrication system to be installed on one of their tankers.
Alfa Laval OceanGlide is based on patented fluidic technology and the latest addition to Alfa Laval’s sustainable portfolio, aimed at supporting shipowners in addressing fuel and emission challenges.
OceanGlide integrates fluidic technology into air lubrication to optimise energy saving. This patented and class-approved system utilises fluidic oscillators to generate an even layer of micro air bubbles across a vessel’s entire flat bottom, reducing friction and drag. By reducing the vessel’s resistance, the OceanGlide
system offers a proven method for reducing fuel consumption and CO2 emissions.
“We are delighted that Odfjell has selected OceanGlide to enhance its vessel’s energy efficiency,” says Anders Lindmark, business unit president, heat and gas systems, Alfa Laval. “We strive to develop and bring innovative and environment-friendly technologies, such as OceanGlide, to our customers that support them in meeting their decarbonisation targets and enable them to sail efficiently.”
Erik Hjortland, vice president technology at Odfjell, says: “Odfjell has installed more than 130 energy-saving devices on its vessels since 2014. In Q1 2023 we reported an historical low -carbon intensity – more than 50% below the International Maritime Organization (IMO) baseline for our fleet. We believe fluidic air lubrication technology is a natural next step for us.”
One of the key advantages of Alfa Laval OceanGlide is the ability to regulate power consumption through oscillation bands. It uses fluidic technology to create streamlined sections on the vessel’s flat bottom, each with its own fluidic band that generates bubbles. The independent steering of each band allows a more controlled and streamlined flow of air bubbles for ensuring optimal efficiency, maximum coverage and reduced compressor power.
The system requires no structural modifications or vessel recertification, which makes it ideal for retrofitting as well as for new builds. The fluidic bands, designed with a low profile and no moving parts, can be configured underneath the ship at any shipyard with ease.
Air lubrication technology is recognised by the IMO as an “Innovative Energy Efficiency Technology” to lower carbon emissions. The technology supports compliance with Energy Efficiency Existing Ship Index), Energy Efficiency Design Index and the reduction of carbon intensity to meet IMO’s carbon Intensity Indicator requirements. Besides this, the innovative fluidic air lubrication technology minimises CO2 emissions thereby helping in limiting CO2 tax.
Far Eastern markets are proving to be attractive to suppliers of ballast water treatment systems (BWTS) as countries seek to ensure that they are on top of the emissions problem that ballast water represents.
Ballast water equipment suppliers such as Optimarin have been moving into the market. Optimarin recently announced that it is establishing a manufacturing base in China to boost the availability of its BWTS for the Asian shipbuilding market and the company is also targeting retrofit work for existing fleets.
“We are now pursuing partnerships with several Chinese suppliers to focus on highquality production of BWTS components at reasonable cost for delivery to regional yards,” the company said recently.
“We are conducting due diligence when selecting new suppliers to verify that components meet our required high-quality standards and thereby ensure the proven reliability of our robust system is maintained, while making it available at a reasonable
price as we expand in this market. In addition, we are keeping our ‘dual-supplier strategy’ in place to mitigate the risks of potential delivery issues, and make sure we can get systems and components to our customers on time.”
The Optimarin Ballast System (OBS), which can be delivered as a compact skid-mounted solution, comes with a full documentation package and verified compliance with the International Maritime Organization’s (IMO’s) Ballast Water Management Convention, as well as with US Coast Guard type approval.
As the shipping industry moves towards greener-fuelled newbuildings because of the new environmental regulations coming into force, according to Optimarin: “Lowercost Asian yards – mainly in China, South Korea and Japan – have secured 70% to 80% of orders for vessels in various segments including container ships, bulkers, tankers and liquefied natural gas carriers that are currently under construction, with scheduled delivery in the 2025-27 timeframe. These
The ballast water treatment systems industry is growing, helped by new markets opening up and exciting innovations
newbuilds will have to be delivered with an IMO-compliant BWTS installed to meet regulatory requirements.”
Optimarin added: “China has emerged as the dominant player among the big three shipbuilding countries, having secured nearly half of all newbuild orders in recent years. We believe having a local supplier presence in China will give Optimarin a big market advantage in terms of competitive price and short delivery time for yards, while we also provide expertise in the project development phase and can assist with a ballast water management plan.
“The main priorities for yards with a BWTS supplier are the ability to deliver on time and at the lowest cost. But we are also seeing a growing tendency where shipowners determine which system they want installed due to historic reliability issues they may have had with other systems.”
“Furthermore, having in place a global after-sales network for BWTS maintenance and support is also an increasing priority for shipowners to ensure operational uptime. Consequently, Optimarin is now taking orders in the newbuild market where especially European owners are looking for reliable systems with low operational cost and a strong service network.
“A lot of work has gone into enhancing OptiLink, our cloud-based digital application that enables realtime monitoring of the BWTS, data generation for improved planning of ballasting operations and remote connectivity for online software updates of the system, as well as data-sharing for compliance.
“We are still focusing on the busy retrofit market, where we aim to sell as many as 700 systems over the next two years, backed up by a fast-track delivery model to meet the IMO deadline.
“Now we are also seeing demand for retrofits of earlier BWTS retrofits as competing systems have fallen short of shipowners’ expectations in terms of reliability and support.
“This shows that it is important to choose the right maker from the beginning.”
In a recent interview with SciDev, Philippino scientist Benjamin Vallejo Jr, marine biology professor at the Institute of Environmental Science and Meteorology, University of the Philippines Diliman, explained more about a new method of sterilising ballast water as a means of preventing invasive species from spreading from port to port.
The new low-cost solution may offer an alternative to the more expensive equipment that is usually required to deal with the problem.
The prototype of the sterilising system uses a combination of ultraviolet rays and mechanical methods to reduce the number of invasive species in ballast water.
According to Vallejo, it is significantly cheaper than other available methods.
“The [Philippine] model costs US$300,000, as compared to US$1m to $5m in the market,” Vallejo told SciDev.
The biological invasion of parts of South-East Asia by Mytella strigata, an invasive mussel species native to the Western Atlantic, costs the Luzon aquaculture industry in the Philippines about PHP300m ($5.4m) a year, according to the SciDev story.
One of the targets of the International Maritime Organization’s ballast water convention has a target of 8 September 2024 for all ships to meet the D2 standard, which specifies the
maximum amount of viable organisms harmful to human health that can be discharged.
Ships built on or after September 2017 are already required to meet the D2 standard. Ships built prior to that date are allowed to discharge untreated ballast water in the open seas until the deadline.
While some shipping companies can afford to have the sanitation system installed on their ships, others opt for shore- and barge-based systems available at certain ports. The new Philippine prototype is a port-based sanitation system, although a shipbased version is possible, Vallejo said in the interview. One of the challenges shipowners and operators face is the cost of the installation of such systems onboard ships.
Vallejo told SciDev that the prototype technology, which meets the D2 standard, “will reduce the risk of biological invasion by at least 60%”.
Vallejo estimates that it would cost about $3.6m to install the setup in the port of Manila. This cost includes five of the treatment machines, as well as testing and storage facilities, similar to the setup in Singapore.
According to a new report by Vantage Market Research, the Global ballast water treatment systems (BWTS) market is estimated to be valued at
$12.2bn by 2030 with a compound annual growth rate (CAGR) of 10.4% during the forecast period 2023 to 2030. The BWTS market grew to $5.56bon in 2022.
According to the research company, the necessity of maintaining marine ecosystems and abiding by international standards has increased recently, fuelling the market for BWTS globally. With their booming industrial sectors, emerging economies like China, and India are greatly increasing the demand for such systems.
Shipowners and operators have increased their investments in effective and ecologically friendly treatment systems to meet the demands of the ballast water convention.
The market is being shaped by technological developments in the area as well, with businesses constantly coming up with new ways to increase performance overall and optimise treatment procedures.
The report emphasises that the need to comply with international laws and the increased awareness of environmental issues is what is driving the market for BWTS. The industry’s adoption of cutting-edge technologies and creative solutions boosts these systems’ effectiveness and efficiency further, assuring the sustainable and responsible management of ballast.
The report suggests the high demand for the Physical Disinfectant Treatment segment will increase the market over the forecast period 2023 to 2030, and by capacity, the more than 5,000m3 segment dominated the largest market share globally during the forecast period 2023 to 2030,
By service, the installation, and calibration segment holds the largest share across the globe in the forecast period 2023 to 2030, while the tankers segment dominated BWTS during the forecast period .
In 2022, Asia-pacific dominated the market with the highest revenue share of 48.50%, while North America will grow at a high CAGR from 2023-2030.
Several factors can affect the growth of the BWTS industry. Some of these factors include:
» Regulatory frameworks
The International Maritime
Organization (IMO) and other international maritime organisations’ regulatory frameworks and criteria have a big impact on the market’s expansion. BWTS are required for environmental compliance and invasive species prevention due to the implementation of rules, such as the Ballast Water Management Convention.
» Growth of the shipping industry
The demand for BWTS is greatly influenced by the expansion of the world shipping industry. The requirement to manage bilge water and adhere to laws becomes more critical as global trade and maritime operations continue to grow. The market’s potential for growth is influenced by elements like economic expansion, trade volume, and the expansion of the world merchant fleet.
» Environmental awareness and concerns
BWTS are being adopted as a result of rising environmental consciousness and worries about the effects of ballast water on marine ecosystems. Governments, environmental groups, and stakeholders in the shipping sector are putting more of an emphasis on sustainable practices and reducing the harm that ballast water discharge causes to the environment. As a result, there is a market need for efficient treatment methods that reduce the spread of contaminants and invasive species.
» Technological developments
The development of ballast water treatment technologies and developments have a big impact on market expansion. Industry expansion is driven by the creation of treatment technologies that are more effective, affordable, and reliable. Ballast performs better and is easier to use thanks to developments in electrochlorination, UV radiation, filtration systems, and improved monitoring and control systems.
The global market for BWTS has several major trends that are
reshaping the business. Modern therapeutic methods that offer great efficacy and environmentally safe solutions, like ultraviolet (UV) radiation and electrochlorination, are receiving more and more attention.
With the integration of sensors, control systems and data analytics to improve system performance and enable remote monitoring and maintenance, automation and digitalization are receiving more attention. Hybrid therapy systems, which combine many technologies for maximum treatment effectiveness, are becoming more and more popular.
Modular and containerised systems, which offer flexibility, scalability, and ease of installation, are also becoming more popular on the market. Collaboration between producers, researchers, and regulatory agencies is becoming more and more important to promote innovation, harmonise standards, and guarantee the successful application of ballast water treatment technologies globally.
The report says that “challenges include the fact that the market for BWTS confronts difficulties since raw materials are expensive and have high installation costs. The high processing, maintenance and installation costs linked to these technologies limit market expansion.
“The initial capital expenditure needed for ballast water exchange is dependent on various elements, such as whether new air piping must be built or existing pipe must be modified to achieve the exchange goals.
“Market expansion is also hampered by a shortage of accessible local raw materials and worries about the storage of waste products from ballast water treatment. Additionally, the market has difficulties that could restrict expansion, such as the longer time needed for heat treatment to thoroughly purify water and the possibility of corrosion in tanks that store ballast water.”
Read the report at:
tinyurl.com/CSI-BWTSreport
Nikkiso Clean Energy and Industrial Gases (Nikkiso CEIG) is the latest company to join SEA-LNG – the coalition established to demonstrate the commercial and environmental benefits of liquefied natural gas (LNG) and the pathway it provides for maritime decarbonisation. Nikkiso supplies equipment, technologies and engineering services to support the safe operation of LNG as a marine fuel.
SEA-LNG membership will open up networking and collaboration opportunities for Nikkiso to support its work on cryogenic pumps and process systems, as well as broader cryogenic services. The group also works on heat exchanger systems and Nikkiso Turboexpander systems, and has experience in boil-off-gas management for LNG-fuelled vessels, methane slip mitigation and integrated LNG fuel gas supply systems.
Peter Keller, chairman of SEA-LNG, comments: “To achieve its critical decarbonisation targets, shipping will require a basket of fuels and technology options. Collaboration across the entire LNG
There is plenty of competition among companies offering alternative fuels that claim to be more eco-friendly. The question is which will provide the best solution when availability of sufficient quantities of product, not to mention background infrastructure, remain issues?
value chain, with companies like Nikkiso, ensures that LNG will have a place as a key part of that basket. As an important marine fuel, LNG can deliver on decarbonisation now with immediate greenhouse gas emissions reductions and that provides a low risk, incremental pathway for decarbonisation through bio-LNG and renewable synthetic e-LNG.”
Peter Wagner, CEO, Nikkiso CEIG Group, says: “Nikkiso Group aims to encourage the shipping industry to swiftly adopt LNG as a marine fuel because it provides a readily and immediately available low-carbon clean energy, using proven technology and state-of-the-art engineering. The fuel also has the physical properties to facilitate a more efficient ship construction integration compared with alternative fuels. This enables the maritime industry to lower emissions by a further 20% on the basis of clean energy and efficient ship designs. We look forward to being part of SEA-LNG to further this work.”
Steve Esau, chief operating officer of
SEA-LNG, says: “Carbon-neutral fuel solutions will not arrive in a bigbang process. Instead, we will see the incremental decarbonisation of existing assets as fuel production, transportation, storage and bunkering infrastructure and engine technologies continue to develop.
“We are excited to welcome another new member whose innovative technology and engineering expertise supports the cost-effective operation of LNG as a marine fuel today. As a fuel in transition, Nikkiso technology will also support the net zero-emissions of bioLNG today and e-LNG tomorrow.”
Methane emissions regulation has an important role to play in shipping’s decarbonisation. As an LNG technology provider, Nikkiso – with its peers – is continuously improving methane emission control and abatement. In the long-term, bio-LNG and renewable synthetic e-LNG are suitable next steps for LNG, as they are both compatible with onboard infrastructure.
SEA-LNG and Nikkiso reiterate that the global shipping industry needs all viable alternatives to oil-based fuels now – waiting is not an option.
Over coming decades, the lifetime cost of complying with regulatory regimes such as FuelEU Maritime for liquefied natural gas (LNG)-fuelled vessels will be around half that of methanoland ammonia-powered alternatives, according to a study by SEA-LNG.
Analysis from SEA-LNG shows the lifetime fuel costs of meeting key European decarbonisation targets for shipping through the LNG pathway are expected to be roughly half that of the methanol or ammonia pathways.
Building on recent work by the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) projecting fuel costs for alternative marine fuels out to 2050 and using long-term price benchmarks for ammonia, methanol and LNG as a marine fuel, SEA-LNG has calculated the cost of compliance with FuelEU Maritime regulations for a typical 14k teu newbuild container vessel coming into operation in 2025.
FuelEU Maritime requires vessels
to reduce the intensity of greenhouse gases produced by their energy consumption in coming years against a benchmark of the fleetwide average in 2020.
Grey versions of ammonia and methanol start at a significant disadvantage to LNG. The additional greenhouse gas emissions (GHG) involved in producing ammonia and methanol from natural gas means that respectively these grey fuels emit 47% and 14% more GHG emissions than VLSFO on a well-to-wake basis. Fossil, or grey LNG, offers up to 23% immediate GHG emission reductions compared to VLSFO on a well-to-wake lifecycle basis.
What this means is that owners opting for LNG-fuelled vessels will be able to meet the reduction targets until 2039 without needing to blend their fuel with low-carbon bio-LNG or renewable synthetic e-LNG. By contrast, owners of methanol- and ammonia-fuelled vessels will need to include significant proportions of a green fuel immediately to meet the regulations, inflating their fuel bills.
Assuming an average fuel burn for the typical 14k TEU newbuild container vessel of 146 tonnes of very low sulphur fuel oil equivalent per day, a methanol-powered vessel would require a 14% green fuel blend to comply with FuelEU Maritime in 2025 at a fuel cost of almost US$55m per year, assuming the use of biomethanol. An ammonia-powered vessel, if such a thing existed, would require a 33% green fuel blend to comply and face a fuel bill of about USD80m per year if using e-ammonia. LNG by contrast would require no blending with a fuel bill of just over USD20m per year.
By 2040, LNG would require a 14% green fuel blend and annual fuel costs are expected to reach around USD25m, assuming the use of bioLNG. Methanol’s green fuel blend
requirement, will have increased to 40%, resulting in an annual fuel bill of just over $55m, assuming the use of biomethanol – the effects of the increased volume of biomethanol required offset by the falling costs of the green fuel. For ammonia, the blend ratio will have increased to 53% with a blended fuel cost of approximately $70m – the effects of the increased volume of e-ammonia required more than offset by the falling costs of the e-fuel. By 2050, SEA-LNG analysis shows that all three fuel options will have significant blends of green fuels in the form of bio- and e-fuels and we expect to see a convergence in overall fuel costs.
In summary, this analysis shows (see table above) that the LNG pathway to compliance with FuelEU Maritime offers massively lower fuel costs than both the methanol and ammonia pathways, particularly in the first 15 years’ of the vessel’s life – a period critical for vessel financing decisions. The methanol pathway is approximately 2.5 times more expensive and the ammonia pathway 3.5 times more expensive.
A recent blog post by SEA-LNG examined Maersk’s use of bio-methane as a basis for bio-methanol and questions why it isn’t just liquified into bio-LNG – a much more efficient process, the blog suggests.
While Maersk aims to mass balance fossil methanol production with bio-methane, SEA-LNG highlights significant differences in conversion efficiency and emissions impact. Bio-methane to methanol conversion stands at around 65%, while biomethane to bio-LNG conversion reaches an impressive 90%-95%. Additionally, bio-methanol has lower energy density and comes at a higher cost than bio-LNG, as per recent studies.
SEA-LNG looks at the efficiency
and cost-effectiveness of biomethane, suggesting that bio-LNG may be a more favourable option for decarbonising shipping. It also explores the availability of diesel engine technologies that virtually eliminate methane slip, addressing potential concerns in this regard.
Svitzer, a global towage provider and part of AP Moller-Maersk, has signed a 15-year agreement to service Gastrade’s Alexandroupolis Independent Natural Gas System (Alexandroupolis INGS) liquefied natural gas (LNG) terminal, the first offshore LNG project in Greece.
Svitzer will apply its terminal towage expertise and experience to rapidly set up towage services and support for advanced LNG operations at the new import terminal. This includes supporting a floating storage regasification unit (FSRU) with a pipeline system connecting the floating unit to the Greek National Natural Gas Transmission System and onwards to final consumers in Greece and the Balkans.
Svitzer will provide four new ASD tugboats, fully manned by Greek crew, to assist the FSRU and the carriers delivering LNG. Svitzer tugboats will provide berthing, un-berthing, navigation assistance, and other terminal services including firefighting, pollution control, pilot and boarding party transfer. Svitzer will also provide support and station keeping services to the FSRU during initial installation.
The project marks Svitzer’s first entry into the Greek market and will see the company apply its knowledge
and skills in the local environment. The deal will result in the creation of both onshore and offshore job opportunities based at the terminal in Alexandroupolis.
While the Alexandroupolis LNG terminal is set to become operational in the beginning of 2024, Svitzer has already initiated the recruitment process to ensure staff undergo robust training in line with Svitzer’s operational and safety standards ahead of operations commencing. Training will include the use of advanced tug simulators replicating the actual environment around the Alexandroupolis LNG terminal.
Commenting on the agreement, Lise Demant, managing director, Svitzer Europe, says: “We look forward to being part of the first offshore LNG project in Greece and to welcome new Greek colleagues to Svitzer, who will help deliver reliable and high-quality towage service to Gastrade and its customers.”
Konstantinos Sifnaios, managing director at Gastrade, adds: “Highquality towage and marine services will be critical to the success of the Alexandroupolis LNG Terminal project. We are convinced that Svitzer is the right partner to deliver this, thanks to its extensive track record in terminal towage, its agile fleet management, and solid experience from servicing many other LNG customers globally. We look forward to working together with Svitzer to build jobs in the local market and ensure energy security for the region and beyond.”
Korean Register (KR) has granted an Approval in Principle (AIP) for a methanol-fuelled MR tanker, jointly
developed by KR, South Korean shipbuilders K Shipbuilding and equipment manufacturer S&SYS in June.
As part of the Joint Development Project (JDP) between the three companies, the MR tanker is designed as a dual-fuel vessel, harnessing the power of marine gas oil (MGO) and methanol. The vessel incorporates two methanol fuel tanks positioned on the port and starboard sides of the open deck.
K Shipbuilding spearheaded the vessel’s basic design and the methanol fuel tank design, while S&SYS undertook the development of the fuel supply system. KR ensured the safety and regulatory compliance of the design by thoroughly reviewing national and international regulations, leading to the issuance of the AIP for the methanol-fueled MR tanker.
With an increasing focus on reducing greenhouse gas emissions in the maritime industry, the adoption of decarbonised alternative fuels has become imperative. Initiatives such as the EU’s ‘Fit for 55’ package, targeting a minimum 55% reduction in greenhouse gas emissions by 2030, have underscored the urgency for shipping companies to explore viable solutions. Consequently, many major shipping companies have recently placed orders for methanol dual fuel vessels.
Methanol possesses significant advantages as a marine fuel. It is a liquid fuel similar to bunker fuel at room temperature, eliminating the need for pressurisation. Compared with extreme temperature fuels such as liquefied natural gas (LNG) at -162°C, hydrogen at -253°C, and ammonia at -34°C, methanol is easier to store and transport.
Furthermore, it is considered a green fuel with strong potential for commercialisation in the maritime sector due to its technical feasibility, less toxic nature compared with ammonia, and lower technical requirements compared with LNG fuel.
Lee Hyungchul, chairman and CEO of KR says: “KR remains committed to advancing decarbonised alternative fuel technologies, with a particular
focus on providing technical support for decarbonisation efforts. The methanol-fuelled MR tanker joint development project stands as a testament to KR’s dedication to driving the industry’s transition towards greener solutions.”
Jang Yoonkeun, CEO of K Shipbuilding says: “We are delighted to see that our years of hard work to develop green-fuelled vessels has resulted in today’s AIP for the methanol-fuelled MR tanker. We will further improve our technologies and pursue innovations in order to contribute to maritime decarbonisation.”
By granting AIP for the methanolfuelled MR tanker, KR reinforces its position as a leading classification society in championing sustainable and innovative maritime technologies that pave the way for a more environmentally conscious future.
The accelerating pace of the energy transition in shipping makes it essential that the industry provides support to the people who are part of this journey.
Training remains a key priority for the International Bunker Industry Association (IBIA) as it moves into a greener and more sustainable future addressing the needs of future manpower training and the futureproofing of the existing workforce.
To further the cause of a skilled and competent bunker workforce IBIA and Green Marine have signed a co-operation agreement to develop a methanol bunkering training programme, with support from the Methanol Institute.
The co-operation agreement aims to provide for existing and future crew operating on bunker tankers and bunker surveyors are competent and ready for methanol bunkering on a larger scale. The plan is to commence the training in Singapore first and expanding globally in 2024.
In the first instance, IBIA and Green Marine have worked together with the crew from the supplying tanker and the bunker surveyors involved in the methanol bunkering pilot in Singapore, identifying and plugging the training
gaps and competency needs prior to the pilot.
“IBIA’s strategic focus on training is driven by the impending transformative changes in the maritime industry, especially concerning alternative fuel options for achieving environmental targets by 2030 and 2050. We are committed to equipping our members with essential knowledge and skills to navigate this evolving landscape successfully.
“Our partnership with Green Marine allows us to expand bunkerrelated courses, enriching educational opportunities. We are grateful for the Methanol Institute’s endorsement, which reinforces the importance of our training initiative and the dedication of industry leaders to a well-prepared maritime workforce. Through strategic training and partnerships, IBIA strives to steer the maritime community towards a greener and more sustainable future, fostering a cleaner, responsible, and resilient shipping industry,” says Timothy Cosulich, chairman of IBIA
“Green Marine’s methanol training curriculum was created based on practical knowledge gathered over a decade of experience working on
methanol dual fuel vessels,” says Morten Jacobsen, CEO of Green Marine. “Our methanol specialists are captains and chief engineers with first-hand knowledge of working with methanol as marine fuel and the safe handling of same. Their experience includes services from methanol system design integration consultancy to newbuilding construction supervision, technical management, and operations. Our methanol training curriculum is supplementing baseline regulatory training requirements with practical, experience-based learning.”
“We applaud Green Marine’s ongoing efforts to support the development of methanol as a marine fuel, now together with IBIA, effectively creating the ‘gold standard’ for safe handling and bunkering,” says Chris Chatterton, chief operating officer of the Methanol Institute. “These are still early days for alternative fuels, making it a necessity to collaborate on fundamental elements for their safe and efficient integration with the maritime supply chain, bunkering and on-board handling. Such partnerships allow us as an industry to go further, faster, as we transition to a lower emissions environment.”
Technology group Wärtsilä will supply methanol-fuelled auxiliary engines for French shipping company CMA CGM. The engines have been ordered for six 15,000teu container vessels, which are being built at the Dalian Shipbuilding yard in China. The order was booked by Wärtsilä in Q2 2023.
The six container vessels will be the first CMA CGM vessels ordered to operate on methanol fuel. The choice of methanol is stated to be central to the company’s current decarbonisation ambitions; as operating an engine on methanol produces fewer pollutants than diesel and can be produced from sustainable, renewable-based energy sources.
“Our goal is to achieve carbon neutrality by 2050. By fitting our future fleet with methanol systems, we will be making a serious contribution towards achieving this target. For this reason, we require the experience and technological leadership that Wärtsilä provides in the development of reliable engines capable of operating with new, sustainable marine fuels,” says Xavier Leclercq, vice-president of CMA Ships.
“We have worked closely with CMA CGM for many years, with both our companies sharing a commitment to decarbonising marine operations,” says Roger Holm, president of Wärtsilä’s Marine Power business.
“We are, therefore, honoured to have been selected to supply the methanol-fuelled engines for
these newbuild vessels. We look forward to continuing to collaborate with CMA CGM on creating more responsible, more efficient, and more sustainable transportation solutions for the industry.”
For each of the vessels, the full Wärtsilä scope includes three sixcylinder and one seven-cylinder Wärtsilä 32M engines fitted with selective catalytic reduction (SCR) systems. The equipment is scheduled for delivery commencing in late 2024, and the vessel is expected to be delivered in autumn 2025.
Alfa Laval is taking a pivotal role in driving the marine industry’s transition to carbon-neutral green methanol with its methanol-capable solutions.
The company has expanded its portfolio of alternative fuel solutions with the introduction of methanolfired Aalborg boiler systems that offer exceptional fuel flexibility, accommodating a wide range of fuel types including methanol.
This addition marks a significant milestone in the marine industry as it will be the first time a methanol boiler will be installed onboard a ship.
The Aalborg boiler solutions are specifically designed with decarbonisation and fuel transition in mind. Besides operating on today’s fuels, including low-sulphur fuels, biofuels and liquefied natural gas (LNG), it is designed for compatibility with methanol and other emission-
reducing fuels. Alfa Laval’s “ready boiler” concept provides a future-proof platform, allowing for easy adjustments to the existing burner and boiler pressure section as needed.
“Our boiler solutions are designed to meet the growing demand for sustainable shipping and ensure readiness for today’s and tomorrow’s emission-reducing fuels, including methanol,” says Jeppe Jacobsen, head of global sales, heat and gas systems, Alfa Laval. “Having been pioneers in delivering steam boilers for LNG, we are pleased to be the first to support our customers in their fuel transition with our methanol-fired boilers.”
Irrespective of the fuel choice, Aalborg boiler solutions ensure substantial fuel savings through exceptional thermal efficiency and the utilisation of the innovative Turbo Clean, intelligent (TCi) technology. The TCi cleaning process not only enhances efficiency but also guarantees a prolonged boiler service life.
Alfa Laval has rigorously tested boiler operations with methanol at the Alfa Laval Test and Training Centre in Aalborg, Denmark since early 2021. In November 2021, the American Bureau of Shipping granted Alfa Laval the first marine Approval in Principle for operating boilers on methanol. In less than two years, Alfa Laval is ready to deploy methanol boiler solutions for some of the largest shipowners, driving the adoption of boilers for alternative fuels across the maritime industry.
Smart Green Shipping (SGS) has joined forces with Nuclear Transport Solutions (NTS) as part of the Winds of Change project, which kicked off several months ago. Winds of Change is a two-year project to assess technical, commercial and environmental viability of using 21stcentury wing sail designs to provide direct thrust to commercial ships.
NTS is a global provider of safe, secure and reliable nuclear transport solutions. As part of the UK’s Nuclear Decommissioning Authority, NTS uses its specialist transport and logistics expertise to help customers and partners around the world solve complex challenges.
The Pacific Grebe is one of a fleet of three specialist vessels in the Pacific Nuclear Transport Limited (PNTL) fleet. The fleet, over its history, has safely covered millions of miles shipping a range of nuclear materials to the likes of Japan, Europe and USA.
Di Gilpin, SGS CEO, says: “To have the opportunity to work with such a
Wind power has been gathering momentum as a means of propulsion, and there have been a number of initiatives in recent months aimed at promoting this growing segment
highly specialist ship and her deeply knowledgeable crew and managers gives us an excellent opportunity to demonstrate the feasibility of retrofitting SGS FastRig wingsails on to ships with the highest safety standards. If we are successful, this will give comfort to shipowners and managers that this technology will not compromise their strict safety protocols.
“Testing the FastRig on land initially ensures we iron out any technical glitches before installing on a working vessel. We are honoured to be able to work with NTS. Our commercial project partners, Drax and MOL Dry Bulk are working with SGS and NTS to define parameters for sea trials; our technical team includes Humphreys Yacht Design, designers of the FastRig; Caley Ocean Systems and Malin Group, FastRig manufacturers and Houlder, which takes responsibility for the ship to wing interface.
“The University of Southampton is working with SGS on verifying realworld performance results against the mathematical modelling that predicted
between 16% and 27% fuel/greenhouse gas savings over an annual period.”
Andy Milling, marine manager at NTS, says: “As owners of UK-flagged, high-quality specialist vessels, we are committed to support UK shipping netzero initiatives. We are looking forward to working with SGS to address the highly complex technical challenges that arise from retrofitting wind-assist technology onto merchant vessels.
“Our motivation is to reduce vessel emissions while maintaining our high performance and critical delivery schedules. SGS has convened a group of highly experienced technical and commercial organisations to deliver the project and its exciting to see how we will implement this technology with safety, security and reliability remaining our top priorities.”
The Winds of Change project will run from April 2023 to March 2025. SGS is currently installing a landbased test and demonstration FastRig at Hunterston Parc in Scotland. The learning from this project informs the safety, technical and performance parameters for the on-ship installation scheduled for 2024.
The project is part of the Clean Maritime Demonstration Competition Round 3 (CMDC3), announced in September 2022, funded by the Department for Transport and delivered in partnership with InnovateUK. As part of the CMDC3, the Department allocated £60m to 19 flagship projects supported by 92 UK organisations to deliver real world demonstration R&D projects in clean maritime solutions. Projects will take place in multiple locations around the UK from as far north as the Shetland Isles and as far south as Cornwall.
The CMDC3 is part of the UK Shipping Office for Reducing Emission’s (UK SHORE) flagship multi-year CMDC programme. In March 2022, the Department allocated £206m to UK SHORE, a new division within the Department for Transport focused on decarbonising the maritime sector. It is delivering a suite of interventions throughout 2022-2025 aimed at accelerating the design, manufacture and operation of UK-made clean maritime technologies.
Funded by the Interreg North Sea Europe programme, part of the European Regional Development Fund (ERDF), the WASP: Wind Assisted Ship Propulsion project has brought universities, wind-assist technology providers and ship owners together to research, trial and validate the operational performance of a selection of wind propulsion solutions.
After three and a half years, the project has generated a significant stream of much-needed information and transparency around wind propulsion technology selection, installation and operation, contributing greatly to the general development of the wind-assist sector both in the North Sea region and beyond.
The five installations of wind propulsion technology will continue to serve as examples of how wind propulsion systems can be deployed as retrofits on various different vessels. As expected, fuel savings from these systems are variable, delivering up to 10% saving depending on the route and vessel operational profile.
These installations have also contributed to the generation of three points of reference for different wind propulsion technologies and shipping segments that will support ship owners to make investment decisions going forward.
Marko Möller, manager special projects at Scandlines, one of the ship-owning companies involved in the WASP project, reflects: “We are proud to be part of this amazing project. By the WASP installations realised and evaluated during the project lifetime, wind technology proved to be an important element of the decarbonisation process of shipping.
For Scandlines, the positive results were a decisive factor to install another rotor sail on the sister ferry of the Copenhagen.”
Johan Boomsma, co-owner of Boomsma Shipping, another of the ship owning companies involved in the project says: “We believe energy efficiency is key and are always open to new developments. That is why we are sailing with the eConowind VentiFoils on mv Frisian Sea. I think the three
major factors – unit costs, fuel prices and European ETS legislation – are combining in such a way that windassisted propulsion will soon become one of the standard solutions.’’
The WASP project has also played a key role in developing standard procedures for sea trials for wind propulsion technologyequipped vessels and the creation of standards for KPI’s in collaboration with the International Towing Tank Conference (ITTC). These are significant developments that reduce the barriers for the uptake of wind propulsion solutions.
In addition to the vessel installations, the project has had a strong focus on the educational field. Twelve key educational events have been held at project partner universities along with others in Enkhuizen Maritime Academy, the Delft Technical University and the World Maritime University.
Although the project has drawn to a close, the continued use of the deliverables from the project’s four work packages will help to inform the industry and policy makers going forward.
The project has already contributed to a far better informed shipping sector in the EU when it comes to wind propulsion technologies and the North Sea region continues to be at the forefront of developments in the field.
NYK Bulkship will introduce a windassisted ship-propulsion unit on a bulk carrier engaged in a longterm charter contract with Cargill International – the first time for a unit of this type to be installed on an NYK Group vessel.
NBAtlantic will equip the bulk carrier with the VentoFoil wind-assisted propulsion unit from Econowind, a wingsail producer based in the Netherlands. This unit is expected to help reduce greenhouse gas (GHG) emissions during vessel navigation.
NBAtlantic will collect data on the propulsion generated by this equipment, in addition to meteorological and ocean conditions during navigation, and measure the
unit’s effectiveness in collaboration with Cargill International S.A.
Sitting on a 6m-long flat rack container with no walls, VentoFoil has a 16m vertical wing that plays the role of a sail. Like an airplane wing, VentoFoil creates propulsion with the pressure difference on both sides of the wing. The unit takes in wind through its suction port and obtains greater propulsion by amplifying the pressure difference. VentoFoil is smaller than similar equipment, keeping it more out of the way of cargo handling. It is also easy to install and relocate.
This initiative is part of NYK’s longterm target of net-zero emissions of ghg by 2050 for the NYK Group’s
oceangoing businesses. The NYK Group will utilise the knowledge gained in this research and development to promote initiatives related to various energysaving technologies, including the use of wind power.
In March, the NYK Group released its medium-term management plan “Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing.” It is promoting growth strategies with environmental, social and governance at the core, based on the group’s new corporate vision for 2030: “We go beyond the scope of a comprehensive global logistics enterprise to co-create value required for the future by advancing our core business and growing new ones.”
IINO Lines and Electric Power
Development have agreed to install a Norsepower rotor sail, manufactured by Norsepower on the coal carrier Yodohime
This is the world’s first use of the Norsepower rotor sail on a bulk vessel that is dedicated to coal cargoes, and the installation will take place in Q3 2024.
The Norsepower rotor sail is a modernised version of the Flettner rotor. It uses the vessel’s electric power to rotate the cylinder-shaped rotors on the deck. These rotating sails use the wind to generate powerful thrust, resulting in the reduction of fuel consumption and CO2 emissions by approximately 6-10%, in combination with the navigation optimisation system.
In partnership with bound4blue, a pioneering developer of wind-assisted propulsion technology, Odfjell will install the innovative eSAIL system on a chemical tanker, making it the first tanker vessel in the world to harness this ground-breaking technology.
Bound4blue’s eSAIL system utilises a cutting-edge wind-assisted propulsion system known as a suction sail. By promoting the use of wind power to propel vessels, this technology significantly reduces fuel consumption and pollutant emissions. Odfjell has actively pursued decarbonisation initiatives for many years, and recently documented a 51% improved carbon intensity compared with the 2008 baseline. The deployment of bound4blue’s eSAIL® system represents another significant milestone in the company’s implementation of innovative solutions to increase its fleet’s energy efficiency.
“Since 2020, we have been studying sail technologies as a potential energy efficiency measure for our fleet, and we are excited to now take the next step by partnering with bound4blue to implement their pioneering eSAIL system on one of our chemical tankers,” says Jan Opedal, projects manager at Odfjell. “This technology has significant potential to reduce
emissions by harvesting the energy on the ship itself and transforming it directly into a forward thrust.”
Odfjell’s partnership with bound4blue aims to expand access to the eSAIL® technology within the tanker shipping segment and further contribute to the industry’s efforts in decarbonisation. The decision to collaborate with bound4blue was supported by an extensive study conducted by SSPA, evaluating various wind-assisted propulsion systems for the Odfjell fleet.
“This project marks another leap in our dedication to decarbonisation. As the first tanker company to test the suction-sail technology, we demonstrate our innovative capabilities and dedication to a more sustainable shipping sector,” says Erik Hjortland, Odfjell’s vice president of technology. “We all have a responsibility to use as few resources as possible, and Odfjell’s long-time efforts in energy efficiency have significantly reduced our fleet’s emissions. The work continues, and we look forward to documenting further improvements with the installation of suction sails.”
“We are thrilled to team up with Odfjell for our first-ever installation in the tanker segment,” says David Ferrer, CTO of bound4blue. “It is a true pioneer in innovation and sustainability, setting the bar for decarbonisation in the industry. We are pleased that it has chosen our technology after its thorough analysis, confirming that we are heading in the right direction. Working with its open and collaborative team has been fantastic, and we are confident that our joint efforts will unlock significant value for the industry.”
The pioneer installation will be completed in 2024.
Responding to the UK government’s announcements that its Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) has been extended, the British Ports Association has welcomed the acknowledgment that additional time will be needed to deliver the UK’s offshore energy aspirations but suggested more funding is key to achieving these targets.
Richard Ballantyne, CEO of the BPA, which represents more than 400 ports and harbours in the UK, says: “While we certainly appreciate the government’s recognition that ports need more time to prepare and deliver projects, unfortunately this news doesn’t address the need for further funding and if anything it limits what government will actually be able to award the sector over the next few years.
“Offshore wind opportunities are vast. However, our ports are in a ‘chicken and egg’ situation waiting for various announcements on publicfunding decisions as well as on leasing awards. The ports industry is going to at the forefront of the rollout of FLOW by providing the land-side interface that offshore wind installations will require, but we do need a bit more from policymakers to make it happen.
“There are definitely some further discussions to be had on additional funding and planning easements to meet the very ambitious expected offshore wind targets and timescales.
“However it’s still an exciting time for our sector and we look forward to continued cooperation with government and across the energy industry to help the UK realise its very teal offshore wind potential.”
Bureau Veritas (BV) has awarded an Approval in Principle (AiP) to Hyundai Heavy Industries (HHI), Hyundai Global Service, TotalEnergies Gas & Power, and Mitsui OSK Lines for wind assisted ship propulsion (WASP) on a very large crude carrier (VLCC) and a liquefied natural gas (LNG) carrier.
The AiP was presented at NorShipping in Oslo in June, marking the successful completion of a joint development project (JDP) between all four companies to better understand and validate the potential for WASP on these ship types.
The JDP focused on three wind propulsion technologies, two of which were wing sails and one a rotor sail system. The principal conclusion of the project and the subsequent issuance of the AiP demonstrate that all of these systems are compatible with existing classification rules and regulations for VLCCs and LNG carriers, thereby paving the way for more detailed work to address specific risks that would enable detailed design and arrangement work to proceed.
BV actively participates in multiple WASP projects, supporting the development of innovative technologies. In March 2021, BV released an update to its rule note for Wind Propulsion Systems – NR 206. Building on pre-existing BV rules released in 1987, the rule note provides the classification requirements for modern windpowered ships.
BV Rule Note NR206 provides load cases and coefficients for all types of wind propulsion technologies, including free standing rigs, wing sails, kite sails, suction sails, and rotors.
These dedicated rules serve as the key classification framework for wind assisted propulsion. First, during the design review stage, the rules ensure the safety and proper integration of wind propulsion systems with other onboard systems. Second, throughout the vessel’s in-service life, the rules address survey regimes and maintenance requirements.
There are definitely some further discussions to be had on additional funding and planning easements to meet the very ambitious expected offshore wind targets and timescales
Norway aims to establish itself as a green powerhouse and is making efforts to expand its offshore wind capacity. However, shifting away from oil and gas is only a part of that journey. Collaboration and advances in green energy infrastructure are vital for a successful transition
Norway is at the forefront of alternative energy development. Already, 98% of all electricity produced in the North European country comes from renewable sources, with hydroelectricity responsible for the lion’s share (88.2% in 2022).
Wind power contributed another 10% and has been growing in terms of its importance for Norwegian power production.
The country aims to become a hub of offshore wind to help meet European demand for energy, and its government has announced plans to expand its infrastructure to develop 30GW of offshore wind capacity by 2040, doubling the country’s total power.
Increasingly, the attention of investors is turning to wind as turbines become more advanced. According to offshore wind consortium Brigg Vind partners, Norway’s potential for commercial offshore wind capacity could surpass 50GW by 2050.
In May last year, Norway announced 1,500 offshore wind turbines would be installed and operated off the country’s coast, to achieve its 2040 ambitions.
Investigation into newer, more efficient forms of renewable energy is now being undertaken to address the limitations of fixed turbines.
One of those limitations is environmental. While certainly a step forward from carbonemitting fuels, installing large bases or piles into the seabed to build wind turbines can still lead to ecological damage.
To overcome this limitation, Norway has been focusing on floating wind farms. Not only are they less damaging to the environment, they can also be deployed in deeper waters.
An organisation involved in this is the Marine Energy Test Centre (METCentre). Founded in 2009, it is a world-leading North Sea centre for testing new marine renewable energy technologies.
METCentre hosts a number of offshore development projects. Equinor installed the world’s very first floating wind turbine
Hywind Demo in 2009, Google Makani was tested in 2019, TetraSpar Demonstrator was installed in 2021 and the demonstration of the first 10+MW floating concept (Flagship) is in the planning. Its test area for floating offshore wind is located 10km offshore, close to the recently released Utsira Nord field.
Such efforts demonstrate a national drive to strengthen Norway’s leading position in offshore energy and develop capabilities from logistics planning and installation to operation and maintenance.
“The Norwegian coast is renowned for its high winds and deep water, which make it the ideal location to put developing systems to the test at the METCentre before being deployed on a larger scale,” says Mikael Rodseth, general manager at GAC Norway.
Heine Novda, GAC Norway’s business development manager, adds: “GAC Norway was an early member of Norwegian Offshore Wind, a specialised cluster of supply chain companies and developers for floating wind. As such, we have been involved in pre-construction surveys and installation of offshore wind turbines at the METCentre.”
Norway opened its first offshore wind tenders in March this year for the Sørlige Nordsjø II and Utsira Nord areas. Plans for the next round of licensing will take place in 2025.
However, delays in impact assessments and licensing from the Norwegian government have raised eyebrows regarding the commercial feasibility of offshore wind in the country’s energy supply.
And with European countries such as Belgium, Denmark, France, Germany and the Netherlands, as well as the UK, expanding their offshore development in the North Sea, competition has been fierce.
Developing green power requires support services beyond the construction and maintenance of wind farms. An entire logistics network is needed to support the mobilisation and demobilisation of support vessels,
which include the acquisition of necessary licenses from government agencies, assistance with procurement and facilitation of crew changes.
GAC Norway has years of experience in the country’s O&G sector.“Energy remains at the forefront of Norway’s offshore sector,” says Rodseth. “Services supporting energy projects remain the same, whether for O&G or renewables. As Norway builds local knowledge and infrastructure to support that goal, GAC is committed to draw on our experience to support the growing number of offshore wind farm projects in the coming years.”
The development of wind farm projects has been impacted by supply chain issues, inflationary challenges and knock-on effects from Covid-19.
Established players can collaborate, take action and support customers in tackling challenges involved in energy transitions.
“Travel restrictions and office closures during the pandemic forced us to become more flexible in the face of changing regulations. Ensuring that all personnel involved were vaccinated, tested and taken care of, as well ensuring that all the paperwork was in order, became part and parcel of our work,” Heine notes.
GAC’s reach and track record
across the region give it a significant advantage. Service providers and logistics stakeholders already working in offshore projects inevitably ingrain themselves into various markets.
“The world’s first-ever floating wind farm, the Hywind Scotland project, is a testament to the globalised operations these projects will have to undergo in the future,” says Heine.
“The turbines were built in Norway, towed to north-east Scotland and overseen by Norwegian firm Equinor, with support from GAC UK. Such experiences and knowledge are shared across our offices to facilitate the adoption of best practices in offshore wind development across the Group.”
Oslo’s energy plan is ambitious but achievable. An analysis by Multiconsult indicated that the Norwegian wind even has the potential to generate up to 338 GW of energy – 10 times its 2040 target.
Offshore stakeholders are already revolutionising their offshore capabilities. Floating offshore is at the heart of this, with fixed offshore wind continuing to play a role.
For Norway’s green plans to materialise, industry players need to draw from their experience, knowledge and regional networks.
International freight transport insurer TT Club is seeking to draw attention to the lifethreatening hazards caused by enclosed and confined spaces prevalent throughout the global supply chain. Toxic gases produced by some cargoes as well as leakages, residual fumigants and other causes of a reduced oxygen environment are the chief problems, with 60% of fatalities suffered by would-be rescuers.
Confined or enclosed spaces are common in the supply chain industry. Such spaces exist across all freight modalities, from tank containers to cargo hold stairwells and holds, to road tankers and sealed cargo units. A lack of understanding of the danger present may have fatal consequences.
Without sufficient oxygen, the human body starts to shut down very quickly. Any rescue operations are therefore time critical.
The primary cause of reduced oxygen levels is the increased presence of other gases, such as carbon dioxide. This may arise from rusting of the ship’s structure or metal cargoes, oxidation of cargoes such as coal
or the decomposition of biodegradable cargoes, for example fish meal, logs, bark or wood pellets.
All these lead to carbon dioxide – and potentially other gases – being released, simultaneously depleting the oxygen. Other associated hazards include flammable or toxic vapours from leaking cargoes or leaking pipes or hoses.
Peregrine Storrs-Fox, risk management director at TT, explains that a lack of awareness of these often hidden dangers is surprisingly high. “The key risk is that workers may not readily recognise spaces that could present danger,” he states. “The cargo hold of a ship is a leading example, but containers and other cargo transport units pose similar risks; there may be a lack of knowledge of the cargo packed or whether fumigants have been used. Similarly, tanks units, whether a road barrel or tank container, certainly qualify as enclosed spaces.”
The speed with which the effects of oxygen depletion can become debilitating
Insurance remains a key issue for the industry as ships carry dangerous cargoes that can be a threat to life if not properly looked after
require thorough and regular communication to ensure that operatives understand the risks. When entering a lethal space there are no obvious red flags. In terms of symptoms there are no warning signs such as coughing or feeling breathless or nauseous. An individual can pass out without having the opportunity to raise an alarm or escape.
The quick onset and catastrophic nature of these symptoms often leads to others rushing to the aid of the casualty, unaware of the reason for their collapse. Statistically, more than 60% of fatalities connected to confined and enclosed spaces are suffered by would-be rescuers.
“The silent and invisible nature of this killer emphasises the importance of raising awareness of the risk,” stresses Storrs-Fox. “Developing and undertaking drills to practice rescues are crucial steps in mitigating the risks, as are a number of other strategies including risk assessments of working in potentially hazardous spaces, discouraging short cuts in work practices and testing, monitoring and venting air in confined areas.”
While not exhaustive, TT has developed a checklist of risk mitigation strategies that can be applied across all modes, whether on land or at sea.
Voyager, the operations and demurrage management platform for bulk commodity shipping, is urging shipping companies to take a proactive stance and adopt a number of best practices in order to reduce the costs and risks of demurrage.
A dramatic surge in port congestion and associated supply chain disruptions have led to longer waiting times and higher demurrage costs, says Voyager co-founder and CEO Matthew Costello. “This issue is particularly severe in the bulk shipping sector, where demurrage costs can exceed 20% of the total freight cost for a voyage.”
“However, demurrage doesn’t have to be a substantial burden on a company’s resources. By implementing three key best practices, companies can significantly reduce
the cost of demurrage and streamline their operations.”
Voyager says companies should estimate and analyse demurrage in real-time, automate their Statement of Fact (SoF) data processing and logically analyse their charter parties.
“These changes will give your company the necessary tools to stay ahead, making informed, data-driven decisions that result in savings and greater efficiency,” said Costello.
and loss statements accurately and any claim can be anticipated in advance. This also offers dynamic opportunities for risk mitigation by coordinating with terminals and other vessels to expedite discharge and avoid unnecessary delays.
Second, Voyager recommends that companies digitise all their SoF events data, to provide granular insight throughout the loading and discharging process – invaluable in assessing the efficiency of the terminal, the berth and the discharge itself. By automating the processing of this data, companies can streamline their demurrage calculations and gain real-time insights, informing decisions related to seasonality, congestion and efficiency.
Finally, Voyager urges companies to connect charter party agreements to demurrage logic. This involves more than just transferring data fields into a database – logic should be assigned contracts and fields, so that it can be understood how specific clauses in a contract are impacting demurrage claims. For example, there may be particular clauses that incur more cost at a certain berth or port. Analysis of the charterparty enables dynamic optimisation of contracts across the company, which can highlight areas of potential savings based on datadriven decisions.
According to Voyager, many businesses make the mistake of calculating laytime and estimating demurrage claims only after they receive a claim from the shipowner – leaving no room for adjustment. Instead, companies should take a proactive stance; by estimating and analysing demurrage immediately after the first load port, they can gain a realtime assessment of their demurrage risk at every stage.
By taking into account historical factors such as waiting times, congestion and lineups, operators can gain a realistic estimate of the demurrage risk for the entire voyage; these costs can be allocated to profit
Voyager Portal views demurrage as an opportunity for businesses to alleviate the impact of port congestion, improve and tighten up contract weaknesses and drive overall business improvement, says Voyager co-founder and COO Bret Smart.
“Demurrage costs due to inefficiencies eventually get passed on to the customers, creating a situation where no one wins. Proactive management and intelligent data utilisation are the keys to unlocking significant business improvement,” he says.
“Ultimately, automating document processing and laytime calculations can free up valuable time for demurrage teams, with up to 50% of time savings. The time freed up can be used by analysts to go back to contracts and review clauses to identify other savings opportunities.”
Implementing three key best practices, companies can significantly reduce the cost of demurrage and streamline their operations
Sponsors
THEONLY EVENTAIMED AT THE ENTIREBULK
OFFERING PRACTICAL SOLUTIONS SESSIONS WILL COVER
An in-depth sector by sector market analysis
Streamlining operations and increasing efficiency
Digitalisation and cyber risk
Improving stevedore safety
Ensuring environmental protection and compliance
Legal questions
How equipment and service providers can provide solutions to terminal operators’ needs
To discuss speaking and sponsorship opportunities please call Simon Gutteridge +33 (0)321 47 72 19 or email events@bulkterminals.org
Host port and local organiser
