CSI Winter 2023 by Maritime-AMC

WINTER 2023

COLD COMFORT

Alternative fuels to suit all seasons

TRADING PLACES

An in-depth look at what the EU ETS means for the industry

JOINT EFFORTS

The partnerships giving a high-tech boost to shipping

supporting Clean Shipping initiatives

Marine Emissions Monitoring and Testing Service Protea manufacture the equipment and supply qualified engineers to carry out the on board testing. Emissions Testing using the latest Protea Transportable FTIR

Approvals UK Maritime and Coastguard Agency

Certificate of Design Assessment Protea P2000

European Commission Directive 2008/67/EC of 30th

• Know your ship gaseous emissions • Verify your continous emission monitoring system • Verify your Exhaust Gas Cleaning Systems (EGCS) performance • Data contributes to engine efficiency checks • Emissions Testing

June 2008, amending Council Directive 96/98/EC on marine equipment (4th Amendment) Annex 2, A2/2.1-

RINA Rules for the Classification of Ships - Part C “Machinery,

On board NOx monitoring and recording devices, MARPOL 73/78 Annex VI regulation 13 and the NOx Technical Code.

Res. MEPC.259(68) Chapter 6 “Emission Testing” as well as the relevant requirements of Revised MARPOL Annex VI and NOx Technical Code 2008.

ATEX Protea P2000

Lloyd’s Register - Type Approval Certificate Protea P2000

Certficate Number: Baseefa 18 ATEX 0060X Markings: II 2 G Exdb IIBT* Gb

Sub-Brand

T6 Ta -20˚C – +40˚C

Sub-Brand Sub-Brand Sub-Brand

LR Rules & Regulations for the classification of ships

T4 Ta -20˚C – +60˚C

Advanced Advanced AdvancedEmissions Emissions EmissionsMonitoring Monitoring Monitoring

Systems and Fire Protection”, Chapter 3, Section 6, Tab.1 and IMO

(July 2014) LR Test Spec No.1

IEC Protea P2000 (2015) Advanced Emissions Monitoring

Continuous Emission Monitoring System Stack Stack Stack Gas Gas Gas

Certificate Number: IECEx BAS 18.0040x

IMO Resolution MEPC 184(59) - 2009 Guidelines for exhaust gas cleaning systems

Markings: Ex db IIB T*Gb

Stack Gas

T6 Ta - 20˚C – +40˚C

IMO NOx Technical Code (2008)

T4 Ta -20˚C – +60˚C

International Association of Classification Societies

Analyser Analyser Analyser

ACWn forfor ACWn ACWn for Protea Analyser windows windows windows Control Unit

AnalyserConcerning Electrical Installations IACS E10 Test Specification for Type Approval and relevant IEC 60945

MCERTS Protea P2000 MCERTS Performance Standards for Continuous Emission Monitoring Systems Product Conformity Certificate No: Sira MC 050060/12

ACWn for windows Mains Mains Mains Instrument Air Instrument Instrument Air Air (Zero) (Zero) (Zero) European European European US USEPA US EPAEPA EN14181 EN14181 EN14181 4040CFR CFR 40 CFR QAL QALQAL 33 3 Part Part60 Part 60&&60 7575& 75 Compliant Compliant Compliant Compliant Compliant Compliant

Span Gas Span Span Gas Gas

Telephone: +44 (0)1270 872000 Email: sales@protea.ltd.uk Mains Website: www.protea.ltd.uk

ATEX ATEX ATEX

Instrument Air (Zero)

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FROM THE EDITOR

CRUNCH TIME IS COMING

Sandra Speares Editor, Clean Shipping International

Forward planning will be the name of the game for the maritime industry as new rules come into play. Operators face increasing costs if they don’t comply with regulations, whether these are locally applied or across the whole trading segment. EU Emissions Trading System (ETS) regulations are set to come into force from next year and the focus will only increase on those operations that do not meet the requirements. How much room for manoeuvre there will be for companies going forward remains to be seen, but regulators are keen to push the message that there will be no hiding place for those who try to circumvent the system. It’s not yet clear to what extent the tick-box mentality will apply to future operations as far as emissions are concerned, but the feeling is this may be crunch time for those operations that do not meet requirements. Given the demands of new legislation, it is interesting to note that some observers say that this will encourage operators to use bigger ships or younger fleets that meet the new emissions requirements. Whether or not this trend will result in a rationalisation of fleet sizes in the future remains to be seen. Other issues relating to the carbon debate include ensuring that activities on land or at sea are completed in the most efficient way possible to ensure financial savings, at a time when operators may be facing additional costs relating to compliance with new environmental measures. Operational transparency is also an important element, not only to provide compliance with new rules and regulations affecting the industry, but also to weed out bad practices and use manpower and resources in the most effective way possible. Many of the trade organisations in the industry, as well as companies that have joined forces to explore different solutions, are at the forefront of solving environmental challenges faced by the industry. There are certainly plenty of initiatives to encourage greater safety, efficiency and better working practices. This edition of Clean Shipping International includes some of the most recent, as well as viewpoints giving different market players’ takes on current developments. As many market observers will agree, it is important to learn from the past and not repeat its mistakes if possible. It is also important to weigh up the advantages of a course of action, whether from a safety or environmental perspective to ensure that best practice is not lost when seeking to apply new bits of regulation. We hope you enjoy reading all about the latest developments.

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

Your Trusted Partner

The Maritime Association Management Company (Maritime AMC) provides comprehensive secretariat services for trade associations operating across all sectors of the global maritime and offshore industries. When it comes to entrusting the management of your association to a specialist services provider, we are your ideal partner. Whether your association is a fledgling or established entity, Maritime AMC has the expertise to ensure growth, develop your association and influence regulatory and media agendas on behalf of your membership. Our directors have extensive maritime industry and trade association expertise, with demonstrable successes in association governance, publishing, conference production and communications. We speak your language and understand the maritime world. Maritime AMC currently provides full secretariat services to the Association of Bulk Terminal Operators (ABTO) and previously to the Clean Shipping Alliance 2020 (CSA 2020).

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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

cleanshippinginternational.com

THE SIMPLE SOLUTION TO A GLOBAL CHALLENGE 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, supervision, and provision of 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, high-quality product with first-rate EGCS design and performance, and low operational expenditure.

GLOBAL SERVICE AND SUPPORT 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.

ONBOARD CARBON CAPTURE To help combat climate change we are committed to continuously optimizing our systems and investing in research and development of new technologies within the fields of carbon capture and power-to-x.

WWW.PURETEQ.COM

FROM THE EDITOR

Sandra Speares on why forward planning is key as now rules come into place

In the search for environmentally friendly solutions for propulsion, wind power is an age-old solution with state-of-the-art capabilities

WELCOME

Don Gregory, Director, Exhaust Gas Cleaning Systems Association

» p14

efficiency, reduce errors, save money and reduce emissions

47 » p20

a prestigious award

» p36

A host of collaborations and new initiatives are making design and performance

MARINE COATINGS

Antifouling is an effective method of improving vessel performance and safeguarding the environment

SHIP DESIGN AND EFFICIENCY

a major impact on ship

An innovative wind-powered cargo vessel includes sustainable chemical-free treatment technologies in its bwts

How one company’s led to recognition with

ALTERNATIVE FUELS

BALLAST WATER

DECARBONISATION

decarbonisation efforts

The industry is heading towards net zero with a number of new innovations, and partnerships put greener fuels in the spotlight

TECHNOLOGY

developments to improve

EGCS

Working with other experienced market players is vital when considering retrofits to meet the new environmental requirements

The latest technological

NEWS ROUND-UP

All the latest news and views from across the globe

WIND POWER

REGULATION

The shipping industry is facing many regulatory challenges, » p51

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

including the implementation of the EU Emissions Trading Scheme

WELCOME

EVIDENCE AND THE PRECAUTIONARY APPROACH

Don Gregory Director, Exhaust Gas Cleaning Systems Association

As 2023 draws to a close, it seems that the only bright spot in the coming weeks is that my dispersed daughters will be coming together for our family Christmas lunch at one of the daughter’s homes. As with all of us, I tell my girls to take care, drive safely and be aware to hazards on the road. Often accidents are the result of other road users’ errors or poor driving. We will all, of course, dread the thought of receiving tragic news. Life does involve risk. I would hope all of us think about risk and do our very best to be aware and manage the risks we face. Why is this relevant to this welcome article in Clean Shipping? In the UK as this article is being written, an enquiry is being conducted into lessons to be learned from the UK government’s handling of the covid-19 pandemic. All involved in the decisionmaking, from politicians and civil servants to professionals, will have been interviewed to understand their perspectives, their actions, and justifications. One gentleman, Chief Medical Officer Professor Chris Whitty, described the exceedingly difficult decisions that had to be made. In his role with a team of colleagues, he had to advise the prime minister and others who ultimately made the action decisions for the nation. Professor Whitty made a number of very interesting statements and observations that appear to be relevant to some of the information and decision-making that occurs at the International Maritime Organization (IMO). It is also worth noting that the main decision-making, in fact all decision-making at IMO is by administration representatives. These people are effectively and, in most cases, employed by the state and are servants to the state. In the UK, we call our men and women in executive posts in government civil servants. These are welleducated people who should be conversant

with the principles of accepting evidence, giving advice and using principles, such as one that Professor Whitty highlighted: the “precautionary principle”. I shall return to this principle. There is a document being processed through IMO that purports to give guidance to administrations to ensure uniform and consistent application of controls on the discharge of water from open loop scrubbers. This document proposed and being steered by the EU Commission is, in fact, in contradiction to MARPOL Annex VI, in which signatories accept the use of alternative means of compliance for the regulations contained in the Annex VI. In respect of Regulation 14, there is as of 1 January 2020, a regional and global limit on the content of sulphur in marine fuel, 0.10%S and 0.50%S respectively. An alternative compliance method is the use of exhaust gas cleaning systems, of which wet gas washing using open loop scrubbers is the ubiquitous technology. That technology has been accompanied by several in-depth environmental impact assessments with respect to the discharge water that has been used to clean the exhaust gases. Sampling and analysis undertaken in an Environmental Impact Assessment has been presented to IMO and led to the setting of limits on certain measurable parameters in the discharge water. It is worth noting that the application of wet scrubbing is not something new or novel. The facts are that the technology has been used widely in power stations and refineries around the world where access to river or sea water provided an inexpensive and sustainable means to limit emissions of sulphur oxides and other gases. On ships, wet scrubbers have been used for more than 50 years, burning marine diesel to high sulphur fuel oils to provide inert gas for headspace blankets on all types of tankers. These inert gas systems would normally be operated in port to provide the inert gas.

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

WELCOME

So, we have a history of wet gas scrubbing technology applications on ships and ashore and we have several new applications of the technology for controlling sulphur oxide and nitrogen oxide emissions. There has not been a single reported measurable significant environmental impact from the operation of the technologies. One wonders, then, why the EU Commission has decided to put valuable resources and IMO time into creating a document that seeks to advise administrations on a consistent approach to controlling and potentially banning the operation of scrubbers in ports. The reason that was put forwarded by the EU Commission was that some ports and administrations had already applied restrictions on open loop scrubber operations. In those cases, the administrations have unfortunately failed in their obligations to IMO to apply MARPOL Annex VI Regulation 4 and in all cases without any significant evidence to support their policy to apply bans. It seems pointless for nations to gather at IMO and agree treaties and protocols to then simply ignore their commitments and take unilateral and unjustified actions. Returning to the many interesting points raised by Professor Whitty, one of note was what he said is the complete misunderstanding and misapplication of the precautionary principle. This is something every civil servant worth their salt should understand. A perhaps obvious way to contain the covid-19 pandemic and avoid overwhelming the health service was to lockdown all movement of people with immediate effect. So, the precautionary principle would be to “go early and go hard”. But such an approach could have dire consequences, which would in the case of the pandemic certainly have more serious consequences than managing the health service risk in a more measured ways. Professor Whitty said that this is not an appropriate understanding the precautionary principle. He gave an example of a doctor who tells the patient that you must have an

operation. The doctor is convinced that the operation is essential, but does not describe the risks and needs of the operation to the patient. This is clearly unacceptable and does not enable the patient to weigh up the risks and benefits. Professor Whitty went on to say that the precautionary principle is only really useful when there is no downside. He gave an example of hand washing. It is good practise and it really has no downside so implementing such a policy makes sense. The precautionary principle should not be mis-used to suggest or imply necessary actions when the risks and benefits have not been considered. This is a serious error and omission in the guidelines that have been presented to IMO by the EU Commission who have promoted the precautionary principle in such a way that it implies, “if in doubt or if uncertain or if gaining the evidence to identify harm is too difficult or costly, then just simply ban scrubbers”. The EU Commission is effectively encouraging the implementation of scrubber bans based perhaps on the current water quality in the proposed ban area, where exceedances may be occurring due to other factors and simply stopping scrubber discharge from contributing to a problem caused by others. The suggestion is to ban discharges without requiring a fully rounded assessment of the implications of such a ban. The truth is that there are many downsides to taking the precautionary approach proposed by the EU Commission. They include precluding much-needed scrubber technology development for cleaning gases prior to carbon capture. It is estimated that onboard carbon capture could be a short term measure that is quick to implement and results in between a 20% and 40% reduction in CO2 emissions when using fossil fuels. There is evidence recently reported that ultra fine particles in exhaust gases of low sulphur fuels appear to react more severely with human tissue than scrubbed gases from high sulphur fuel. But there is advanced

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

wet scrubber technology that could pretty much eliminate these particles and have emissions reductions performance exceeding the current on road EU standards of Euro 6. Then there is the cost-of-living crisis. Increasing the cost of transport has had a massive effect on the cost of living for many people. I recently heard that in northern parts of Canada people were paying 20% to 50% more for their essential living needs than their neighbours in southern parts simply due to the increased cost of transport. Getting back to the covid-19 analogy and immediate lockdown option. This was not a precautionary approach at all. It had been misunderstood and was potentially going to be misapplied. What happened instead was to look at the mitigation actions that could reduce the load on the health service balanced with protecting the nations people. The EU Commission guidelines do not seem to allow for mitigation in any respect. The logical scientific and engineering approach driven by evidence would be to understand the cause and effect and then rein in the cause. Washing exhaust gases is not in itself a problem just as lockdown in itself is not a problem. But the consequent collapse of the economic and social system is a serious risk. It would be logical that if scrubber discharge water from open loops scrubbers is identified to create hazards, then the first step would be to limit the discharge of those components identified as harmful. To date there has been no such identification nor has there been concerns raised of measured harm resulting from open loop scrubber operations. Looking forward to 2024, we need to consider and be aware of the risks we face and the globe faces and take sensible and well-evaluated steps to mitigate those risks. With that in mind, I would like to wish all of you with holidays and festivities to look forward to and those who have to continue working during December a happy and safe time. Wishing all of you good fortune and health in 2024.

NEWS

The shipping industry is putting net zero and energy efficiency, firmly in the spotlight

GLOBAL NEWS ROUND-UP A new report has given industries a roadmap to save 11% of global emissions by 2030 while saving $437bn along the way. The report, The Case for Industrial Energy Efficiency published by the Energy Efficiency Movement (EEM), outlines 10 key actions that do not require new technologies or policy decisions, but promise to save emissions. The 10 key actions, the report says, could be put into practice today to reduce carbon emissions, and almost half of the emissions savings could be achieved by 2025. The actions are divided into three pillars: building an efficiency foundation; driving efficiency returns; and gaining efficiency insights. Each action has been individually quantified in terms of carbon savings and financial benefits. “Energy efficiency is crucial for meeting the Paris Agreement on time and the industry plays a major role in making it happen. There is an urgent need for immediate response and action, and this EEM report visualises key actions to save energy and reduce emissions

already today,” says Thomas Møller, president of energy division, Alfa Laval, which contributed to the report. One example of its contribution concerns energy efficient heat exchangers. Heat exchangers are used widely across the commercial and industrial sectors, in areas such as building heating and air conditioning, refrigeration, and data centre and fuel cell cooling, yet they are rarely maintained adequately. On this action, the report states that up to 2.5% of global carbon emissions can be saved just by maintaining and regularly servicing heat exchangers. New heat exchangers can be up to 25% more efficient than old ones. The replacement of obsolete heat exchangers in industrial and commercial settings could save between 136 and 339 MtCO2 a year. The Energy Efficiency Movement joins stakeholders together across many sectors and Alfa Laval has been an active member since the start. “This is our contribution to the upcoming COP28 discussions that will be looking at solutions on net zero targets. The

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

NEWS

IEA has said that net zero will require a doubling of the rate of progress on efficiency and a tripling in annual efficiency-related investment. To that end, we are furnishing executives with data and insights to help build their companies’ business cases for energy efficiency improvements,” says Mike Umiker, managing director, Energy Efficiency Movement. “The report demonstrates how investments in efficiency can serve as a valuable hedge against energy and carbon price volatility, while making a true, needle-moving impact on emissions. Energy efficiency is industry’s biggest emissions ally this decade.”

COST TRANSPARENCY

The global shipping industry currently faces a transformative shift, driven by environmental concerns and stakeholder demands for the industry to adopt sustainable practices across all operations. Port agencies can play a pivotal role in ensuring smooth operations for shipping companies. When tendering, transparency of cost estimation can drive sustainable practices while opening doors to commercial opportunities. Jason Berman, CCO at S5 Agency World, has been taking a look into the importance of cost transparency in port agencies, exploring how it fosters sustainable practices, enhances trust, and streamlines operations in the maritime sector.

“The imperative for change within the shipping industry stems from its environmental impact and the growing need for accountability. Shipping industry stakeholders, particularly cargo owners, have called for the industry to reform to not only reduce greenhouse gas emissions but also create commercial opportunities that go hand-in-hand with sustainability. Digital technology simplifies how port agencies perform their essential role in the shipping industry, by fostering better collaboration and communication between carriers, terminals, and service providers. “Operators rely on port agents, with their knowledge in the local market and relationships with local suppliers, to deliver seamless port calls. Transparent cost structures, outline the price of the goods or services supplied, provide clarity on other elements of the quote essential part of the port agent’s own service and can specify the quality, availability and delivery times of products or services. “Such clarity helps each party understand financial aspects without hidden surprises or unexpected expenses, and can empower ship operators to make informed decisions, reducing delays and costs. “Transparent cost quoting, along with responsiveness to client inquiries, fosters trust and helps to build trust and strengthen long-term relationships that can deliver more sustainable

results for cargo carriers and terminal operators. “Although time and cost savings during a single port call may seem marginal, when accumulated across a fleet over a year, they result in substantial savings, including reduced fuel consumption and emissions, and promoting a more sustainable business. “Transparent costing involves accurate and unambiguous quotes, providing a clear breakdown of expenses related to port agency services. Such transparency builds trust, leading to long-term relationships. “These long-term partnerships facilitate better understanding and enhance collaborative efforts to deliver sustainable practices. Transparent cost structures make it easier for cargo carriers to compare of quotes and manage budgets. Simplified negotiations over clear costs lead to more sustainable and responsible operations. “Digitalisation is as a catalyst for transparent practices in port agencies facilitating seamless communication ensuring information is accessible to all the relevant parties and enabling more sustainable just-in-time delivery of port services. By creating resilience, digital systems reduce the likelihood of disruptions during port calls and enable identification of missing information to prevent cost surprises. “Port agents can help bulk carriers and terminal ecosphere operate more sustainably by facilitating smoother port calls. Price transparency is a key part that builds trust between partners and create efficient, sustainable operations and commercial opportunities.”

“Industry reform will not only reduce greenhouse gas emissions, but also create commercial opportunities”

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

NET-ZERO GOALS

In a time of unprecedented environmental and economic challenges, a white paper has been unveiled by PortXchange, the tech start-up decarbonising shipping through digitalisation. The white paper serves as a roadmap for immediate maritime action and presents hard evidence that just-in-time (JIT) port arrivals is an environmental and economical solution that must not be ignored if netzero emissions goals in the maritime industry are to be reached by 2050. The field trials conducted by PortXchange prove that JIT Port Arrivals could reduce global container shipping emissions by at least 5%, translating to approximately 17m tonnes of CO2 emissions annually. The empirical data shows that this is an achievable and affordable operational reality through PortXchange’s Synchronizer technology, which helps carriers optimse their speed during the voyage based on real-time berth availability. The paper identifies ports where JIT port arrivals could stand to have

NEWS

the biggest gains. These include Buenos Aires, Moin, Valencia, and Tanger Med. Here it was shown that vessels operated by major carriers like Maersk and MSC had significant untapped potential for JIT port arrival benefits. Case studies, such as the example of a vessel travelling from Genova to Valencia, are highlighted in the white paper and underscore the immediacy of these benefits. Had the JIT port arrival recommendations been heeded, the shipowners could have saved approximately 15.85 tonnes of fuel, avoiding unnecessary emissions equivalent to 50.11 tonnes of CO2. Abhishek Nair, business development director of PortXchange, states: “Our white paper is a call for collective action, extending an invitation to governments and regulatory bodies to recognise and leverage JIT technologies to fast-track global environmental goals. “There is no excuse. The technology to achieve dramatic CO2 reductions in the maritime industry is at our fingertips and with PortXchange Synchronizer, ports can be set up and ready to go within weeks.”

Ports that serve ships on a firstcome-first-served basis are causing an adverse carbon footprint through planning disruptions. JIT port arrivals, facilitated by PortXchange, are a quick-to-implement and low-cost solution for predictable, efficient and sustainable shipping.

“There is no excuse. The technology to achieve dramatic CO2 reductions in the maritime industry is at our fingertips”

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

NEWS

BRITISH STEEL BOOST

British Steel has unveiled ambitious plans for the biggest transformation in its history – a £1.25bn proposal to become a clean, green and sustainable business by adopting electric arc furnace steelmaking. Following detailed analysis of its current operations, available technology and challenging market conditions, the company is proposing to accelerate its decarbonisation programme. The proposals, which are subject to appropriate support from the UK government, could see British Steel install two electric arc furnaces (EAFs) – the first at its headquarters in Scunthorpe, the second at its manufacturing site in Teesside. The new furnaces could be operational by late 2025 and would replace the aging iron and steelmaking operations in Scunthorpe, which are responsible for the vast majority of the company’s CO2 emissions. The company proposes

maintaining current operations until a transition to electric arc steelmaking. British Steel has started preliminary talks with trade unions about electrification, and has promised to support employees affected by the decarbonisation plans. It has agreed for its proposals to be reviewed by an external specialist on behalf of the trade unions. The company is also working with North Lincolnshire Council on a masterplan to attract new businesses and jobs to the Scunthorpe site, parts of which could become vacant if the proposals go ahead. British Steel CEO and President, Xijun Cao, says: “Decarbonisation is a major challenge for our business, but we are committed to manufacturing the home-made, low-embedded carbon steel the UK needs. “We have engaged extensively with the public and private sector to understand the feasibility of producing net-zero steel with our current blast furnace operations. However,

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

thorough analysis shows this is not viable. “Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future. It would also ensure we can provide our customers with the steel they require.

“We are committed to manufacturing the home-made, low-embedded carbon steel the UK needs“

COMPANY PROFILE

PURETEQ: COSTCOMPETITIVE PRODUCTION OF MARITIME SCRUBBERS In the heart of China’s bustling shipbuilding, a fierce competition is unfolding in the form of a price war over scrubbers for the newbuild market. As global regulations tighten to curb emissions from shipping vessels, the demand for exhaust gas cleaning systems (EGCS), commonly known as scrubbers, has increased. Chinese shipyards, recognising the lucrative potential of this market, have engaged in a battle to offer the most competitive prices to shipowners. This price war has led to an outbreak of innovation, efficiency improvements, and cost-cutting measures among Chinese shipyards. Shipowners are now presented with a plethora of options, ranging from open-loop and closed-loop systems to hybrid solutions, each promising compliance with stringent emission standards. The intense competition is not only reshaping the pricing landscape, but also fostering a wave of technological

advancements. Shipyards are investing heavily in research and development to enhance the performance and environmental credentials of their scrubber systems. This focus on innovation is positioning Chinese shipyards as key players in the global race for sustainable maritime solutions. However, the price war is not without challenges. Quality concerns, warranty issues and long-term service support have become crucial factors for shipowners when selecting a scrubber supplier. As the battle unfolds, shipyards are not only emphasising competitive pricing, but also underlining their commitment to delivering reliable, high-quality scrubber systems that meet international standards.

JOINING FORCES TO JOIN THE GLOBAL RACE

To join the global race for sustainable maritime solutions, PureteQ A/S and China Shipbuilding Power Engineering

Institute (CSPI) have joined forces to produce low-cost scrubbers while maintaining a highquality product and outstanding energy performance. The collaboration between the two leading EGCS specialists, PureteQ and CSPI, raises the bar for the production of scrubbers on the Chinese market.

THE BEST OF TWO WORLDS

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.

A SIMPLE SOLUTION TO A GLOBAL CHALLENGE Meeting in Shanghai between CSPI and PureteQ at CSSC headquarters. From left: Jasson Huang, sales manager PureteQ China; Anders N Jensen, CTO PureteQ Group; Anders Skibdal, CEO PureteQ Group; Zhang Jiguang, executive director CSPI; Kevin Gao, sales director CSPI; Tony Deng key account director CSPI

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

COMPANY PROFILE

GLOBAL SERVICE AND SUPPORT

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. We offer tailormade 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 incl. access to our webbased Scrubber Performance Optimization Tool (Pure-SPOT) » Calibration and sensor replacement program » 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

ONBOARD CARBON CAPTURE

In the midst of this dynamic environment, the ongoing price war on scrubbers in Chinese shipyards is reshaping the maritime industry, driving innovation, and setting the stage for a cleaner and more sustainable future at sea. As the competition intensifies, shipowners and industry observers await the next wave of advancements. At PureteQ Group we are committed to continuously optimise our systems and invest in research and development of new technologies within the fields of carbon capture and power-to-x. PureteQ Maritime Scrubbers therefore now come as onboard carbon-capture-ready. We have developed and patented a sustainable technology that combines carbon capture and parallel production of hydrogen, solely based on green electrical power with no thermal heat requirement. The technology is unique in its approach to carbon capture, merging two operations in one circular process that converts flue gas or exhaust gas into storable and transportable forms of energy or fuels. Our test plant has been running for three years catching CO2 from biogasfired marine gensets and this year

China State Shipbuilding Corporation headquarters.

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

we are investing in a near-industrial size demonstration plant that is to be commissioned in the first two quarters of 2024. We intend to apply this technology to the maritime industry once there is an infrastructure to support it.

ABOUT

PureteQ A/S – A subsidiary of PureteQ Group, it is an international engineering company that specialises in service, design, production and installation of high-tech maritime EGCS - 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 is the R&D 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

PureteQ U-Type maritime scrubber system

EXHAUST GAS CLEANING SYSTEMS

Working with other experienced market players is vital when considering retrofits to meet the new environmental requirements

BACK TO THE FUTURE To enhance its service to customers, Newport Shipping has linked up with ZEME, a key player in the retrofit technology forum. Newport Shipping has signed a letter of intent (LOI) with Zhejiang Energy Marine Environmental Technology (ZEME), part of Zhejiang Energy Group, that will broaden Newport Shipping’s offering in environmental solutions. As a leading state-owned energy enterprise in China, Zhejiang Energy Group has consistently placed emphasis on environmentally friendly and low-carbon development. ZEME developments are environmental solutions such as scrubbers and methanol and alternative marine power (AMP). The LOI sets out an agreement with Newport Shipping to help it develop sales base leads. Newport Shipping will provide its full project management service and access to its 16 partner yards across the globe for projects and in turn help ZEME grow its own

market outside of China, whileproviding ZEME’s environmental solutions to its clients. As shipowners look to cut emissions one of the offerings that will be of particular interest will be the AMP that will help vessels meet with requirements for docking in all European ports, which require vessels to be connected to shore-based power whilethey are in port. Lianghui Xia, managing director, Newport Shipping comments: “We are excited to join forces with ZEME. It already has a strong presence among reputable shipowners. Newport Shipping is well-known for its extensive service expertise and global yard network. The strategic co-operation between the two companies can greatly expand the service range for our existing and new clients. We have a good working knowledge of how ZEME works and the reputation of the business.” As part of its offer of green tech solutions to the market ZEME also produces

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EXHAUST GAS CLEANING SYSTEMS

scrubbers. Adding to this Newport Shipping offers a scrubber retrofit solution to its customers. ZEME has an aggressive growth strategy with more than 450 scrubbers sold to major maritime players over the past five years. Last year, ZEME took about 25% share of scrubber retrofitting projects completed around the globe. Teaming up with Newport Shipping, the companies see that it will be a growth market for the future. Methanol is also another offering that Newport Shipping will be exploring with ZEME. Already the Chinese-based energy solution provider is seeing increased interest in the fuel along with its other solutions. On the growth of methanol as a potential future fuel, Lianghui Xia notes: “Methanol is now getting popular in China and also around the world.” Juan Wang, deputy general manager at ZEME comments: “It is ZEME’s ambition to be a global market leader when it comes to providing solutions for decarbonisation of the shipping industry. Having a strategic partner like Newport Shipping will enable us to greatly extend our market reach and scale up our service offerings towards a wider range of client base.” Overall, the agreement will help build and expand upon the businesses while collaborating and sharing services that will be beneficial for the shipping market that is looking to operate more environmentally friendly vessels both now and in the future.

“Favourable economics towards scrubbers create a strong case for implementing a retrofit strategy”

SPOTLIGHT ON SCRUBBERS

Exhaust gas abatement systems have moved beyond sulphur oxide (SOx),modernising into a platform from which multiple technologies work in tandem in the stack, including tackling CO2 with carbon capture and storage (CCS)-ready scrubbers and fully integrated CCS units in future, Wärtsilä exhaust treatment’s director, sales Kashif Javaid said in a recent article. He shares insight on the current scrubber retrofit landscape and its position in shipping’s decarbonisation trajectory. “As the shipping industry continues to strive to balance compliance with profitability – while at the same time as intensified pressure on improving sustainability – it is critical to also ensure that existing ships are dealt with properly on the path to decarbonisation. “It will be too expensive and logistically unfeasible to recycle and replace the current merchant fleet wholesale, and many vessels built 10 years ago may have to last through to 2035 or possibly beyond, dealing with considerable regulatory change in the interim period. “Instead of replacing these vessels, adopting proven technology makes it possible for the existing fleet to avoid an early grave and remain seaborne for years. Yet, to remain competitive, now is the time to invest as hesitation could be costly. “Favourable economics towards scrubbers create a strong case for implementing a retrofit strategy. As has been well documented, ship owners who invested in scrubbers prior to the 2020 Global Sulphur Cap are enjoying a competitive advantage.

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“There are few signs that this will abate, with payback models demonstrating currently that returns can be made in months, which creates a huge driver for continual uptake of exhaust gas abatement solutions. “Given the ongoing macroeconomic volatility and widening spread between prices of high and low sulphur fuels, the financial benefits are here to stay for the foreseeable future. Add to the mix the cost of new, reduced density, low-carbon, alternative fuels and the benefits of scrubbing look set to remains for decades. “Beyond tackling SOx, scrubbers have now become a platform from which multiple technologies are working together in the stack and throughout the exhaust chain. This includes tackling nitrogen oxide emissions by adding selective catalytic reduction systems or exhaust gas recirculation systems to ensure compliance with MARPOL Tier III requirements. In addition, scrubbers can reduce particulate matter 2.5 levels below even standard land-based requirements and a filter can be applied to capture microplastics. Most excitingly, scrubbers can now provide the basis of carbon capture and storage systems – underlining the modern scrubber’s position as a multiuse technology platform. With the International Maritime Organisation’s CO2 reduction timelines set for 2030 and 2050, and the European Union’s ETS putting a price on CO2 from ships from 2024, lowcarbon alternative fuels will represent only a small single digit fraction of the global fleet’s fuel of choice over the next decade.”

EXHAUST GAS CLEANING SYSTEMS: VIEWPOINT

The scrubber market is experiencing a resurgence due to uncertainties surrounding the availability of green fuel

Deck house, where sensitive equipment and outdoor scrubber tower are placed

SCRUBBER MARKET GAINS MOMENTUM Predicting the type of fuel that will power ships has become nearly impossible, leading renowned shipowners to seek secure capacities. However, only a fraction of the needed capacity appears to be available in the foreseeable future. In the interim, ships must prioritise securing their seaborn logistics. Taking advantage of the competitive situation in the scrubber market is MT Maritime and MTM Shipmanagement. The company successfully installed and seatrialled the company’s very first scrubber system at Chengxi Shipyard in China under the stewardship of the shipowner’s representative and technical director Prashant Lokhande. The hybrid-ready scrubber system was provided by Danish scrubber maker PureteQ. The MTM New Orleans was the first of two vessels to undergo scrubber retrofitting, with the scrubber system’s sea trial taking place on the maiden commercial journey to Indonesia. The scrubber system has been issued a type approval certificate from Class for its

automated control and monitoring systems reducing the need for human intervention to the bare minimum. The MTM New York is next in line for a hybrid-ready scrubber, scheduled for retrofitting at Chengxi Shipyard in December 2023. Lokhande, managing this pilot project, recommended PureteQ as the scrubber system maker and project partner based on several crucial selection criteria. The system had to be optimised for fast installation to minimise shipyard time, be the most energy-efficient on the market, possess an advanced control system with real-time remote access and onboard analytics, requiring minimum changes to the existing vessel structure, and offer professional and cost-effective service and spares throughout the asset’s lifespan. Quality was paramount, considering a scrubber being a significant investment meant to outlast the vessel. The system design needed to be suitable for upgrade to a hybrid/closed-loop system to meet more stringent legislations expected in the future.

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EXHAUST GAS CLEANING SYSTEMS: VIEWPOINT

“It is early days. Assessment needs more time in service. However, the first scrubber system is performing as intended, and operations have been trouble-free during its first voyage post installation from Indonesia to Brazil. While a few glitches did occur during installation, commissioning and final certification post commissioning went well, overall, owner’s choice of PureteQ as makers, has proven satisfactory”, states Lokhande Anders Skibdal, CEO of PureteQ, expressed pride in being selected by MTM Shipmanagement and looks forward to the next retrofit. “We look forward to collaborating with MTM Shipmanagement in the future, not least to help them increase their ships’ energy efficiency and thereby minimise their carbon footprint,” Skibdal said.

The MTM New Orleans was the first of two vessels at MTM Shipmanagement to undergo scrubber retrofitting

MTM Shipmanagement has successfully installed and sea-trialed their first scrubber system

“Operations have been troublefree during its first voyage post installation”

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Hybrid-ready outdoor U-type scrubber system provided by the Danish scrubber maker PureteQ

COMPANY PROFILE

ECOSPRAY: CARBON CAPTURE COMES UNDER THE MICROSCOPE As carbon capture is currently the subject of extensive discussion, numerous methods for mitigating the effects of global warming are being evaluated by the maritime community. In order to reach the goals set by international bodies such as the International Maritime Organization and the EU, it is imperative to be able to count on technologies that are immediately available and deployable that facilitate the shipowners’ transition to renewable fuels and energy sources. Technologies for CO2 capture could be the required solution that, already being available, can bridge the gap between the shipowner and carbon neutrality. Recognising the impending need for viable and immediate solutions, Ecospray started studying three different technologies for carbon capture in 2020. Two of them are based on chemical absorption, while the third one uses a particular type of fuel cell, molten carbonate fuel cells (MCFC), to concentrate the CO2 that is taken from the exhaust gas that is fed into the cell.

be necessary to make the solution economically sustainable on a larger scale. The next step was to start with industrialisation. It took some time to design an actual industrial process starting from the laboratory scale that could then be used in a pilot system. Moreover, the equipment had to be designed to work in a marine environment, which has rarely been done before for this particular combination for this specific onboard ship carbon capture application. The target of the pilot study was well defined in advance: verify the process and the selected component

when operating in a real environment. In order to achieve a system that is operational and reliable, it has to be able to work not only as a whole, but also each component must be properly selected for its specific use and be suitable for the specific environment. The process must also be well defined and specific to the environment where the system operates and have been demonstrated to work flawlessly and efficiently in all operating conditions. It is of utmost importance to deeply understand the behaviour of the reagent, and eventually its characterisation, when designing the system. Different reagents have

FROM LABORATORY TESTING TO PILOT PLANT

Of the two chemical absorption-based technologies, one of them uses an amine-based reagent and the other uses a calcium hydroxide suspension (lime milk) as a reagent to treat the exhaust gas, removing the CO2 from it. This results in liquefied CO2 when using amines or mineralised CO2, calcium carbonate, when using lime milk. The laboratory testing carried out with the support of the University of Turin made it clear that both chemical absorption-based technologies have some potential. On a laboratory scale, the reactions took place with good results, but it also became clear that some optimisations would

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COMPANY PROFILE

a strong impact on the definition of the process. Later, during the testing phase, the target is their more detailed characterisation. The deeper the understanding is about how the reagents react to the operations of the system, the more it can be characterised, which leads to better system operation and maximized efficiency. For better understanding of the pilot plant CO2-capturing limits, defining the best operating conditions, moving from the laboratory scale to an industrial plant is typically the most critical phase when developing a technological solution. The lack of real-world information makes the feedback received from the pilot crucial for setting the benchmark that will become the gold standard on which every future design will be based. With that in mind, the pilot system was designed, fabricated as a skid, and installed in the Ecospray testing facility, which is equipped with a diesel engine capable of replicating real environment conditions. Tests lasted several weeks, with the system operating alternatively with both chemical absorptionbased technologies, collecting all the information and data.

based on this technology. The remarkable lime to limestone conversion rate (90-95%) confirmed the maturity of the solution as well as its potential for robust CO2 capture designs while minimising operational expenditure. Amine-based technology: A consistent CO2 capturing rate of 50% on average, with a peak of 80% in specific conditions, is one of the key results obtained from the testing phase. This confirms the reliability and functionality of the aminebased process for the removal of carbon dioxide from exhaust gases. Low temperature/low pressure regeneration of the selected amine mixture has also been achieved, highlighting the system’s ability to reduce the energy requirements for the regeneration process. After analysing all the data collected from on-land and onboard testing, Ecospray was able to perform a detailed comparison between its amine-based process, with low temperature/low pressure

regeneration, and the conventional method. As it is possible to efficiently use the waste heat recovered onboard, and, due to the low temperature regeneration process (65 to 80 °C), Ecospray demonstrated remarkable 10-15% energy savings with its technology, compared with the traditional approach. The insights gained from the testing phase played a pivotal role in advancing the development of these technologies toward their real scale applicability on board ships. This was accomplished in Q3/23, making it possible to complete the design phase for the full-scale system using aminebased technology that will be deployed as a solution ready for the market starting in Q1/24. For more information, contact: Ecospray Technologies S.r.l. Via Circonvallazione, 14/14A-15050 Alzano Scrivia (AL) Italy Tel:+39 0131 854611 Email: marine@ecospray.eu ecospray.eu

THE REAL ENVIRONMENT ONBOARD TESTING PHASE

The following step was to move the pilot plant on to a commercial vessel and operate it for several weeks in a real environment to reconfirm the results obtained at Ecospray for the two technologies. Then an endurance test could be carried out on the system to increase the amount of data to be analysed in the following phases. Substantial achievements were achieved at the end of the testing period. Calcium Hydroxide-based technology: Its applicability in marine flue gas treatment has been proven, demonstrating the adaptability and practical application of the solution. The complex physics and reaction kinetics on which this process is based have been more deeply understood, making it more effective when designing additional systems that are

Excerpt of data collected from the pilot plant used to finalize the industrialization of the technological solution

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The industry is heading towards net zero with a number of new innovations and partnerships

NEW WAYS FORWARD As the shipping industry seeks alternative fuels to meet legal requirements, there are a number of new initiatives in play that aim to meet regulatory expectations. Raízen, an integrated energy company with a broad portfolio of renewables, and Wärtsilä have signed a decarbonisation agreement in order to advance decarbonisation of the marine sector. By studying the effects of ethanol application as a marine fuel, the new initiative aims to reduce greenhouse gas emissions (GHG), provide novel options to customers seeking sustainable fuel alternatives and substantively contribute to the discussion of the energy transition in the global marine sector. “Ethanol is a promising marine fuel that is readily available now,” says Paulo Neves, vice president of trading at Raízen. “By working with Wärtsilä, we hope to support the marine sector global decarbonisation efforts, with ethanol being a viable contributor towards a portfolio of low-carbon solutions for this sector.”

Wärtsilä, under its fleet decarbonisation programme, has achieved a series of significant milestones to bring new sustainable solutions to the market, to increase engine efficiency and to support the decarbonisation of maritime operations. By conducting technology tests with ethanol as a primary fuel in Wärtsilä Sustainable Fuels engine laboratories, supporting Raízen in discussions with ship designers and shipowners, and also on regulations and compliance requirements for the use of cellulosic ethanol as fuel, the agreement will help to drive the integration of clean energy solutions within the maritime sector. “At Wärtsilä, we are investing heavily in the development of technologies, engines and solutions aimed for low- and zerocarbon marine fuels. This agreement with Raízen, a company committed to supporting the sector’s decarbonisation, is yet another example of how we seek ways to enable the journey towards a decarbonised future,” comments Stefan Nysjö, vice president, power supply, Wärtsilä Marine Power.

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Replacing fossil fuels with sustainably produced ethanol in marine transportation can reduce CO2 emissions by up to 80% in a standard route from Brazil to Europe, according to Raizen’s initial studies review. Ethanol has the potential of being a viable solution to help decarbonise the sector since it provides greater flexibility and optionality as the industry moves toward a combination of lower-emission fuel options. With the International Maritime Organization’s Greenhouse Gas Strategy aiming to reduce carbon emissions from international shipping by 40% by 2030 and 70% by 2050 versus 2008 levels, ethanol can provide one more avenue to help achieve this target.

SUSTAINABLE BIOFUELS

FincoEnergies has announced the expansion of its GoodFuels, GoodShipping and GoodZero brands into the Americas, with the appointment of Kimberly Westmoreland as managing director for the region. FincoEnergies’ new US-based team will provide real-time support for and access to commercially-proven sustainable biofuels, carbon insetting and carbon offsetting offerings across the Americas, responding to the fast-growing demand for immediate decarbonisation solutions in the region. FincoEnergies’ GoodFuels brand has delivered advanced fuels that “drop in” to conventional tanks and reduce carbon emissions by up to 90% without requiring any alterations to the fuel infrastructure or marine engines. Circularise and GoodFuels, FincoEnergies’ sustainable fuels brand, have announced their project to digitise the biofuels record management process required for RED II compliance. Throughout this innovative project, FincoEnergies shared its knowledge on book-keeping processes with Circularise to expand its MassBalancer traceability software suite to include the biofuels supply chain, adding ISCC EU certification as an additional supported framework. The European Union’s RED II regulation aims to ensure that biofuels

provide a truly sustainable alternative to fossil fuels. As part of this regulation, records must be maintained for the sourcing, chain of custody, and greenhouse gas (GHG) emissions of the biofuel product process and then verified by a third-party certification scheme such as ISCC EU. This process of book-keeping is currently a manual process of companies exchanging information from pdfs and spreadsheets, which can be costly and time-consuming. Adding a digital method of record management will increase information security and ease-of-use for any organisation that needs to report their biofuels feedstock and supply chains. By digitising the record-keeping process, information on the chain of custody and GHG emissions of the biofuel products can be efficiently audited, supporting a trustworthy and fair marine biofuels industry.

MATERIAL CHOICE

The choice of material for fuel storage tanks is determined by the characteristics of each alternative fuel, design temperature and vapour pressure, says classification society Korean Register (KR). For instance, liquefied natural gas (LNG) fuel tanks require materials like austenitic stainless steel or nickel alloy steel that can withstand temperatures of -163°C and vapour pressures of less than 0.7 bar. Methanol fuel tanks do not require low-temperature-resistant steel, but corrosion-resistant coatings could be needed. Ammonia tanks need steel that can endure -55°C and hydrogen tanks require materials that are not sensitive to hydrogen. Cost is a major factor when selecting materials, but the weight of the fuel tank is equally important. Different alternative fuels have varying densities, which affects the required material thickness for structural strength and thus the weight of tank and supporting structures. Understanding these parameters aids in the effective design and selection of fuel tanks, balancing both cost and structural requirements. To facilitate the selection process, KR has shown diagrams illustrating the

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preferred fuel tank type and materials for each alternative fuel. In summary, the primary materials for Type-C LNG tanks are 9% nickel alloy steel or high-manganese steel. For membrane-type LNG tanks, austenitic stainless steel or INVAR are top choices. Methanol and ammonia tanks will predominantly use carbonmanganese steel. For hydrogen, austenitic stainless steel is likely to be the go-to material.

HYDROGEN OPPORTUNITIES

Alfa Laval is establishing a new business unit – Business Unit Electrolyzer and Fuel Cell Technologies – with the aim of capturing business opportunities in the hydrogen sector. This initiative underlines the company’s commitment to driving the energy transformation towards clean energy sources. Over the past three years, Alfa Laval has been present in the hydrogen market, pioneering products and solutions in the areas of electrolysers and fuel cells. Recognizing the potential, Alfa Laval has decided to establish a new business unit and develop new products and solutions in hydrogen applications in collaboration with industry leaders. Drawing upon the company’s extensive expertise in heat transfer and metallurgy, Alfa Laval is uniquely positioned in the hydrogen economy. Tom Erixon, president and CEO of Alfa Laval, comments: “The creation of a dedicated business unit confirms our commitment to drive the necessary actions in the evolving energy landscape. Hydrogen plays a pivotal role in the energy transition and our ambition is to speed up this transformation through innovation and the industrialization of electrolyser and fuel cell components.” Alfa Laval has also announced that it will build an innovation centre dedicated to heat exchangers, fuel cells and electrolyser components to further drive innovation, R&D and testing in these areas, both from a capability and pace perspective. The innovation centre will be located at the company’s headquarters in Lund, where the largest heat exchanger

ALTERNATIVE FUELS

factory is located. The investment is significant both in terms of resources and equipment. Madeleine Gilborne, head of clean technologies and vice president of the energy division, will take the role of president of the new business unit. The unit will be established by 1 January 2024 and will be part of the energy division.

NEDSTACK FUEL CELL AIP

Nedstack Fuel Cell Technology has received an Approval in Principle from Bureau Veritas or its PemGen® 600 containerised fuel cell system. This approval represents a major milestone in advancing clean and sustainable power generation in the maritime industry. The PemGen® 600 fuel cell system, powered by hydrogen, is specifically engineered to deliver efficient and reliable power generation while operating without emissions. The PemGen® 600 fuel cell system is characterised by the following key elements: » Power generation: engineered to generate a high power output, the PemGen® 600 fuel cell system provides a robust and sustainable energy solution for marine vessels, ensuring a reliable power supply. The system has been based on proven technology and more than

two decades of experience in the industrial application of LT-PEM fuel cell technology. » Zero emission: the PemGen® 600 fuel cell system utilises hydrogen as fuel and has no harmful emissions, contributing to the decarbonisation efforts of the maritime industry. » Safe to use: Nedstack safety concept has a proven track record and is based on a good ventilation high dilution philosophy. A range of projects adopting this philosophy have already been delivered in maritime and industry, including the PemGen® 600. “We are extremely proud to receive Approval in Principle from Bureau Veritas for our PemGen® 600 fuel cell system design,” says Jogchum Bruinsma, commercial chief officer at Nedstack Fuel Cell Technology. “This recognition highlights our commitment to delivering innovative and sustainable solutions for the maritime sector. We believe that hydrogen fuel cell technology has tremendous potential to revolutionise power generation in the industry, and this approval marks a significant step towards realising that vision.” The Approval in Principle from Bureau Veritas validates the compliance of the PemGen® fuel cell system design with BV’s NR467 - Classification Rules for fuel cell power systems on board

PemGen® 600 Maritime Fuel Cell System Photo credit: Nedstack

ships. Nedstack Fuel Cell Technology will continue to collaborate closely with Bureau Veritas throughout the classification and certification process to ensure the highest standards of safety and performance. As a leader in fuel cell technology, Nedstack Fuel Cell Technology remains dedicated to driving the adoption of hydrogen-based power solutions for a sustainable future. The Approval In Principle of the PemGen® 600 fuel cell system represents a key milestone in their mission to provide clean and efficient energy solutions for the maritime industry.

AMMONIA SOLUTION

Technology group Wärtsilä has introduced the marine sector’s first commercially available 4-stroke engine-based solution for ammonia fuel. The new solution enables a significant advance in sustainable shipping operations – during a time in which ship owners are seeking viable options among green fuels. The ammonia solution is now commercially available as part of the Wärtsilä 25 engine platform, which was launched in September 2022. Viridis Bulk Carriers is intended to be the first shipowner to benefit from the new ammonia solution. The company is a partnership between Amon Maritime, Mosvolds Rederi and Navigare Logistics. Wärtsilä and Viridis Bulk Carriers recently signed a letter of intent for the Wärtsilä 25 ammonia engine solution, and aim to sign a contract early next year. The plan is for Viridis to bring a ‘green game changer’ to the European short-sea bulk market, with planning for a carbon free transportation service based on a series of ammonia-powered newbuild vessels. “The maritime industry must significantly reduce its emissions if we are to succeed in reaching the goals set in the Paris agreement. The adoption of new technologies and ammonia as a carbon-free fuel is central to this,” saysd André Risholm, board member at Viridis Bulk Carriers. “We are delighted to partner with Wärtsilä on another important milestone for our ammoniapowered short sea bulk vessels.”

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Håkan Agnevall, president and CEO of Wärtsilä, says: “Wärtsilä is a leader in shaping the decarbonisation of marine and energy industries. This industry-leading solution is yet another flagship moment in Wärtsilä’s extensive programme to ensure future marine fuels are both viable and safe. Working in partnership with Viridis Bulk Carriers, we take the next step in our decarbonisation journey, enabling the transition to greener fuels and accelerating towards net-zero emissions shipping.” In addition to the engine, the full solution includes an AmmoniaPac fuel gas supply system, the Wärtsilä Ammonia Release Mitigation System (WARMS), and the Wärtsilä NOx Reducer (NOR) for optimal exhaust after-treatment. Safety and efficiency are central to the solution design, maximised by a highly sophisticated automation system and maintenance agreement to ensure safe and efficient

onboard operations. The safe and smooth adoption of ammonia as a new fuel for crew members is further supported by dedicated training and 24/7 global support. “The ammonia solution is based on Wärtsilä’s well-proven liquefied natural gas system, from which we have gained invaluable experience. The Wärtsilä 25 engine has been designed for easy adoption of sustainable fuels and, now, in addition to its previous capability of operating on diesel, liquefied natural gas, or on gas or liquid carbon-neutral biofuels, we are proud to add ammonia to its specifications. This makes Wärtsilä 25 a thoroughly future-proof engine platform, that combines operational efficiency with environmental sustainability,” adds Roger Holm, president of Wärtsilä’s Marine Power business. Sustainable ammonia is one of the leading candidates in shipping’s

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search for alternative clean fuels. This new Wärtsilä 25 Ammonia solution can immediately reduce greenhouse gas emissions by more than 70%, compared to a similar sized diesel solution, meeting current EU targets until 2050 and even exceeding the International Maritime Organization target for 2040. “This is only the beginning,” continues Stefan Nysjö, vice president of power supply, Wärtsilä Marine Power. “The Wärtsilä 25 is the first Wärtsilä engine to run on ammonia as a fuel, and this is an important milestone, but we do not stop here. “While we are planning for additional ammonia engines in our portfolio over time, we are also committed to continue development and testing of technologies and solutions that can continue to support the industry with reducing greenhouse gas emissions even further in the future.”

HYDROGEN STORAGE

Korean Register (KR) has announced the publication of a Research Report of Material Compatibility for Liquid Hydrogen Storage on Marine Application. This report provides detailed technical information on materials suitable for on-board liquid hydrogen systems. Following the recent resolutions at the International Maritime Organization’s MEPC 80 meeting, where it was agreed upon to steer the shipping industry towards a net zero greenhouse gas emissions goal, countries are developing zero-carbon fuels and technologies for on-board use to meet their decarbonisation targets. Hydrogen stands out as one of the most promising alternative fuels, KR believes. It is a carbonfree option that can also serve as a feedstock to produce alternative fuels, such as methanol. As international hydrogen transport and trade are becoming increasingly active, the demand for hydrogen

ALTERNATIVE FUELS

carriers and hydrogen-fuelled ships is expected to rise. For safe and efficient storage and transport of hydrogen, it must be handled in its liquid state. This necessitates a cryogenic environment. However, until now, there has been a notable lack of research infrastructure and industry understanding of the materials used in marine liquid hydrogen storage systems. To proactively respond to the future carbon-free fuel era, KR has been conducting the Korean Ministry of Oceans and Fisheries’ Hydrogen Ship Safety Standard Development Project since 2020. In collaboration with Dr Kim Yongjin’s team at the Korea Institute of Machinery and Materials and Professor Kim Jeong-Hyeon’s team at Pusan National University, KR has jointly established a ‘Cryogenic Evaluation Infrastructure’. The Cryogenic Evaluation Infrastructure is the only facility of its kind available in Korea. It is designed to test and analyse materials for alternative fuels that require cryogenic

facilities, such as hydrogen. In this study, it was used to simulate the hydrogen environment by conducting mechanical evaluation test at -253°C, the storage temperature of liquid hydrogen. This research report reflects the results of these tests and establishes evaluation methods for applied materials such as hydrogen pipes and tanks, as well as standards for applied materials. KIM Daeheon, executive vice president of KR R&D Division, says: “We believe that the results of this study will provide valuable guidance to industry, academia and research institutes researching and developing green ships and alternative fuels. “KR will continue to support our customers and the maritime industry in various ways by developing new technologies and sharing the latest technical information to respond to environmental regulations”. The latest report is open to all interested parties and is available on KR’s website at: krs.co.kr

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FUEL CONDITIONER TRIAL

Monaco-based dry bulk ship management company Marfin Management has successfully concluded an initial three-month trial of SulNOx’s all-natural, fully biodegradable fuel conditioner, SulNOxEco, on board the 60,000dwt Ultramax bulk carrier Paolo Topic. The results demonstrate fuel savings of up to 6.4% when the conditioner was utilised for burning very low sulphur fuel oil (VLSFO) in the vessel’s MAN two-stroke engine, the company says. Marfin has expanded its existing agreement with SulNOx to carry out further trials on board up to six vessels across Marfin’s fleet to maximise fuel and cost savings onboard during this period. Ben Richardson, chief executive of SulNOx, says: “We are excited that Marfin has shown such significant savings on board Paolo Topic, which could amount to circa $200,000 per annum and represent around 200% return on investment. “The fact that Marfin has agreed to purchase more product and expand the trial to as many as six vessels will result in significant revenues for the group. We hope that this latest proof of the effectiveness of our products with a very well-respected shipping company will encourage other shipping companies to trial and adopt SulNOx themselves,” he says. The success of the initial trial and a further expanded agreement are evidence of the value of low capex, drop-in fuel conditioners for a range of common marine fuels as a route to emissions reduction and cost savings. Additionally, these fullybiodegradable fuel conditioners serve as a simple and effective route to meet emissions regulations. Alex Albertini, CEO at Marfin, says: “We are thrilled about the preliminary results of this trial and see SulNOx products as a solution to help reduce global emissions, meet the IMO’s Carbon Intensity Indicator (CII), and offset the costs associated with the EU Emissions Trading System (EU ETS). We look forward to continuing to work closely with the SulNOx team to reduce

ALTERNATIVE FUELS

our costs whilst also improving our carbon footprint further together.” During a five month-long trial in cooperation with a Hamburg-based shipping company and a Northern German university for maritime shipping, fuel conditioner SulNOxEco reduced marine diesel consumption in a two-stroke marine diesel engine by more than 5% in real world conditions.

Alex Albertini, CEO at Marfin Management S.A.M.© Marfin Management S.A.M.

“We are excited that Marfin has shown such significant savings”

Ben Richardson, CEO of SulNOx © SulNOx

The evaluation project opens the door to significant fuel savings and emissions reductions across the maritime industry using SulNOx’s ‘nocapex’, drop-in fuel conditioners for a range of common marine fuels, the company says. The latest confirmation of the fuel conditioner’s efficacy demonstrates its potential to help shipowners and operators meet global and regional emissions regulations, such as the CII and EU ETS. Richardson comments: “Meeting the maritime industry’s emissions reductions target is an ecological and moral imperative and also makes perfect business sense. Shipowners face tough decisions on future fuel choices, but we must take action on decarbonisation today. Our fuel conditioners are an immediate, easy win to make the most of current fuels, save money and cut harmful emissions.” SulNOxEco Diesel Conditioner was applied to the vessel’s fuel under real operating conditions during commercial voyages in the North Atlantic Ocean and Mediterranean Sea. Baseline measurements of fuel consumption on the two stroke MAN B&W 6S35MC engine were taken at 60% and 70% engine load, and then repeated using SulNOxEco treated fuel. The project measured a consistent 5-6% reduction in specific fuel consumption using a 1:2000 ratio of SulNOxEco Diesel Conditioner in MDO fuel (DIN ISO 8217). The project partners plan a further trial application of SulNOxEco on an engine running VLSFO where experts from the shipping company and the university expect an even greater fuelsaving effect. Previous studies of SulNOxEco have shown a reduction in harmful PM 2.5 particulate matter emissions of over 60% and reduction in engine maintenance costs of around 2% thanks to the product’s impact by improved combustion, detergency and lubricity.

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ALTERNATIVE FUELS

FUEL CELL SYSTEM

Corvus Energy has been selected by Hvide Sande Shipyard in Denmark to supply a complete hydrogen fuel cell system for the training vessel MS Skulebas. The 35-metre fishing and training vessel has the latest technology and commercial fishing systems installed. The vessel, which is owned by Vestland County and operated by Måløy Upper Secondary School, will be the first of its kind, combining both fuel cells and batteries in a fishing vessel. The Pelican Fuel Cell System, developed by Corvus through the three-year H2NOR project, builds upon well-proven technology from global fuel cell leader, Toyota. It is the only marine fuel cell that is designed to fully comply with the well-known inherently gas-safe principle, meaning it can be placed anywhere onboard a ship without additional safety systems, Corvus says. Corvus will deliver a 340kw PEM fuel cell system for Skulebas and Hexagon Purus will deliver the hydrogen storage solutions. The hydrogen fuel cell system is

scheduled for delivery in Q2 2024 and will be in full operation from Q3 2024. Geir Bjørkeli, CEO of Corvus Energy, says: “This installation will be another big milestone for Corvus. Adding the Pelican fuel cell to the energy system onboard will make this the first zero-emission fishing vessel in the world. Skulebas will play a pivotal role in showcasing the feasibility, efficiency, and environmental benefits of fuel cells within the maritime industry, furthering the transition to decarbonise all vessels.” “Vestland County was the first to invest in all-electric ferries back in 2014, and since then it has become a pioneer and global example with 19 out of 25 ferry routes being allelectric. This demonstrates that policy works, and we believe that today´s milestone will be the start of the same journey for hydrogen fuel cells as it was for batteries.” MS Skulebas is already equipped with Orca batteries from Corvus Energy, which will work together with the Pelican Fuel Cell System. Combining the two technologies could significantly extend the range of zeroemission operations.

Kristian Holmefjord, Corvus EVP and project director of fuel cells, explains: “Adding our inherently gas-safe Pelican Fuel Cell System will enable the vessel to conduct the majority of its operations fullyelectric, producing zero emissions, supplemented by clean hydrogenpowered energy when needed.” MS Skulebas is owned by Vestland County, and the county mayor, Jon Askeland, is excited that the first hydrogen/electric hybrid fishing and training vessel will be operated by Måløy Upper Secondary School: “A unanimous county council decision supported the need for this vessel. It will play a vital role in attracting and educating the future workforce. “Investing in this project is one of the most forward-thinking uses of our funds, and it equips us to advance the fishing industry into a new era with evolving demands for more sustainable fishing methods, environmentally friendly propulsion, high flexibility, and above all, a high level of safety for all on board. Therefore, it is very gratifying to also introduce a cutting-edge hydrogen installation on the vessel.”

With hydrogen fuel cells on board, MS Skulebas will be the world`s first zero-emission fishing vessel

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COMPANY PROFILE

BASEBLUE: TAKING A COMPREHENSIVE AND COHESIVE APPROACH Baseblue is a leading provider of marine energy solutions. It was formed through the merger of three pioneer bunkering companies: Bunkernet, BMS United and SBI Bunkering BV. Baseblue has more than 30 years of industry experience and combines the expertise and resources of these companies to deliver agile and innovative solutions to customers worldwide. The company offers a wide range of services, including alternative fuels, emissions trading and digital optimisation. It is dedicated to helping customers navigate the transition to cleaner, more sustainable operations

in the maritime industry. Baseblue has offices in Greece, Argentina, Cyprus, Hong Kong, and the Netherlands, and its team consists of more than 80 specialists with global expertise. With a strong commitment to customer care and building strong relationships, Baseblue provides dependable marine energy solutions that drive sustainable growth. The company’s services include holistic and integrated bunkering and lubricant solutions, risk management consulting, quality testing, surveying and postfixture services for end-to-end coverage. Baseblue’s team of more than 80 experts stays updated on upcoming

legislation, the availability and supply of alternative fuels and other industry trends. Through its post-fixture team and digital tools, customers receive constant input and the ability to track their vessels’ progress in realtime, reducing potential issues and waiting time. At Baseblue, our bunkering services are designed to provide our customers with a seamless and efficient fuelling experience. We understand the critical role that bunkering plays in the smooth operation of vessels and we strive to deliver exceptional service at every stage of the process.

Grigoris Gregoriou, Lars Nielsen, Dave Gregory, Antonis Xiros, Nicholas Argyrou, Baseblue Management Team

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COMPANY PROFILE

What sets Baseblue apart is our comprehensive and cohesive approach to bunkering. We go beyond just providing fuel – we offer end-to-end support and care for all post-fixture procedures. From the initial inquiry to the final delivery, we ensure transparency, competitive pricing and timely updates on the progress of every bunkering operation. Our proactive follow-up guarantees that everything remains aligned with the agreed supply, providing peace of mind, and eliminating potential issues. To further support its customers, Baseblue provides 24/7 post-fixture service, with timely updates for every bunkering operation. This ensures that clients have continuous support and transparency throughout the fuelling process. Additionally, Baseblue offers leading insurance coverage for product liability and professional indemnity, providing added peace of mind to customers. Moreover, our team of bunkering specialists comprises industry experts with extensive experience worldwide. We leverage this diverse knowledge base to offer comprehensive guidance and support. We understand the challenges of navigating the maritime industry and are dedicated to helping our clients manage change, seize opportunities and achieve greater resilience and sustainability. In addition to its core services, Baseblue is actively helping businesses meet emissions reduction targets by providing guidance on alternative fuels and other sustainable operations. The company has exclusive partnerships and trials with leading suppliers of transitional and future fuels, including liquefied natural gas, methanol, biofuel and ammonia. These alternative fuels are viable options for reducing carbon emissions and enhancing the shipping sector’s environmental sustainability. Baseblue is at the forefront of providing alternative fuel solutions to the maritime industry. The company recognises the importance of transitioning towards cleaner and more sustainable operations and actively supports its customers in meeting their emissions reduction targets. Baseblue leverages its in-house experience of future fuels to provide

valuable insights to its clients. The company has already worked with pioneering clients in various vessel categories, such as offshore supply vessels, heavy lift and specialised vessels. Moreover, it actively collaborates with other vessel types, including container ships and car carriers, to advise on their future fuel strategies. The company’s dedicated alternative fuels team is well-versed in the advantages and drawbacks of each fuel type. The company’s strong financial backing and attractive credit facilities enable smooth and cost-effective fuel procurement. Baseblue ensures competitive and reliable supply sources for alternative fuels through allied suppliers and exclusive partnerships. Baseblue’s global coverage extends to nearly all commercial ports and anchorages worldwide. This extensive network allows the company to facilitate the efficient bunkering of alternative fuels, ensuring customers can access them wherever their vessels operate. Furthermore, Baseblue assists its clients by offering recommendations and support in navigating new regulations and legislation related to alternative fuels. The company is well-versed in handling claims on quantity and quality and even assists in third-party claim handling. This comprehensive support allows customers to navigate the complexities of the maritime industry while focusing on their core operations. With its expertise in alternative fuels and commitment to sustainable practices, Baseblue is a trusted partner for businesses embarking on their decarbonisation journey. By leveraging its global network, extensive market knowledge and collaborative approach, Baseblue helps customers make informed decisions, adopt cleaner energy solutions and drive sustainable growth in the maritime sector. Baseblue also offers comprehensive and reliable lubricant solutions to enhance the performance and longevity of your machinery and equipment. Our lubricant specialists work closely with you to understand your requirements and challenges. We assess your equipment types, operating conditions,

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and performance goals to recommend the most suitable lubricants for your needs. With a wide range of high-quality lubricant products from trusted manufacturers, Baseblue provides customised lubrication solutions designed to optimise the performance and reliability of your machinery. Our robust logistics network and strategic partnerships with global shipping providers ensure the timely and efficient delivery of lubricants. Baseblue can deliver lubricants worldwide to nearly all commercial ports. With Baseblue’s lubricant services, you can optimise your vessel’s performance, efficiency and durability. Our comprehensive solutions, expertise and commitment to quality ensure that your vessel operates smoothly and reliably. Whether you need lubricants for marine vessels, industrial machinery, or other applications, we deliver reliable lubricant solutions tailored to your specific needs. Baseblue’s success in bunkering stems from our strong foundations, agile thinking and collaborative approach. We have built our company on a solid framework that ensures we consistently deliver the right products, services and solutions. Our agility allows us to adapt quickly to changing market dynamics, innovate and continuously provide value to our customers. We break down silos and foster a culture of collaboration, focusing on finding solutions and making our clients stronger. Overall, Baseblue aims to navigate its customers towards solid energy solutions, offering complete, dependable and reliable marine energy services that deliver greater peace of mind effectively, consistently, and competitively.

For more information, visit: base-blue.com

BALLAST WATER TREATMENT SYSTEMS

Top companies are clamouring to get on board a newbuild wind-powered cargo vessel, which includes sustainable chemical-free treatment technologies in its ballast water treatment system

FREE THINKING BIO-UV Group, a specialist in sustainable water treatment and disinfection solutions, has won a contract to supply its BIO-SEA UV ballast water treatment system to a wind-powered cargo vessel newbuild. The Neoliner 136 is the first ship of its kind from Neoline, a company established in 2015 to research solutions for zero-emission shipping, using unlimited, 100% clean and free energy: wind. The company’s first ship, a 136m sailing ro-ro vessel, is currently under construction by Turkey-based RMK Marine, which offers turnkey solutions in the production of super yachts, naval and commercial ships. The hybrid mechanical vessel, which combines electric propulsion and windpowered sailing, uses AeolDrive/Solidsail technology from Chantiers de l’Atlantique to provide the main propulsion via 3000m2 of solid sail. It will reduce greenhouse gas emissions by up to 90% on an ocean crossing and will eliminate sulphur and nitrogen oxide emissions.

The overall Neoliner project is expected to last more than 12 years, with a total cost of €60m. BIO-UV Group will supply RMK with a modular BIO-SEA B03-340 unit, a threelamp system (suitable for a flow rate of up to 340m3/h) to the ship, with delivery scheduled for January 2024. The BIO-SEA solution addresses the challenges posed by micro-organisms that are transferred during the loading and unloading of untreated ballast water in ports. The all-in-one automated solution is chemical-free and certified by the International Maritime Organization and United States Coast Guard. The contract includes final drawings, commissioning, and crew training. “BIO-UV Group is engaged in sustainable chemical-free treatment technologies, and it is important for the Group that these are installed onboard flagships of the French merchant navy,” says Laurent Emmanuel Migeon, CEO of BIO-UV Group. “We strongly support the development of the sailing cargo sector, and this contract

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BALLAST WATER TREATMENT SYSTEMS

demonstrates our commitment to the decarbonisation of the maritime industry. The sector is growing, especially in France where it is no longer regarded as a curiosity but is an attractive business model as wind is free and available wherever vessels are sailing.” BIO-UV Group’s French heritage and expertise were a strong factor in the choice of the company’s solution, said Jean Zanuttini, Neoline’s CEO, as the Neoline design and management

company is also a French company. “The company was keen to work with a local provider to optimise maintenance and service costs for the long term.” The ship will enter service in 2025, providing decarbonised transport from France to the US for luxury brands such as Hennessy, Longchamp, Michelin and Clarins, who have joined the project to reduce the impact of their supply chains. “We are proud to play a role in this project, which will help improve

the corporate social responsibility strategies of the participating companies,” says Migeon. Operating on a route that takes in Saint-Nazaire, Saint-Pierre and Miquelon in France, Halifax in Canada and Baltimore in the US, with one rotation per month, the ship will sail at 11 knots on average. It will have capacity for 265 containers and 5,300 tons of goods. In the future, the plan is to have two ships alternating on the route.

The Neoliner 136 will benefit from a modular BIO-SEA B03-340 ballast water treatment system similar to the BIO SEA B02 unit pictured

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jotun.com

Committed to the green shipping movement The need to improve sustainability in the shipping industry is accelerating. The global industry must cut carbon emissions, protect marine biodiversity and leverage the use of data for smarter decision-making. With nearly 100 years of experience of charting through unknown waters, Jotun is committed to continuously innovate and develop advanced products and solutions designed to protect biodiversity and cut carbon emissions to support global sustainability ambitions and achieve cleaner operations for all industry players. A clean hull ensures cleaner operations.

Clean shipping commitment

HULL PERFORMANCE

MARINE COATINGS

Antifouling is an effective method of not only improving vessel performance, but safeguarding against the impact of biofouling on the environment

THE BOTTOM LINE Almost two thirds (59%) of the shipping industry underestimate the negative environmental impacts of biofouling, with as much as one in four claiming to know little about the issue, a new report by Jotun has found. Biofouling is caused by the build-up of micro-organisms, plants, algae and other small aquatic animals on the hull of a ship, which can result in significant operational impacts. The marine growth that clings to the underside of a ship’s hull reduces speed and maneuverability, causes the captain to power up and use more fuel to compensate for speed loss and, in extreme cases, can damage the hull. The survey of 100 shipping industry professionals, conducted by Lloyd’s List on behalf of the specialist marine coatings manufacturer earlier this year, followed on from the GloFouling report published in partnership with the International Maritime Organization (IMO). This found that maritime transportation is responsible for 3% of the world’s total greenhouse gas emissions,

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but should vessels operate with a clean hull free from biofouling, CO2 emissions could be slashed by a fifth and fuel spend reduced by 19%. The research by Jotun shows that the industry has a long way to go before achieving such gains. Just over a third of shipping companies (38%) said they invest in biofouling solutions outside of dry-docking, a process which tends to be conducted in five-yearly cycles. Lack of awareness and cost-limitations were cited as the main reasons why 62% of shipping companies only invest in biofouling solutions during the dry-docking period. However, the GloFouling report showed that a ship could save as much as $6.5m on fuel costs over a five-year period by adopting proactive hull and propeller cleaning. Morten Sten Johansen, global marketing director, hull performance category at Jotun, says: “If the shipping industry took a more proactive approach to hull cleaning, we as an industry could save as much as 198 million tonnes of CO2, according to global

estimations published by the IMO in 2022. This is more than six times the volume produced by the nation of Norway annually. “However, an issue that is often overlooked is the potentially catastrophic impact biofouling can have on biodiversity through the spread of invasive aquatic species, such as Pacific oysters, which are plaguing European coastlines. The responses to our survey showed that this is still an incredibly misunderstood issue, with only 14% believing it posed a significant risk. “As well as being more fuel efficient and lowering emissions, proactive cleaning would reduce the risks ships pose to international waterways and maintain the shipping industry’s right to operate.” The survey highlighted the positive impacts of new carbon intensity indicator (CII) regulations, with 88% of shipping industry professionals saying they expect tackling biofouling to form part of their strategy to improve fuel efficiency, reduce greenhouse gas emissions and support environmental policies. Johansen adds: “It’s encouraging to see the impact new policies are already having on the industry and it’s likely that we’ll face more regulatory challenges in the future. Decarbonisation is vital and adopting new regulations to deliver the longterm goals of the Paris Agreement requires significant collaboration from industry and policymakers.

“Proactive cleaning would reduce the risks ships pose to international waterways”

MARINE COATINGS

Doubling up Jotun has also recently announced the completion of major expansion of its Global Intumescent R&D Laboratory to advance new product innovation and technologies. This ambitious expansion more than doubles the size of the Flixborough Global Intumescent R&D facility, aiming to increase Jotun’s product development and fire testing capacity and capabilities. The new facilities will accelerate the development of new innovations and more advanced products, whilst providing additional certification support to Jotun’s existing product range. Drone inspection Jotun Hellas has also recently introduced an Aerial Drone Inspection Service. The service involves certified and experienced Jotun coating advisors utilising state-of-the-art aerial drones to conduct comprehensive outdoor and indoor inspections of vessels. With the capability to access even the most challenging areas, including decks, accommodation, funnels, lifeboats, cranes, cargo holds, hatch covers and the external hull above the waterline, this service ensures the most thorough assessment possible. The Aerial Drone Inspection Service empowers ship operators with accurate and detailed information about the state of their vessels. The service analyses the vessel’s paints and coatings condition, documented with high-resolution photos and videos, enabling data-driven decisions for maintenance and repair works. The inspection material, including a complete Drone Inspection Paint Condition Report, is prepared by Jotun coating advisors having assessed each inspected area, ensuring that every aspect is considered, and every detail reported. The advantages are numerous, according to the company. Ship operators may now benefit from enhanced accuracy in budgeting and efficient scheduling of maintenance and repair works, resulting in cost efficiency and timely maintenance. By identifying and addressing corrosion at an early stage, drone

inspections support the prevention of deterioration and enable datadriven decision-making for safety on board. With access to reliable inspection information, ship operators can proceed with confidence in their improvement initiatives.

ANTIFOULING CONFERENCE

As the who’s who in the world of antifouling coatings and biofouling prevention technology world gathered on the west coast of Sweden in midSeptember, the importance of the role of antifouling coatings as the first line of defence against biofouling had recently intensified, according to a recent article by Selektope’s Catherine Austin. “At the inaugural International Antifouling Conference last September, the resounding message among participants was that collaboration between paint manufacturers, biocide suppliers, other raw material suppliers and end users is essential to ensuring that coatings technology being developed today, meets the industry’s needs of tomorrow,” she writes. “In the shadow of the Initial IMO GHG strategy, which set decarbonisation targets for the international shipping industry, there had never been more pressure on antifouling coatings to perform. “Fast forward one year and the need for proactive biofouling management and effective antifouling coatings had stepped up a gear. As participants gathered on the west coast of Sweden in September for the second edition of the International Antifouling Conference, the pressure on ship operators to decarbonise their fleet had increased significantly in the July before the summer break. “The International Maritime Organization (IMO) had turned the dial up on international shipping’s climate change ambitions at the highly anticipated 80th Marine Environment Protection Committee (MEPC80). A game of regulatory ping pong during MEPC80 resulted in a leap from 50% reduction in GHG emissions by 2050 to net-zero emissions by, or around – ie close to – 2050.

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MARINE COATINGS

“That is a huge step up for the industry, not least because vessels being ordered now, and in the next few years, will need to meet the net-zero emissions requirement towards the golden oldie years of their operating life given that ships have a lifetime that often surpasses 25 years. “In fact, in 2022 the average age of all of the ships in the world merchant fleet was just over 20 years, and the average age of a general cargo vessel was 27 years . “While 2050 may seem like a vessel lifetime away, there are also a multitude of regulatory requirements facing the industry before 2050. In terms of climate change ambition, the newly revised 2023 IMO GHG Strategy (upgraded from the Initial IMO GHG Strategy) sets a first level of ambition for the industry to “strive” of 30% GHG emissions reduction by 2030, plus a mandatory 40% CO2specific reduction target, also by 2030 compared to 2008 levels. “Those immediate targets sit on top of the already established emissions reduction regulatory instruments, EEDI (Energy Efficiency Design Index), EEXI (Energy Efficiency existing ship Index), CII (Carbon Intensity Indicator). “To top that off, there’s an incoming emission trading scheme for ships calling at EU ports and an emissions trading scheme in the UK for domestic vessels. “Since biofouling is a sizeable contributor to increasing ship emissions and will impact the attainment of decarbonisation targets, mid-September was the perfect time for the biofouling prevention Avengers to assemble (excuse the superhero reference) and tackle the issue that

lay ahead. In a nutshell, biofouling accumulation on the hull makes the surface rougher and the ship slower, meaning that to operate at the same speed the ship consumes more fuel and emits more GHG emissions. “Research conducted by the IMO GloFouling initiative[2] has shown that even a light layer of slime can trigger an increase in emissions of 25%, by the time the hull is fully covered in barnacles the increase in emissions can rise up to 55%. “For those working in the antifouling technology sector, and for those bright minds in academic institutions working relentlessly to develop and test novel solutions for biofouling prevention, know that the mission at hand is tough. “As a sector we are challenged by increasing biofouling pressures worldwide due to warming waters as a side effect of global warming. We have been facing a reduction in the size of the marine biocide ‘toolbox’ for over a decade where the number of biocides for marine use have decreased significantly giving the chemistry and biology brains in the laboratories of paint manufacturers a smaller scope of tools to work with to create coatings that can deliver the continuous and long-length protection required for ocean going vessels. “We are also facing demands for coatings to have a longer service life and have a linear performance under any conditions, with ships operating between changeable marine environments.” For the full story and a round up of the Gothenburg event, visit: selektope.com

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Biocide coating Markus Hoffmann (above) of Selektope has also commented on biocides and their use as coatings. To-date, the marine biocide, Selektope (medetomidine) has been successfully commercialised in multiple self-polishing biocidal coating products for its function of repelling barnacle larvae from underwater hulls to prevent settling behaviour. This barnacle repelling effect is achieved when medetomidine leaches out from the coating surface when it is continuously polished by seawater. Currently, the use of medetomidine in foul release coating types has not been commercialised. However, extensive R&D work has been undertaken by I-Tech to investigate concepts for incorporating medetomidine into foul release coatings (FRC). The concept of incorporating medetomidine into silicone-based foul release coatings through the reaction of medetomidine and a functional isocyanate group on silicones has been successfully proven.

WIND POWER

In the search for environmentally friendly solutions for propulsion, wind power is an ageold solution with state-of-the-art capabilities

FORCE OF NATURE The Micronesian Centre for Sustainable Transport (MCST) and the International Windship Association (IWSA) have signed a Memorandum of Understanding (MoU) to jointly mobilise regional and international resources and collaborate on actions to support the use of wind propulsion technology to reduce greenhouse gas (GHG) emissions from ships in the Pacific region through the establishment of a Pacific Wind Propulsion Hub. By formalising their partnership, the two organisations will build upon past collaborative efforts to establish and expand the hub, developing a local ecosystem to enable wind propulsion technology to takeoff in the region. The Pacific Wind Propulsion Hub will serve as an epicentre for building capacity and exchanging experience, knowledge and best practices around wind propulsion technology use. The hub will incubate and support maritime organisations and companies in the region

by integrating Indigenous knowledge, local development and international networks, as well as providing increased support for research and development, training and educational services. Gavin Allwright, secretary general of the International Windship Association, says: “The Pacific Wind Propulsion Hub will create a level playing field for all stakeholders and lower the bar – and cost – on accessing finance and services, building a mutually beneficial virtual and physical network. This is the second wind propulsion hub established between IWSA and regional partners and we are certain the impact of this hub in prospering wind energy use by ships in the pacific region and beyond will be significant.” Dr Peter Nuttall, scientific and technical advisor at the Micronesian Center for Sustainable Transport, says: “The MCST is the vehicle for the Republic of the Marshall Islands to achieving our transport emissions reduction targets set under the Paris Agreement. In doing so, we want to act as a

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WIND POWER

catalyst for our friends and neighbours in other Pacific Island states. Shipping and sea transport is the very lifeline of our maritime atoll nation, and our ocean region and wind propulsion played a major role in Pacific history. “The Pacific Wind Propulsion Hub will enable wind power to return to the region to drive down emissions and create a sustainable shipping future.”

LEASING INITIATIVE

Norsepower IINO Kaiun Kaisha and Mizuho Leasing Company have signed a co-operation agreement to launch a mechanical sail leasing initiative for the Norsepower rotor sail. This aims to increase shipping companies’ access to Norsepower’s product to help reduce fuel consumption, greenhouse gas (GHG) and other related emissions. The International Maritime Organization (IMO) recently set a net-zero emissions target for close to 2050. However, the adoption of proven, commercialised energy efficiency products such as the Norsepower rotor sail is hindered by the traditional requirement for upfront investment. This initial investment can be a significant barrier to technology take-up for small to medium-sized shipowners and operators, despite the achievable fuel consumption, greenhouse gas (GHG) and other emissions reductions.

This failure means that thousands of vessels on the water today are missing out on the potential benefits of the Norsepower rotor sail. The new service aims to remove these barriers and enable greater accessibility to finance Norsepower’s product. The initiative’s focus is to provide shipowners and operators with leasing packages for the sail that start at a minimum five-year term against a fixed monthly fee. The concept is being developed amid growing recognition that GHG and other emissions reductions with low carbon or green fuels alone prior to 2030 will be minimal. This is due to the limited availability of alternative fuels, placing an onus on energy efficiency solutions like Norsepower rotor sails to maximise energy efficiency savings. Tuomas Riski, CEO, Norsepower, says: “Norsepower rotor sails are now an undisputed choice for making meaningful emissions reductions and managing escalating fuel bills. Having our product as standard onboard all suitable vessels should be feasible for shipowners and operators of all sizes. That’s why we’re delighted to introduce new, competitively priced leasing services with our partners. By doing so, we could lower upfront capital requirements and encourage vessel owners to take action and upgrade their fleets.

Artistic rendering of vessels equipped with Norsepower Rotor Sails™

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“We are proud to bring this initiative to market with such high calibre organisations as IINO Lines and Mizuho Leasing. Through collaborating, we aspire to offer combined access to significant credit facilities as well as leveraging IINO Lines and Mizuho Leasing’s extensive leasing experience across sustainable technologies, maritime assets and beyond.” Ryuichi Osonoe, director and senior managing executive officer at IINO Lines, comments: “We have fostered a strong relationship with Norsepower, installing its rotor sails on two of our vessels. Now, we want to make this product more accessible to the industry. We are confident that bringing together our complementary leasing and finance capabilities with Norsepower’s proven product will accelerate the shipping industry’s journey to decarbonisation.” Yasuhiko Hashimoto, managing executive officer at Mizuho Leasing, adds: “Through our work in other sectors, we have seen first-hand how improving access to finance and providing flexible options for accessing sustainable technologies can make a real-world impact on improving environmental performance. We are excited to apply our experience to the maritime industry and support IINO Lines and Norsepower in achieving our shared ambition to make the use of energy-efficient technologies a scalable reality.” The Norsepower rotor sail is a modernised version of the Flettner rotor. It uses a small amount of the ship’s electric power to rotate cylinder-shaped rotors to generate powerful thrust that saves fuel and reduces emissions. Vessel and cargo owners have already used the product for nearly 10 years, accumulating around 300,000 operating hours of verified performance data that show average fuel consumption savings of between 5-25%, or more in good conditions. These savings have been measured and analysed independently in various projects by Lloyd’s Register as well as ABB, NAPA, RISE, Chalmers University of Technology and VTT.

FLOATING FACILITY

Associated British Ports (ABP) has signed a memorandum of understanding (MoU) on cooperation with Taiwan International Ports Corporation (TIPC), in a ceremony at the Kaohsiung Port Cruise Terminal Port of Kaohsiung Passenger Terminal. The MOU opens the door for information and experience sharing between the two signatories on floating offshore wind (FLOW)related port facilities and for the exploration of future business collaboration opportunities. Henrik L Pedersen, CEO of ABP, says: “This agreement with Taiwan International Ports Corporation represents an exciting new stage in our journey towards net zero, for which international collaboration is key. Floating offshore wind presents huge opportunities to the UK, from becoming a global leader in green energy generation to creating significant jobs, prosperity and energy security. We look forward to working with TIPC to exchange ideas and accelerate the advancement of this technology.” The MoU was signed by TIPC vice president of business, Shu-hui Cheng and ABP head of offshore wind, Andy Reay. Cheng, says: “The third phase of offshore wind power development is about to unfold in Taiwan. With larger scale wind turbines, localisation policies, etc, there will be more demand for land and space in ports of Taiwan, and the demonstration plan of floating wind will also bring more requirements and challenges. “Through the signing of the MOU with ABP and information sharing between the two parties, I believe that TIPC will be fully prepared on port planning and construction in coordination with offshore wind power policies. Many of ABP’s ports are in close proximity to major British offshore wind farms, and ABP offers tailored services at its various ports to meet wind farm needs. For example, the Port of Hull hosts the Siemens Gamesa wind turbine blade factory and the Port of Grimsby hosts Europe’s largest offshore wind turbine operations. Enabling the clean energy transition is also a key focus for ABP, as it

WIND POWER

launched its ‘Ready for Tomorrow’ sustainability strategy in February 2023, which sets out the port operator’s plans to achieve net zero from its own operations by 2040. The strategy is backed by a £2bn investment in decarbonising ABP’s own operations and enabling large scale green energy infrastructure projects such as FLOW in Port Talbot. ABP is planning to invest around £500m to upgrade the Port Talbot site to support the wind farms and provide investors, developers and manufacturers the confidence to run large, long-term projects that will generate thousands of high-quality jobs.

ROTOR SAILS FOR VALE

Brazilian mining giant Vale has announced that it is to install five rotor sails from Anemoi Marine Technologies onboard a 400,000dwt valemax, the world’s largest ore carrier. The vessel is owned by Omani shipowner, Asyad. The agreement between Vale and Anemoi will see five 35m tall, 5m diameter cylindrical sails installed on the Sohar Max VLOC. The rotor sails will be installed on Anemoi’s bespoke folding deployment system, whereby the sails can be folded from vertical to mitigate impact on air draught and cargo handling operations. The installation work is expected to be completed in the second quarter of 2024. Rotor sails, also known as Flettner rotors, are vertical cylinders that harness the renewable power of the wind to provide additional forward thrust and improve the energy efficiency of the vessel, along with significant cuts to carbon emissions. Vale’s fleet of valemax vessels typically trade on deep-sea routes between Brazil, China and the Middle East, which are particularly well-suited for wind propulsion and analysing the savings. As a result, the installation of Anemoi rotor sails is expected to bring significant fuel and emission savings, with an expected 6% fuel reduction and cutting CO2 equivalent emissions by up to 3,000 tons per ship per year. Of the installation, Vale’s shipping technical manager, Rodrigo Bermelho, says: “Wind energy will play a central

role in our strategy to decarbonise the maritime transportation of iron ore.” Nick Contopoulos, COO of Anemoi, says: “We are delighted to announce this partnership with Vale, Asyad and other key project stakeholders. Anemoi has been developing tailored solutions for Vale’s vessels for a number of years and this latest project signifies an important step in Vale’s decarbonisation journey, using wind assisted propulsion as they lead the way to improve the energy efficiency of their vessels and reduce their net emissions.” This latest project from Anemoi follows the successful retrofit of three rotor sails with rail deployment systems onboard an 82,000dwt Kamsarmax bulk carrier in June 2023. Initial data harvested from the vessel to date suggest more than 10% average annual savings can be achieved. Rotor sails are proving a popular choice for shipowners looking for net-zero technologies to improve the energy efficiency of their vessels and help their ships meet critical international emission reduction targets.

Vale is to install five rotor sails from Anemoi onboard the VLOC Sohar Max © Anemoi Marine Technologies

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TECHNOLOGY

There are plenty of new technological developments available to improve efficiency, reduce errors and manage the transport process in a way that will both save money and reduce emissions

TAKING A HIGH-TECH APPROACH Weathernews and Dataloy Systems are joining forces to refine voyage management based on weather data. This integration combines Weathernews’ historical seasonal routes and sea margins with Dataloy Systems’ Voyage Management System (VMS) – providing streamlined access to critical data, error reduction, increased efficiency and a focus on enhancing voyage quality and profitability. In the context of the companies’ strategic partnership, mutual clients can effortlessly integrate Weathernews’ industry-leading weather data into their VMS platform, eliminating the need to switch platforms. This enhancement is aimed at refining pre-fixture planning, budgeting, and decision-making, ultimately making voyage management smoother and more efficient. Within Dataloy Systems’ VMS platform, users gain access to vessel employment records covering several decades, providing a solid basis for making informed commercial decisions.

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Joint customers can make decisions by selecting alternative routes based on historical weather and weather impact data. Customers can easily visualise the different impacts of their choices, and take action to optimise their business, both in terms of fuel savings and emissions reductions. “Optimising route-planning functions with advanced weather technology empowers owners and operators to make wellinformed route decisions, prioritising both efficiency and vessel safety. With a team of highly trained weather forecasters and meteorologists working around the clock to deliver cutting-edge weather forecasts, risk analyses, and routing advice, Weathernews currently provides weather forecast, risk analysis, and routing advice to approximately 10,000 vessels worldwide,” says Henrik Faurschou, global product and market strategy leader at Weathernews. “Our partnership with Dataloy Systems represents an exciting opportunity to simplify the decision-making process for commercial staff, ensuring

TECHNOLOGY

they make the most optimised choices. We are eagerly anticipating a fruitful, long-term collaboration with Dataloy Systems, as we work together to create solutions that enhance the safety and sustainability of the maritime industry.” “As we integrate Weathernews’ precise forecasting into our platform, we are not only equipping our clients with advanced tools for alternate weather routing but also reaffirming our commitment to advancing the maritime industry,” says Hege Jacobsen, head of partner relations at Dataloy Systems. “This collaboration is about more than just shared data; it’s about shared vision. Together, we are setting a new course for operational excellence, where informed decision-making leads to safer, more efficient, and environmentally responsible voyages.”

FUEL ECONOMIES

Fuel supply systems provider Auramarine recently announced a representative agreement with Dutch company THB Verhoef. The agreement will see THB Verhoef become an official sales agent and distributor for the Benelux region and Greece, selling and promoting Auramarine’s newly launched Auramarine Fuel Economiser (AFE) solution, including spare parts and installation services. Commenting on the announcement, John Bergman, CEO, Auramarine says: “Like Auramarine, THB Verhoef has a long history and experience of successfully serving the maritime industry with an innovative and customer-driven approach. Like us, it understands the pressures that shipowners and operators face in ,increasing operational efficiencies,

reducing costs and emissions and meeting increasingly complex regulatory requirements. “We are confident that it will be able to provide us with excellent support in taking our new AFE solution to market and helping our customers overcome these challenges and to thrive.” Auramarine AFE is a data collection solution that enables ship owners and operators to proactively analyse and identify where fuel consumption and emissions can be reduced, delivering savings of between 5% and 20%. The AFE monitors and measures the entire fuel consumption of vessels across a whole fleet, collecting data from fuel and power-related systems on board. It also reduces complexities and makes data collection easy for accurate reporting purposes in line with environmental regulations such as the International Maritime Organisation’s carbon intensity indicator. The AFE is an independent system and can be applied to any vessel regardless of the engine or fuel supply system that it is using. It can be integrated into most onboard systems and can be retrofitted in as little as two days.

“Auramarine AFE reduces complexities and makes data collection easy for accurate reporting purposes in line with environmental regulations” John Bergman, Auramarine CEO, and Adriaan Verhoef, THB Verhoef CEO signing agreement at Europort.

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TECHNOLOGY

ELECTRONIC FLARE

Leading marine safety equipment manufacturer Daniamant has announced the latest addition to its range of electronic visual distress signals – the ODEO SOS electronic flare. Featuring a high-intensity strobe light that emits the internationally recognised SOS Morse signal, the new ODEO SOS Electronic Flare offers enhanced visibility in emergency situations, such as a collision warning or to aid in pinpointing an exact position in an emergency. The lightweight and buoyant electronic flare is designed for exceptional endurance, with a fixed intensity of up to nine hours. This extended operational life and powerful output significantly increases the chances of successful rescues once activated – a crucial factor in critical situations at sea. The new visual distress signal operates using four AA L91 lithium batteries, known for their extended shelf life, power capacity and optimum efficiency in the harshest of ocean temperatures. The device features an easy-twist operation, which is a vital design mechanism in cold conditions to ensure reliability and functionality. Certified to meet the stringent requirements of the US Coast Guard (USCG), the electronic flare is a suitable alternative to pyrotechnic flares in countries including the US. The ODEO SOS is also approved as a night time visual distress signal with a nine-hour lifespan, boasting three hours more visibility than the USCG’s requirements of six-hour illumination. Furthermore, when used with the orange distress flag (provided at purchase), the ODEO SOS satisfies daytime visual distress signal requirements set out by the USCG. In US waters, the ODEO SOS can be used in place of pyrotechnic flares on vessels up to 20m in length and in areas within twelve miles of US waters, bodies of water with a passage to the sea of at least two miles wide or the Great Lakes. For vessels under 5m, while the distress flag is not obligatory, the ODEO

Vivid realisation of a ship’s bridge in KR-Real360

SOS still stands as a vital nighttime visual distress signal. Designed to withstand all weather conditions and exceed universal maritime standards, the ODEO SOS is waterproof to 5m, tested to Ingress Protection (IP68) standards, ensuring reliability even in challenging maritime conditions. The ODEO SOS presents many benefits over its pyrotechnic counterparts, including no expiration due to its easily replaceable lithium batteries – extending the environmental benefitsUnlike pyrotechnic flares, the ODEO SOS also removes issues of disposal as well as reducing potential fire hazards too.

“The extended operational life and powerful output significantly increases the chances of successful rescues”

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SHIP EDUCATION

KR has officially launched KRReal360, a 360° XR (eXtended Reality)-based ship education and training program that has revolutionised ship familiarisation training methods. KR-Real360 has been developed to provide users with the educational information necessary for ship operation and maintenance using the latest XR technology. Users can effortlessly locate educational resources, such as operation manuals, survey data, and checklists, available in diverse formats including images, text, PDFs, and videos within the ship’s virtual reality environment, crafted using 360° panoramic images. In addition, other convenient functions such as ship touring, XRdrawing matching, customised route setting and TTS (Text To Speech), which converts text to voice, are included, and they can be easily customised according to users’ convenience and preference. With the rapid pace of digitalisation and decarbonisation in the maritime sector, there is an increasing need for familiarisation training to keep pace with the constantly evolving onboard operation systems. It is expected that KR-Real 360 will be a useful tool to respond quickly to changes while significantly complementing the traditional ship education and training system.

TECHNOLOGY

SEA TRIALS SUCCESS

Validation of dynamic flights during sea trials of the Seawing system on the Ville de Bordeaux (Credit: PolaRYSE/Airseas)

KIM Daeheon, executive vice president of KR’s R&D division, comments: “We tried to make KRReal360 more real and vivid by showing the realistic appearance of ships. KR will work to provide the best technical support to assist the maritime industry in applying the latest technologies promptly in line with the digitalisation and decarbonisation trends.”

PUREMETRICS SOLUTION

Daphne Technology has announced enhancements for its innovative PureMetrics solution, which is an advanced system designed to directly measure and report real-time greenhouse gas (GHG) emissions. This approach eliminates the reliance on fuel consumption estimates, ensuring utmost accuracy and compliance with critical regulations such as the European Union Monitoring, Reporting, and Verification (EU MRV) and International Maritime Organization Data Collection System (IMO DCS). PureMetrics gained approval in principle from Lloyd’s Register in June 2023 at Nor-Shipping. PureMetrics continues to evolve with the integration of established systems

for reporting and verification. Users can now benefit from reporting to MRV and DCR (data collection and reporting) standards, ensuring compliance and transparency in emissions collection and reporting and enabling accurate estimation of the carbon intensity of goods transported by sea. PureMetrics-Compare, which allows users to combine noon reporting fuel consumption with direct measurement against current factoring methods. This is of great benefit to users as they will assess the baseline of other emissions, such as methane slip, typically unknown to users and only known to engine makers. The feature provides users with the ability to align the period selection on a timeline. For maritime assets, users can also view the location of the assets and where the most emissions are present, either at port or sea, in a timeline or a heatmap. Finally, PureMetrics-Optimize provides insights on the operational regimes of the machinery that contribute most GHG, positioning it as the go-to solution in the industry to select the best abatement and operational profile to minimise these emissions.

Airseas, a provider of wind propulsion systems for the maritime sector, has announced that its latest sea trials have revealed projected fuel and emissions reductions of 16% based on a normalised transatlantic voyage. These projections are based on traction data collected during the validation of automated dynamic flights of the Seawing, where the kite flies in figure-of-eight patterns to multiply the traction delivered to the ship, helping to reduce its fuel consumption and greenhouse gas (GHG) emissions. The 16% projected fuel and emissions savings were calculated from the tonnes of traction measured on the Seawing system during the final round of sea trials on the 5,291 deadweight tonne (DWT) roro vessel Ville de Bordeaux, owned by Louis Dreyfus Armateurs, during transatlantic voyages. This initial performance data is in line with the Seawing’s broader development roadmap aimed at delivering average savings of 20%. Crucially, the trials have also enabled Airseas to validate the technology’s automation system, which successfully controlled the Seawing’s dynamic flights without any human intervention. This builds on earlier technical achievements in the sea trials on the Ville de Bordeaux, including the validation of automated take-off and landing phases, the first traction flights with the kite in static position, and dynamic flights that increase the kite’s traction power. The next steps of the Seawing development roadmap will focus on delivering the kite’s full performance, with tests in ground conditions at Airseas’ new R&D centre in Dakhla, Morocco, as well as sea trials on a 211,982 DWT capesize vessel owned by Japanese shipowner K Line, which purchased five Seawings with options for up to 51 in total. Vincent Bernatets, CEO of Airseas, comments:“This latest milestone is yet another demonstration of our steady progress in bringing to life an entirely new technology that will play a vital role in shipping’s decarbonisation.

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TECHNOLOGY

“The maritime industry will need every available solution on the road to net zero, and our aim is to enable a greater number of shipowners to take control of their emissions by harnessing the free and widely available energy of the wind. “We look forward to the next stages of the Seawing development, focused on enhancing performance as we progress towards largerscale industrialisation.” Mathieu Reguerre, flying components project manager at Airseas, adds:“Validating automated dynamic flights is a huge technical achievement and a major milestone in the development of the Seawing. “We are pleased with our initial performance figures, which enable us to progress with the confidence that the system is working as planned, and that we are on track to deliver even more fuel and emissions savings as we fine-tune the system to optimise its performance.”

FUEL OPTIMISATION

ZeroNorth and Alpha Ori Technologies (AOT) have recently announced that they intend to join forces in an agreement that will create a leading maritime optimisation company and a new powerhouse in shipping’s digital transformation. Subject to regulatory approval, the two companies plan to generate synergies by combining Alpha Ori Technologies’ expertise in IoT sensors and high frequency data and ZeroNorth’s multi-service technology platform to create new sustainability solutions for shipping. The agreement will allow the two companies to serve their customer bases from a single offering and create a strong data ecosystem on one platform with multiple services within the market. The company intends to operate under the ZeroNorth brand and Søren Meyer, ZeroNorth’s current CEO, will remain at the helm of the joint set-up. Both of AOT’s current Co-CEOs, Bala Sankaran and Rajesh Unni, will become non-executive board members of the joint business. The two proposed partners already supply cutting-edge technology to more

than 4,000 ships trading globally. The agreement will enable customers to access 12 different services using one platform and one data source. This will help to significantly advance industry developments and policy efforts across the global trade value chain. ZeroNorth will interconnect data, providing collection, insights, and analysis, which will enhance quality and compliance for customers. By unlocking operational efficiencies and increasing reliability, customers will also benefit from cost savings, increased profits, and emissions reduction. The joint business will remain an independent company with robust financial backing and heritage from top industry leaders, leveraging their deep shipping knowledge to deliver transformative solutions that positively impact the sector. The company will retain its global office presence, headquartered from Copenhagen, and a combined workforce of 780 people, approximately one third of whom are full-time consultants, will work together. Speaking on the announcement, Søren Meyer, CEO, ZeroNorth, says: “I am delighted to be able to announce this agreement with Alpha Ori Technologies, which we truly believe represents the exciting next step in shipping’s digital and sustainability transformation. This is a strategic move that will not just benefit our customers, but the sector as a whole. It will enable us to serve the industry as its leading maritime optimisation provider of choice and underlines our commitment to bettering both profit and planet. “ZeroNorth and Alpha Ori Technologies chose each other because of our shared values and common mission to drive impactful change for shipping and the wider global trade value chain. The combined ecosystem that this partnership will create will enable us to touch from shore to ship and back to shore. “It will accelerate our technology development, strengthen our innovative mindset, and enable us to continue to help our customers focus on profit and planet in an increasingly complex and volatile world.”

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Bala Sankaran, Co-CEO, Alpha Ori Technologies, adds: “Joining forces with ZeroNorth secures a market leading position for our companies, and enables us to propel the industry towards greater profitability and sustainability outcomes. We believe that this is the perfect time for us to scale and do bigger things together, and this agreement is perfectly in line with our ambition to drive sustainability, performance, and business results for our customers.”

EMISSIONS SIMULATION

NAVTOR is aiming to simplify carbon intensity indicator (CII) compliance with the latest release of its NavFleet ship operations platform. Featuring an advanced emissions simulator, designed to help shipping companies predict and optimise environmental impact and performance across entire fleets, NavFleet 1.8 delivers operational insights built on high-quality, dualvalidated data. The result, says Tor Håkon Svanes, product manager NavFleet, puts users one step ahead of both regulations and commercial competition. “In a maritime industry defined by ever-increasing complexity, we want to simplify safe, compliant and profitable operations for our customers,” he comments. “The emissions simulator, and the accompanying NavFleet 1.8 updates, demonstrate that commitment in practice. This is another user-focused innovation that, we believe, delivers powerful benefits for our industry.” The simulator is both simple and smart. It draws on data ranging from vessel noon reports to integrated e-Navigation and performance data – all of which is computer- and humanvalidated by NAVTOR specialists – to gauge vessel and fleet historical emissions and model them for future predictions. Parameters can be easily changed, and individual vessels compared, to give detailed insights into how assets will perform and, given the dynamic nature of CII, what ratings they can expect to achieve over coming years.

AI EMISSIONS AID

Artificial Intelligence can help cut huge amounts of emissions from shipping. A new project, GASS, led by NAVTOR, with six other Norwegian research, innovation and industry partners, has been awarded 44 million Norwegian kroner to develop new commercial AI-enhanced technology and services to optimise the energy usage of vessels and ships. Today, there are no systematic data‐driven solutions for improving energy efficiency onboard, mainly due to the complexity of ship operating environments, as well as the high complexity of data processing, such as AIS data, which is often incomplete and unreliable. Norwegian Minister of Trade and Industry Jan Christian Vestre revealed recently that Green AI for Sustainable Shipping (GASS) is one of nine green projects to receive funding through the Norwegian Government’s Green Platform scheme. “The Green Platform’s objective is to accelerate the green transition in business. There is incredibly exciting progress, and the support we are providing to these major projects is a significant contribution to the government’s goals for green transition and business growth,” says Minister of Trade and Industry Jan Christian Vestre. “NAVTOR considers this a significant step forward in our efforts towards sustainable shipping. We incorporate a great amount of data from vessels and combine these with a digital twin to develop services that can monitor, analyse, and optimize fuel consumption,” comments Bjørn Åge Hjøllo, Chief Sustainability Officer at NAVTOR.

TECHNOLOGY

Partners NAVTOR AS, Grieg Star AS, Maritime CleanTech, Scandinavian Reach Technologies AS, Simula Research Laboratory AS, SinOceanic Shipping AS, and Sustainable Energy AS are eager to start on the project, which will enable vessel owners and operators to reduce greenhouse gas emissions and contribute to the green transition by enhancing vessel performance to maintain competitiveness and comply with new regulations and agreements.

BLUE CONNECT

Bureau Veritas has granted an Approval in Principle to Greek company ERMA FIRST for its Blue Connect system, a high voltage alternative maritime power solution that can be housed in a 40ft container. ERMA FIRST’s system, which can be housed in a container or provided in a stand-alone configuration, enables most ships to connect with different shore power systems based on their required power. Blue Connect can be plugged into a port’s infrastructure (external connection) and to a vessel’s electrical grid (internal connection). Connection to shore power will be a requirement for containerships and cruise ships in European ports from 2030 and may be demanded by other customers looking to eliminate or reduce emissions while in port. The Blue Connect system has been designed for a specific maximum load capacity according to individual vessel specifications and to meet specific port requirements. This provides maximum flexibility for access to shore power while at berth. High voltage shore connection (HVSC) equipment can either be standalone or included in the 40ft container.

NAVTOR secures 44mn NOK funding for AI-Research project within sustainable shipping. From left: Steffen Helgeland, Olga Kvitsinskaia, Sergey Mukhin, Jeaneth Nodland Andreassen and Bjørn Åge Hjøllo, Chief Sustainability Officer NAVTOR

Bureau Veritas has confirmed that the Blue Connect HVSC system meets its requirements for safety, including structural integrity of the containerised ‘box’ containing the connection system, allowing the unit to be stored on a ship’s deck and deployed when required. Athens-based Paillette Palaiologou, Vice President, Marine & Offshore for Bureau Veritas, said: “It’s always a pleasure to be able to support innovation – and for us, based here, to support innovation in Greece. Our approval helps enable the rapid application of the Blue Connect solution by providing the confidence that our classification requirements for safety and performance will be met.” Konstantinos Stampedakis, CoFounder & Managing Director of ERMA FIRST, said: “We are delighted to receive this Approval in Principle from Bureau Veritas, which confirms that Blue Connect’s safety and operational profile meets the in-principle expectations of the classification society. Developing solutions that not only protect the environment, but also have a positive impact on our customers’ operations has always been a priority for ERMA FIRST.” Theodosia Digalaki, Technical Product Manager at ERMA FIRST, said: “Blue Connect is a highly advanced shore power solution than can significantly reduce emissions in ports and enhance CII ratings for ships. Throughout the development process, flexibility, reliability and safety were key priorities and we are pleased that the exhaustive approach taken by ERMA FIRST has been recognised by Bureau Veritas through the award of this AiP.”

Left to right, Konstantinos Stampedakis (ERMA) and Vassilios Dimoulas (BV).

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TECHNOLOGY: VIEWPOINT

How AI provides a valuable opportunity for the industry by providing accuracy – whatever the weather

THE HIGH-DEFINITION REVOLUTION

Angus Whiston, Communications Director, DeepSea Technologies

There is a huge opportunity hiding at the heart of the shipping industry: overcoming inaccuracy and converting it directly into CO2 and fuel savings. A lack of visibility and analysis of vessel behaviour currently means that fuel overconsumption is effectively guaranteed for every voyage. However, the “high-definition revolution” is here and will quickly become industrystandard. Forward-thinking shipping companies are already reaping the benefits of this approach and claiming the commercial advantage that’s on the table. With shipping’s inclusion in the EU’s Emission Trading Scheme (ETS) ringing in a price on carbon from January 2024, the commercial incentive to optimise voyages, but also to understand and use highfrequency data to generate efficiencies, has never been more obvious. It’s well-known that the lowest-hanging fruit when it comes

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to boosting vessel efficiency – both from a cost and implementation point of view – is to focus on voyage planning, most of which is still completed using decades-old processes. The truth is that most companies still don’t really understand how their ships behave. DeepSea recently conducted an industry survey of ship operators, and in both good and bad weather, most respondents (56%) said that they understood their vessels’ behaviour “quite well” (“not very well” was only 31%). Similarly, most respondents said their fuel consumption predictions were “somewhat accurate” (70%), versus “very accurate” (25%). Yet 70% of respondents stated this information was either “very” or “quite” important to their overall voyage planning operation. When asked about the accuracy level of these behaviour or consumption predictions,

the median answer was 85% accurate. Intelligent voyage planning needs to take vessel behaviour into account, but with this level of accuracy a truly optimised outcome is impossible to achieve (except for by accident). That 15% inaccuracy can be responsible for more than $10,000 of unnecessarily burned fuel a day for a VLCC, which is hugely significant. Contradictory as it may seem, these numbers are in fact good news, due to the opportunity and sheer volume of latent efficiencies that they represent. Tackling this awareness will enable shipping to make a significant leap forward in voyage efficiency, both quickly and cost-effectively. Therefore, we urgently need a high-definition revolution in shipping. We must move from a general understanding of fuel consumption in good weather to pin-sharp predictions encompassing every potential set of vessel and voyage conditions. How do we move from an 85%-accurate understanding of vessel behaviour to 99%+? The incentive is there (thousands of dollars saved

TECHNOLOGY: VIEWPOINT

“We must move from a general understanding of fuel consumption in good weather to pin-sharp predictions encompassing every potential set of vessel and voyage conditions”

every day) - and the data is there (sensor data is increasingly streamed back to shore in real-time). However, interpreting the volume of data is practically impossible for people. That’s where artificial intelligence (AI) can help. In fact, this is a perfect use case for AI – taking a mountain of interrelated data and turning it into a model that can be used for realworld decision-making. An advanced modelling process such as DeepSea’s is even able to disentangle the different components that contribute to a particular outcome: at any particular point, how much fuel consumption is due to the wind, the waves, the swell, the speed, the draft, etc. Only when calculated with this information can any voyage plan be called truly optimal. Shipping companies are only beginning to realise the power of this information, but over the coming years, we see that this approach will become industry-standard, saving millions of tonnes of fuel in the process, with very little overhead. The revolution will not be in metal but in silicone.

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DECARBONISATION

One company’s decarbonisation efforts have been recognised with a prestigious award

WINNING WAYS Svitzer has been awarded Mersey Maritime’s Net Zero Award, the company recently announced. The accolade, which was presented during Mersey Maritime’s annual Industry Awards in Liverpool Cathedral, recognises Svitzer’s comprehensive strategy for delivering more sustainable towage operations through behavioural change, equipment development and alternative fuel implementation. Svitzer is implementing a decarbonisation strategy that aims to reduce the carbon intensity of its operations by 50% by 2030, and that will see the company reach carbon neutrality by 2040. The company’s decarbonisation strategy has included an initiative encouraging tug masters to ‘Aim for 8’ and stay below eight knots when mobilising and demobilising to and from tug jobs. This operational change has reduced fuel consumption and avoided the emission of 1,150 tonnes of CO2 equivalent. In addition, by working with original equipment manufacturers, Svitzer has been

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able to redesign drive train systems to optimise engine loads and fuel consumption for a given power requirement. The company is also set to launch its first ever TRAnsverse tug, created in collaboration with the naval architect Robert Allan. Analysis indicates that the new design can bring significant fuel savings compared to conventional tugs. Michael Paterson, Svitzer managing director UK, says: “We are thrilled to win this award and to receive this recognition from Mersey Maritime and the community the organisation represents. “At Svitzer, we recognise we have a leadership role to play in helping the developing supply and use of low-carbon technologies in our local port communities, with the goal of delivering a cleaner port environment for the whole community. “We are committed to implementing our strategy on decarbonisation and delivering more sustainable marine services for our customers and partners in and around the ports.”

DECARBONISATION

In addition to behaviour change and technology development, Svitzer has a clear fuel transition strategy, working with engine manufacturers to ensure the company’s vessels can operate using biofuels. Svitzer has converted its UK fleet, in Merseyside and elsewhere, to run on hydrogenated vegetable oil, a carbon-neutral substitute for traditional marine fuels. The company is also continuing work to develop the use of another biofuel known as FAME in its vessels. Meanwhile, Svitzer is also working with engine and vessel designers to develop tugs that will one day run on green methanol, producing net-zero carbon emissions as well as minimal local air pollutants such as sulphur and nitrogen oxides and particulate matter.

RISK REDUCTION

Svitzer Elisabeth in Liverpool

Micahel Patterson and Jennifer Beswick of Svitzer receive award from Mersey Maritime (L-R, Professor Mark Power, Michael Patterson, Jennifer Beswick and Sam Quek)

The Insurance Development Forum (IDF), a public-private partnership led by the insurance industry and co-chaired by the UN, the World Bank, and other international organisations, recently announced the results of its Anticipatory Action (AA) and Disaster Risk Reduction (DRR) Initiative, in partnership with MapAction and Start Network. As climate change threatens all countries, communities and people around the world, increased adaptation action as well as enhanced efforts to avert, minimise and address loss and damage are urgently needed to reduce and respond to increasing impacts, particularly for those who are least prepared for change and least able to recover from disasters. Launched in 2021 to accelerate anticipatory action and risk reduction in seven crisis-vulnerable countries with the aim of reducing the impact of disasters on individuals and communities, Phase 1 of the AA and DRR programme delivered clear impacts, setting the stage for further ambition and scale in upcoming Phase 2. The initiative also represents the IDF’s and Start Network’s commitment to the Risk-informed Early Action Partnership (REAP), of which they are members, and is managed under the IDF’s Disaster Risk Reduction programme.

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DECARBONISATION

Anticipatory Action and Disaster Risk Reduction Initiative: Phase 1 highlights include: » Seven country missions complete » 13 MapAction Geospatial Information Management (GIM) experts engaged » Over 150 community leaders trained in GIM » Progress made on seven critical data projects During Phase 1, MapAction and Start Network worked in close collaboration with local partners in Nepal, Bangladesh, the Philippines, Zimbabwe, the Democratic Republic of the Congo (DRC), Senegal, and Madagascar to build capacity, and break down both technical and process barriers in the use of GIM. Building trust and exploring the GIM vista in each country has revealed a wide range of opportunities and enabled collaborative work to address tactical data issues that affect anticipatory action and DRR projects across these seven countries. A significant part of the work undertaken in Phase 1 was the delivery of GIS training for AA and DRR professionals. This has been well received and there is keen appetite for further bespoke training. This effort is supported and funded by the IDF through seven member companies: AON, AXA, AXIS Capital, Milliman, Swiss Re Foundation, WTW, and Zurich Insurance.

ENERGY SAVINGS

W&O Supply and Broen Clorius Controls have announced a partnership on optimisation projects related to energy savings and CO2 emission reductions within the marine segment. This means that W&O Supply will add low-leakage valves to its portfolio of marine valves, actuated valves, pipes and engineered solutions. The low-leakage valve will help vessel owners and operators in the international maritime industry to reduce their carbon emissions. The new product is an ultra-low leak three-way valve especially

designed for HT-systems on 2-stroke main engines. It increases system efficiency, helping save fuel and reduce CO2 emissions. Compared with most valves, which have a typical leakage of 2% or more, the new valve offered by W&O Supply has a leakage rate of less than 0.01%. The valve controls the temperature in the HT-system of the main engine, which must be kept warm when not sailing and needs to be kept cool during normal operations The Clorius low-leakage valve from W&O Supply, with its compact design, offers easy, time efficient replacements. The valve can be used on vessels to replace largersized, existing valves. Retrofit and replacement can be done without the need to modify existing pipe work. Valve replacements can also be done in location at ports, without the need to dry-dock vessels. Lower replacement costs create value for valve customers who can also futureproof their assets

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while saving energy and reducing CO2 emissions. Kristof Adam, managing director of W&O Europe, says: “W&O Supply is committed to helping its clients reduce greenhouse gas emissions with the right marine valves and fittings. We are delighted to bring this valve to the marine market. We think it is a valuable piece of the decarbonisation puzzle, helping vessel owners and operators to minimise their carbon emissions. “W&O Supply warehouses are strategically located across the globe to support the engineering teams of our customers, to listen to the challenges they face and offer ideas and advice on the best products for the solutions they design. The low-leakage valve is a great addition to our product catalogue. It demonstrates our commitment to supporting our clients with our knowledge and expertise in the continually changing maritime industry.”

TOUGH TARGETS

Industry leaders have been told achieving environmental targets in ocean freight shipping requires major efforts and investments. The reminder came during the annual Xeneta Summit recently in Amsterdam, which saw key industry figures come together to discuss the major issues facing ocean freight shipping. Rolf Habben Jansen, chief executive of Hapag Lloyd, delivered a keynote speech to delegates during which he emphasized the necessity for the industry to further step up their efforts. He said: “Shipping remains the most cost-effective and eco-friendly mode of transport, but the industry is highly volatile and cyclical. “After some exceptional years, we have returned to rougher seas, with low freight rates and imbalances between supply and demand impending. “Aspects such as maintaining a competitive cost position, making sensible investments for better market access, and delivering high quality will become even more important. “And so will decarbonisation – despite rising funding costs and the question of alternative fuel availability, the sector must prioritise cleaner practices and lower-emission transport solutions. This will require we invest in and form partnerships to help scale up especially the production of green fuels.

DECARBONISATION

“After all, sustainability is a collective task and together we can move faster than alone.” This year’s summit follows the release of Xeneta’s Ocean Freight Shipping Outlook 2024, which branded the current market as “unsustainable”. Combined with the impending introduction of the EU Emissions Trading Scheme (EU ETS) and more stringent application of the IMO’s Carbon Intensity Indicator (CII) in 2024, it is unsurprising the green agenda topped the bill during the Xeneta Summit. Patrik Berglund, Xeneta Chief Executive, told delegates he believes carbon emissions targets are unrealistic in the current financial climate. He said: “In the decade prior to covid-19 ocean shipping liners hardly made any money and there was massive consolidation in the industry. Then during the pandemic, they made a fortune in the space of a couple of years. “Now we’re asking them to risk all that financial security by investing vast sums of money on the infrastructure needed to achieve carbon emissions targets. “History tells us that is a colossal risk to take on when you consider there are absolutely no guarantees the currently unsustainable market will turn in the favour of the ocean shipping liners.”

Berglund echoed comments that were made by Jansen regarding collective responsibility and warned shippers they will have to pay their way if they want to have a greener future. He said: “Currently, shippers are saying they are going to pay so little to transport their goods around the world that the ocean shipping liner companies will lose money. Then in the next breath they are asking those same companies to invest staggering sums of money on new, climatefriendly vessels. “Unfortunately, the harsh reality of business will always prevail and environmental responsibilities will be cast aside in favour of financial sustainability. “Everyone has good intentions when it comes to protecting the environment, but no one is prepared to pick up the bill. Without a change in attitudes the carbon emissions targets are doomed to failure.” Delegates at the summit discussed ways for the industry to move forward, including the introduction of index-based pricing. Berglund added: “Index-based pricing instruments could provide greater transparency and fairness from a shipper perspective and hedge some of the risk from an ocean shipping liner perspective, so they feel more able to invest in the future.”

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SHIP DESIGN AND EFFICIENCY

A host of collaborations and new initiatives are making a major impact on ship design and performance

SSI ShipConstructor has been selected by Incat to support structural modelling for two hull modules of Hull 096

ALL IN THE DETAILS SSI will supply its ShipConstructor design and modelling solution to Tasmania’s Incat shipyard. The system has been selected by Incat to support structural modelling for two hull modules of Hull 096, a 130m battery-electric ro-pax catamaran under construction for Buquebus of Uruguay. Incat and its partner Revolution Design chose SSI’s ShipConstructor system, the SSI design and engineering solution, to deliver specific benefits for this complex project, including centralised data management, automation and standardisation of design outputs, 3D visualisation on the shop floor and improved materials tracking. The project also includes delivery of a digital twin, created from data held within ShipConstructor, to facilitate a clear overview of vessel configuration, supporting efficient operations and lifecycle maintenance. Hull 096 will be the world’s largest 100% battery-electric ferry, featuring an energy storage system of 40MWh, four times

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larger than any previous marine battery installation. The batteries power a series of electric motors which drive the water jet propulsion system. The electrical system integration is by Wärtsilä and ESS by Corvus Energy. Incat is adopting ShipConstructor with the project already in progress, underscoring to its belief that SSI can successfully deploy the solution, train and support shipyard personnel at high speed across relevant teams. Incat anticipates that all primary structures of its next shipbuilding projects will be developed using the SSI shipbuilding system. “Incat has always been an innovator and once again we are demonstrating our approach to advanced technology solutions by adopting ShipConstructor to support this complex project,” says Stewart Wells, Incat technical manager. “SSI demonstrated an understanding of our challenges and how to effectively manage the design, modelling and data handling processes across all departments and disciplines.”

SHIP DESIGN AND EFFICIENCY

“Success with complex shipbuilding projects like Hull 096 calls for smarter information sharing across the shipyard, reducing waste and costs and generating a digital twin that can sustain lifecycle operations,” says Simon Crook, solutions specialist, SSI. “This contract lays the foundation for a long-term relationship between SSI and Incat and demonstrates confidence that Incat’s engineers will have success with the new tool in a production environment from day one.”

LINKING TO LEARN

Clean technology company Silverstream Technologies and marine engine designer MAN Energy Solutions have signed a collaboration agreement to support the decarbonisation of the global shipping industry. The agreement will explore solutions for improving vessel efficiency spanning both newbuild installations and retrofits. With approximately half of the world’s commercial ships powered by MAN Energy Solutions, the collaboration will help further accelerate the adoption of

Silverstream’s proven air lubrication technology, the Silverstream® System, across the global fleet. Silverstream’s technology releases a uniform carpet of air to reduce the frictional resistance between the hull and the water, cutting average net fuel consumption and GHG emissions by 5-10%. While the air lubrication system is applicable to all shipping segments and is effective in all sea states, it is especially effective on large oceangoing vessels due to the size and shape of their hull. MAN two-stroke engines are the preferred choice of propulsion for these commercial vessels. Bjarne Foldager, Head of Two-Stroke Business, MAN Energy Solutions, said: “There are many different ways to approach net zero and MAN Energy Solutions is happy to work with likeminded industry partners in this pursuit. “Decarbonising the marine segment is a giant task, but Silverstream, with its innovative technology, displays great potential in this regard. I’m certain that this agreement will deliver interesting insights and, crucially,

concrete proposals to further our mutual aims.” Noah Silberschmidt, founder & CEO, Silverstream Technologies, commented: “It was a pleasure to meet up with our new partners at MAN Energy Solutions this month at the Global Maritime Forum in Athens to sign this important agreement. “Shipping must rise to the challenges of decarbonisation, new regulations and increasingly complex fuel economics. In collaboration with MAN ES, we are leading the way to the cleaner, greener vessels needed to achieve the International Maritime Organization’s carbon reduction targets; pursuing the mantra that the greenest fuel is the fuel that you do not use.” As of October 2023, there are 180 vessels contracted to have the Silverstream® System installed across all of shipping’s major segments, with 50 installed on ships in-service today. Silverstream’s customers include MSC, Maersk, Grimaldi, Shell, Vale, Carnival and ADNOC L&S, among other major industry names. Many of these customers are signing fleet-wide deals for the technology. This market interest is driven by the fact that the system represents a proven lifecycle solution for efficiency, with class-approved components that are designed to last the lifespan of a vessel. The commercialisation and scaling of air lubrication technology, which this collaboration agreement fully supports, helps to solve the fundamental challenge of vessel design efficiency.

LNG CARRIER INITIATIVE

Noah Silberschmidt, founder and CEO, Silverstream Technologies (left) and Bjarne Foldager, head of two-stroke business, MAN Energy Solutions

Kawasaki Kisen Kaisha (K LINE) and Kansai Electric Power (KEPCO) have jointly studied optimal marine transportation and storage schemes for liquefied CO2 from KEPCO’s thermal power plants to develop the carbon dioxide capture and ctorage (CCS) value chain since signing a memorandum of understanding on January 19, 2023. Having completed an initial joint study on liquefied CO2 shipping, the two companies have now entered into

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SHIP DESIGN AND EFFICIENCY

a service agreement to study feasibility related to the liquefied CO2 carrier’s design involving domestic and foreign shipyards. This detailed study, which includes design development by shipyards, is ahead of the initiatives of other CO2 emitters. Based on this Service Agreement, K LINE and KEPCO will study and develop optimal specifications for liquefied CO2 carriers and aim to realise liquefied CO2 marine transportation. K LINE and KEPCO are accelerating actions toward the realisation of a zero-carbon society through detailed research and the implementation of studies toward the delivery of a liquefied CO2 carrier that will play an important role in the CCS value chain.

JOINT DESIGN AGREEMENT

Anemoi Marine Technologies has entered into a Joint Design Cooperation Agreement with HudongZhonghua Shipbuilding Group for the design of rotor sails onboard two liquefied natural gas (LNG) carrier newbuildings.

The deal was signed between Nick Contopoulos, chief operating officer of Anemoi, and Wang Jiaying, director of research and design department from Hudong-Zhonghua, at DongHua Technology Building. As part of the agreement, Anemoi will assess the feasibility and design of rotor sails for installation on LNG carriers and develop relevant specification requirements and designs that can be used for future installation projects in order to meet current and future environmental targets. In addition, this project is hoped to boost the confidence of rotor sail technology for gas carrier owners and enable the smooth introduction of a new generation of efficient and environmentally friendly LNG carrier design. “We are pleased to be working closely with Hundong-Zhonghua Shipbuilding Group to develop practical designs and specifications for rotor sails onboard LNG carriers,” says Contopoulos.

“With more stringent requirements related to emissions from shipping coming into force, combined with a pressure to protect the environment, ship owners are seeking practical technology that can be easily installed onboard vessels to improve their energy efficiency,” he continues. “Anemoi has been developing industry leading wind propulsion technology for years and this new venture is the next step in Rotor Sails becoming a critical component of shipping’s decarbonisation journey.” Rotor sails are ideal for modern LNG carriers due to the large amount of available deck space and limited impact on cargo operations. The use of rotor sails provided by Anemoi has increased in recent months as shipowners look to make significant fuel and emission savings from their vessels by harnessing renewable wind power during voyages. In May, Anemoi announced it was on track to have a production capacity to install up to 50 rotor sails a year by the end of 2023 due to growing demand for the technology.

Pictured, left to right: HZ deputy director of general office SRDD Long Chan, Anemoi COO Nick Contopoulos, HZ director of research and design department Wang Jiaying and Anemoi China general manager Shuai Ping. (Credit: Anemoi Marine Technologies)

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REGULATION

The shipping industry is facing many regulatory challenges, including the implementation of the EU Emissions Trading Scheme

RULES OF ENGAGEMENT The challenges of the EU Emissions Trading Scheme (ETS) are certainly causing issues for the shipping industry. Here, two industry experts give their thoughts on the complexities of the EU ETS with an in-depth look at the regulatory horizon, allied to a clear lowdown on how shipowners and operators can mitigate risks, manage costs and comply. Jacob Clausen, performance director, NAVTOR The EU ETS for shipping landed with a colossal splash on 16 May this year, when it was officially adopted and finalised. But it won’t be until 1 January 2024 that the industry feels the true ripple effects. So, is it time for owners and operators to batten down the hatches, or will adequate foresight and planning ensure these ripples don’t turn into tsunamis? What is it? First, it’s important to recognise that the EU ETS isn’t new. The measure, which is

seen as a key enabler in the body’s drive to become carbon neutral by 2050 (with a 50% reduction in greenhouse gas emissions by 2030), was introduced in 2005 and already covers thousands of installations, such as power stations and chemical plants, in addition to airlines. In this sense it is tried and tested. Essentially it works as a market-driven system that creates financial incentives for businesses, in this case shipping, to reduce emissions and transition to more sustainable practices. It does so by requiring a ‘shipping company’ – which can be the owner, manager or bareboat charterer – to buy Emission Allowances, with each allowance covering one ton of CO2e emitted from 2024. In 2026, the scheme will be expanded to include CH4 (methane) and N2O (nitrous oxide) emissions. As such it introduces the concept of carbon pricing for maritime operations to and from EU ports – obliging companies to pay for their emissions and thus encouraging them to reduce carbon footprints.

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How does it work? The ETS is based on a cap-and-trade principle, limiting the total amount of greenhouse gas emissions in the system, ensuring companies can’t just ‘buy themselves out of trouble’ by paying for ever-increasing pollution. Over time, the cap will be reduced, with the cost of allowances rising. The ‘trade’ element refers to the fact that allowances can be bought via official auctions or through spot, futures and options, with trading on exchanges such as ICE, EEX and Nasdaq. In this respect, companies have an opportunity to optimise their costs by buying (and potentially selling) at opportune times. The need for allowances is worked out according to EU MRV reporting, presented to the EU by March (the following year) with the correct number of allowances then required to be submitted by the end of September. Be warned: A failure to do so will incur heavy financial penalties. In a bid to ease the implementation of what many see as a ‘watershed’ regulation (others may use less charitable language), the EU will only require allowances for 40% of verified emissions in 2024, rising to 70% in 2025 and 100% in 2026. What can you do? First, get solid foundations in place. An advanced fleet and vessel monitoring and management solution will allow you to ‘know your ships’ inside-out, automating the collection of critical data and giving you (literally) priceless insights into real-time operations. This will allow you to constantly monitor, trouble-shoot and optimise performance, empowering decision making that delivers both environmental and business benefits. On single ships this can potentially slash the need for allowances, while across fleets it could be transformational. Such systems should also cover your reporting needs. This delivers efficiencies in terms of automating tasks, and reducing human error, while ensuring that the data delivers an accurate picture of performance to regulators. With this in mind, validation is key.

Here at Navtor we’d recommend a dual validation process, with your specialist software of choice backed up by human validation from subject matter experts. It pays to be thorough when any deviations from compliance come at such a cost. How can you minimise risk and financial exposure? When you have optimal foundations in place you can look at building the best strategy for your business. Establishing an overview of your forecasted allowances for the year ahead will allow you to understand your potential exposure, from which – perhaps in consultation with experts – you can define a sourcing strategy that allows you to optimise costs (buying and selling at the right time, across the right channels). Alternative fuels are also a key consideration, with the cost of allowances potentially making biofuels, which on the face of it are more expensive, much better value for money (due to lower carbon factors). And remember, your monitoring and management solution will allow you to regularly update your emissions profile, potentially helping you reduce your need for allowances. Finally, it makes sound financial sense for owners to maximise the time their vessels spend under time charter, allowing them to pass the cost of allowances on to the charterer. On that note… How can owners redeem allowance costs from charterers? It’s not vessel ownership that matters when it comes to paying for allowances, but rather which party provides and pays for fuel. Owners therefore need to ensure they deliver reliable, validated vessel emissions data to charterers in a timely manner (BIMCO proposes a clause whereby owners provide this within the first seven days of each month, covering the previous month’s allowance requirement). But, to do that, we come back to the need to have a robust, reliable, real-time monitoring and management system.

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This will create true transparency, and therefore trust, with regards to ongoing emissions data, monitoring progress (issuing statements under voyages and time charters) and ensuring allowances are transferred in accordance with requirements. There should be no room for argument with a system that, although complex at first glance, is based on pure, hard data. That is, of course, as long as you have high-quality data in the first place! Smooth sailing into 2024, and beyond Although the introduction of regulations that potentially incur significant costs may not be universally applauded by the industry, it really does pay to see the bigger picture here. The most important factor, naturally, is that we need to take action to reduce emissions and mitigate climate change. In this respect, any tool that incentivises businesses to do so is a step in the right direction. However, we shouldn’t lose sight of the commercial opportunity here, too. With careful monitoring, management and informed decisionmaking compliance can come with a benefit rather than at a cost – paving the way for reduced fuel expenditure, more efficient energy use, and a strong business, rather than purely environmental, case to transition to more sustainable practices. Time will tell how effective the EU ETS proves to be. But with the right, informed strategy in place, it needn’t be something to be feared, but rather welcomed by shipping industry stakeholders, as well as the rest of society. Albrecht Grell, co-managing director, OceanScore In 2022, the maritime industry generated CO2 emissions of 126m tonnes from voyages to, from, between and within European ports that would have resulted in the need to surrender 82.7m EU Allowances (EUAs), or carbon credits, under the EU ETS, equating to a total cost of €6.5bn based on the current price of €78 per EUA that corresponds to a tonne of CO2.

This figure is based on full implementation of the EU ETS in 2026 after a three-year phase-in period, with 68% of emissions last year generated on voyages into or out of EU ports, which will incur costs for 50% of emissions, and the remaining 32% between or within EU ports that are liable for 100% of emissions. Counting costs for ship segments Container shipping, not surprisingly, will account for the largest part of the industry’s total emission costs at around 28%, followed by the ro-pax segment with 14%, while bulk carriers and tankers are set to carry around 11% apiece, according to OceanScore analytics based on EU MRV data. However, on a per-vessel basis, it is cruise and ro-pax ships that will have to bear the largest burden with annual EUA costs for the respective vessel type estimated at €2.8m and €2.5m. By contrast, the average bulker – while being the largest segment with 30% of all vessels in the EU ETS regime – will only see EUA costs of €208,000 annually. The sheer size and hotel load of the cruise sector and the deployment patterns and speeds of ro-paxes have a significant impact on their carbon footprint, with these vessels accounting for nine out of 10 of the top contributors to emissions under the EU ETS with over 100,000 tonnes of CO2 per vessel annually. The highest emitter in European waters is a cruise vessel with 134,000 tonnes of CO2 emissions per year. At a country level, given fleet structure and typical voyage patterns, the shipping industry in Turkey, for example, would be required to buy and surrender EUAs for a total of €200m, which translates into nearly €400,000 per vessel. Mitigating EUA liabilities Each shipping company, as the Document of Compliance holder or vessel owner (EU regulation on the ETS responsibility is still in the process of being finalised), must determine the volume of EUAs to be purchased and surrendered to compensate for its emissions in any given year based on MRV data. The overall cost will be

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largely dictated by the EUA price that historically has proven highly volatile. While it has dropped to €78 in recent weeks, the price is set to be driven upwards over time due to high demand and an annual 4.3% reduction in the number of available allowances under the cap-and-trade system, incentivising investments in efficient operations, carbon reduction technologies and alternative fuels. Furthermore, there is the risk of penalties for failing to surrender the required number of EUAs, with a fine of €100 per allowance in addition to the cost of acquiring additional EUAs to make up the shortfall. Failure to comply on any vessel for more than two years running could risk an EU trading ban for the entire fleet. A key factor for shipping companies in tackling EUA liabilities and risks is an efficient EU ETS management system with accurate tracking of emissions data, both to determine the correct volume of allowances required – also covering for offhire and periods of unemployment, as well as considering all the exemptions, discounts and regulatory details – and ensure correct allocation of EUAs to charterers (based on the EU’s ‘polluter pays’ principle) and owners with proper monitoring of all EUA provisions, open positions, and so on. Risk of disputes A solution to efficiently manage these processes and assure transparency and control is a vital prerequisite to mitigating the inherent risks of the EU ETS regulation to a shipping company. Any such system will need to be based on solid data to reduce the risk of disputes between charterers, owners and managers. A whole range of solution providers have sprung up recently, from MRV verifiers to vessel performance management solutions providers to consultants. Most of these systems provide data at a level of granularity and data quality that can serve as input into an integrated ETS management process, with solution-specific issues remaining to be compensated for. Shipping companies will need to set up so-called Union Registry accounts to

receive, buy and manage EUAs, and to later surrender them to the respective authorities. Setting up these accounts as well as getting access to EUA trading solutions via banks or brokers will be necessary. This requires having EUA accounts in Europe and monitoring these, putting in place an EUA trading solution and managing potential disputes in the process. Clearly, reducing emissions at the operational level is another means of cutting EUA costs exposure but the industry has so far been able to make lacklustre progress in this area, with a reduction of only 0.14% for ships in EU waters since 2021, driven by fewer vessels sailing fewer nautical miles. Emissions per nautical mile actually increased by 3.09% last year, driven by changing operational patterns and higher speeds in some segments – outweighing the many efficiencyoriented measures put in place in recent years. Still, emissions of 411 tonnes of CO2 per 1000 nautical miles are way below any alternative transport option, testament to shipping’s efficiency. Shift in right direction In the bigger picture, the EU ETS appears well designed and is leading shipping in the right direction. The current price of EUAs adds more than 50% to the cost of bunkers. As a result, the competitive advantage with newer, more efficient tonnage versus less efficient tonnage will increase, impacting the chartering market, the second-hand market and deployment patterns. The upcoming regulation will enhance business cases for energysaving projects, improved operations and, in the long run, for cleaner fuels. Analysis indicates that shipping companies are correctly focusing on increased efficiency, making fears of substantial evasive behaviours seem unjustified, so far at least. The EU ETS regime will further accelerate the trend towards digitalization and data transparency. In the end, the winners in the EU ETS regime will not be those able to buy EUAs at a 10cts discount but those that are able to efficiently manage their related processes and risk exposure.

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WATCHKEEPING REVIEW

The Marshall Islands register has issued a marine safety advisory which shares important observations and lessons learned to improve navigational watchkeeping. They are based on a review conducted by the Republic of the Marshall Islands (RMI) Maritime Administrator into 11 collisions involving RMIregistered vessels. The collisions occurred between 2018 and 2023, were determined to be very serious marine casualties, and resulted in the loss of 20 lives and nine vessels. The advisory says that Officers of the Watch (OOWs) must always remember that their primary responsibility is ensuring the safety of the lives on board the ship and those at sea. They must also ensure they are always supported by other bridge watchstanders. Bridge watchstanders must maintain high standards by validating and constantly checking their performance and engaging with them to ensure shared understanding of the navigational situation; and never hesitate to call the Master for additional support and advice. Masters are ultimately responsible for ensuring their ship is navigated safely and should not prioritise other tasks on board over adequately supporting the OOW during all conditions of navigation. They must continually train bridge watchstanders for different conditions of navigation, must not compromise bridge watchstanding resources when planning work activity on board, no matter the urgency and must ensure that between sunset and sunrise, in addition to an OOW, a lookout is stationed on the bridge, at a minimum. They must hold bridge watchstanders accountable by keeping standards high, constantly validating and checking safety of navigation, and engaging with them and also ensure that bridge watchstanders understand that any deviation from COLREGS, regulations, rules and procedures can result in the loss of life, the loss of a vessel, or marine pollution; and must be dealt with and learned from.

They must prepare bridge watchstanders for difficult passages, high traffic-density areas, and the presence of fishing vessels, and must conduct regular COLREGS training and assessment to ensure full understanding and application of the Rules.

CARGO SAFETY

The seven industry bodies dedicated to container safety, collaborating as the Cargo Integrity Group, have highlighted an independent study carried out by researchers at Italian University Politecnico di Torino into shipper and forwarder application of the CTU Code, the Code of Practice for Packing of Cargo Transport Units. The 2023 survey yielded encouraging signs of adoption and highlighted several convincing arguments – including financial benefits for its use. The survey highlights multiple benefits to CTU Code users including: » Improved safety, reputation and supply chain coordination » Decreased cargo damage, environmental impact and operational inefficiencies » Those using the CTU Code incurred no extra costs in employees, contractors, or vehicles » Any increase in loading and waiting times were typically offset by CTU Code related efficiencies overall » Annual costs and penalties reduced from €670,000 pre-implementation of the Code to €13,000 postimplementation » Extra costs as a percentage of revenue reduced from 37% to 10%. “The application of the CTU Code to cargo loading and transportation processes can increase the safety level of transport activities, and also improve business processes and competitiveness. The results show that the use of the CTU Code provides an increase in safety with a drastic reduction of loading accidents and damage to goods, as well as important benefits in terms of costs, improved efficiency, corporate image and reduced environmental impact,” the authors said. Welcoming the Politecnico survey, Richard Steele CEO of ICHCA – one of

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the group’s founding associations – says: “As far as we are aware, this is the first example of publicly available empirical evidence about the use of the CTU Code made by forwarders, shippers and others responsible for safe packing. Notwithstanding the regional focus of this particular survey, we believe the results to be genuinely encouraging. They show that good operational management, efficiency and safety are partners, not opposites.” To facilitate a greater degree of understanding and wider use of what is a lengthy and complex document, the Group has published a Quick Guide to the CTU Code, together with an editable and saveable Checklist of actions and responsibilities for the guidance of those undertaking the packing of cargoes in containers.

SHAFT SYSTEM RULES

Nippon Kaiji Kyokai (ClassNK) has joined the major classification societies to amend its rules relating to the inspection of seawater-lubricated propeller shaft systems. The amendment means that ships with open seawaterlubricated propeller shafts that are built to ClassNK rules are subject to the same 15-year shaft withdrawal inspection periods as oil-lubricated shafts and sterntubes, subject to monitoring criteria. The announcement brings ClassNK’s requirements in line with those of other large class societies, including Lloyds Register, the American Bureau of Shipping, Det Norske Veritas, Bureau Veritas and the China Classification Society, which have already stipulated 15-year or longer intervals between inspections, some of them since 2016. In its amendments to the Rules and Guidance for the Survey and Construction of Steel Ships , published on 30 June 2023, ClassNK clarified its reasons for the change: “In recent years, the development of mechanical type sealing devices, and bearings with lower wear properties as well as improvements in corrosion prevention technology, have led to fewer wear and corrosion defects in both shafts and bearings. In addition, interest in seawater-lubricated bearings, which do not use lubricating oil, and their effectiveness has increased among relevant industry members due to concerns for the environment.” ClassNK also noted that the amendment follows requests received from industry stakeholders relating to the developments made in advanced seawater-lubrication system technology. Thordon Bearings is one of the companies that has supported calls for industry-wide standardisation of extended shaft withdrawals for seawater-based lubrication solutions that are now comparable to sealed oil lubricated systems. Craig Carter, vice president of business development, Thordon Bearings, says: “We are delighted that ClassNK has now joined the other major classification societies

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in dispensing with the wholly unnecessary and costly need to withdraw a seawater-lubricated propeller shaft for inspection every five years. Technology has come a long way since the first-generation seawaterlubricated lignum vitae bearings of the 1950s.” While the risk of shaft corrosion in open seawater-based systems was historically a concern with first-generation bearings, leading some classification societies to continue demanding enhanced inspection regimes, new materials and technologies mean seawaterbased systems can exceed the performance and reliability of their oil-based counterparts. Elena Corin, senior manager, special marine projects, Thordon Bearings, explains: “Aside from our pioneering polymer bearing technology, Thordon has enabled the development of ThorCoat – a toughened, modified epoxy coating, which is applied to exposed steel areas of the shaft between the liners to eliminate the need for shaft withdrawal. In the event of damage, seawater cannot wick under the coating along the shaft and the epoxy coating is spot repairable.” As a seawater-lubricated propeller shaft bearing manufacturer, Thordon Bearings has concentrated more than 40 years of research and development to produce a solution proven to be more in line with the decarbonisation movement of the 21st century than its antiquated oil-lubricated cousin. “It is undeniable that the increasing number of ocean-going tankers, bulkers, dry cargo vessels, passenger ferries, cruise ships and containers that now routinely specify a Thordon propeller shaft bearing are significantly more environmentally and operationally efficient than their oil-based equivalents,” Corin says. “Thordon’s COMPAC open seawaterlubricated propeller shaft bearing system ensures zero environmental impact, improves fuel efficiency and eliminates the costs associated with managing oil discharges.” In addition to the amendment regarding the inspection of seawaterbased propulsion systems, Class

NK has also updated several other requirements. These include new formulae for sloshing loads and new requirements for the maintenance and management of offshore wind turbine installations. Other changes include clarification of scope for protection against fire when transferring cargo to other vessels on liquefied gas carriers, clarification of the NOx emission standards for biofuel, new requirements for cast and forged steel products, and amendments to safety requirements for reciprocating internal combustion engines.

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CALCULATED APPROACH

AXS Marine has been studying the market in the light of new rules such as the EU ETS system and has found global dry bulk fleet emissions have been stabilising in 2022 and 2023. This is despite the fact that there is more traded volume, more big ships and a growing fleet. The reason for this, says VP market intelligence and data modelling Pierre Morel, is speed reduction, which has been continuing whether the ships are loaded or in ballast. “This speed reduction is due to fuel prices.” In his opinion, speed reduction is the short term solution for emissions cuts, while the longer term solution rests with eco ships, which have been the object of investment by the bigger players. When it comes to carbon intensity indicator (CII) ratings across the dry bulk fleet for all voyages performed in 2022, some 509 vessels were E rated – a matter of 63m dwt in tonnage terms. The company’s analysis also covers the impact that the introduction of EU ETS in 2024 will have and how it will affect the cost of shipping cargo either to or from the EU – both in the first year of the new regulations and in following years. The research suggests that smaller size vessels will be more impacted, when compared to VLOCS or NewcastleMax. One issue will be whether or not to reposition vessels outside the EU for some parts of a voyage in order to avoid EU ETS charges and this may well impact flows – with the ship is loaded or in ballast. When it comes to costs, operators need to be able to estimate the CO2 impact and therefore costs of the voyage to calculate their finance risk. “EU ETS is a market like FFAs. It is moving every day and is a financial exposure. It offers risks, but also opportunities and people will trade on that for sure,’ Morel says. He explains that there are ways to replicate the trading patterns of the past and analyse past performance against projected performance. Bearing in mind the new costs, hedging is one possibility.

AXS Marine’s solution involves measuring the exposure of a fleet for CO2 and also calculating what emissions will be for future voyages as well as benchmarking vessels to establish which are the best in terms of CO2 consumption. Voyage calculators can estimate what costs are involved in view of the rules and individual companies’ exposure. AXS Marine’s clients can benefit from its calculations and the company can assist in estimating future emissions as well as track all past voyages that have to be reported to the EU.

CLEAR PICTURE

Cargo owners seeking to determine their Scope 3 emission liabilities from the logistics chain must contend with multiple calculation methods from different shipping lines that will affect their costs exposure to the EU Emissions Trading System (EU ETS) for shipping. To resolve this conundrum for its clients, pure car and truck carrier (PCTC) owner and operator UECC has adopted a standardised methodology based on an existing and trusted industry framework. The EU Emissions Trading System (EU ETS), set to be phased in for shipping from 1 January 2024, will require shipping companies calling at European ports to purchase socalled EU Allowances (EUAs), or carbon credits, corresponding to each tonne of CO2 emitted to cover their annual emissions. This is effectively a tax on the use of fossil fuels in line with the price of EUAs, currently at around €80, with these costs to be distributed across the value chain based on the ‘polluter pays’ principle that underpins the regulation. This entails establishing a mechanism for allocation of these additional fuel costs to various stakeholders, including the cargo owner, that can be used to fairly and accurately calculate EUA liabilities based on their respective share of emissions. “Having to relate to shipping lines’ possible different formulas for calculation of emissions costs both increases the administrative burden and creates confusion for cargo

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owners. This can also result in higher costs for clients due to overcharging and, consequently, inequitable distribution of EUA liabilities across the value chain,” according to UECC’s energy and sustainability manager Daniel Gent. This could, for example, lead to a “ridiculous situation” where a cargo owner receives a Scope 3 footprint of 2000mts of CO2 emissions based on transport work undertaken, but is asked to pay for the equivalent of 3,000mts of CO2 as the EU ETS cost is calculated based on other external factors, such as higher T/C rates, bunker prices, etc. “A cargo owner has every right to expect to pay for the emissions generated as a result of its cargo shipment, not more and not less,” Gent says. UECC, a leading sustainable roro carrier operating in the European shortsea trade, has therefore adopted its calculation formula based on the existing methodology for greenhouse gas (GHG) emission accounting developed by the Association of European Vehicle Logistics (ECG) and Smart Freight Centre, together with UECC and other stakeholders, and incorporating ISO standards. The so-called ‘Ro-Ro GHG Emissions Accounting Guidance’ sets the standard for reporting of shipment emissions, transport activity and carbon intensities from multi-modal transport operators to cargo owners and is intended to create a harmonised and transparent methodology for calculation and reporting of logistics GHG emissions for the ro-ro industry. This is consistent with existing industry and international standards regarding carbon accounting for the logistics industry, namely the GLEC Framework and ISO 140832. The GLEC Framework is in turn aligned with the principles of the International Maritime Organization’s Energy Efficiency Operation Index. Gent says this regime is already widely used by cargo owners to determine their Scope 3 emissions from transport and logistics for the purposes of ESG reporting and it is therefore logical that this should form the basis for UECC’s EU ETS calculation method.

REGULATION

“Our EU ETS solution is intended to provide clarity, transparency and predictability for clients so they can gain a correct picture of their emission costs, based on an equitable calculation of pricing that correlates to their actual carbon footprint. We believe this is a credible method that could form the basis for a uniform EU ETS formula that would be very much welcomed by the industry,” Gent says. “At the same time, this eliminates a lot of administrative legwork for clients as it gives them a reliable, precalculated price determined according to verified emissions data recorded for the UECC fleet and already accounted under the established regime.” The UECC formula calculates EUA costs for the cargo owner using its fleet average carbon intensity, or the average amount of CO2 emitted per CEUkm, which is the relative size of the cargo in Cargo Equivalent Units (CEUs) and the distance it is being transported. Carbon intensity is multiplied by CEU volume and an adjusted figure for shortest feasible distance between port of loading and port of discharge to determine tonnes of CO2 emitted. This is then multiplied by the average

EUA auction clearing price on the European Energy Exchange in a given reference period to give the final cost for the client. UECC’s senior manager business planning and sustainability, Masanori Nagashima, says a key factor in lowering the carbon intensity of shipments – and therefore EU ETS cost liabilities for cargo owners – is high utilisation of vessels to maximise cargo volumes per shipment, as well as customer support for green technologies to power ships. “This requires all industry stakeholders to work together and pull in the same direction towards decarbonisation of shipping,” he says. Gent says cargo owners are increasingly focused on gaining the biggest carbon reduction for their money when buying shipping services to meet their environmental, social and governance targets. Having a marketbased mechanism for carbon pricing in place with the EU ETS for shipping will effectively make green carriers more attractive than those using more pollutive fuels, he explains. “Investing in green technologies and alternative fuels to lower the carbon footprint of vessels will contribute to

reduced costs exposure for clients under the EU ETS, making it cheaper for them to reach their sustainability goals,” Gent says. UECC has a roadmap in place to reduce the carbon intensity of its fleet, having already made prescient investments in green newbuilds – a pair of the world’s first dual-fuel liquefied natural gas PCTCs followed by three innovative multi-fuel LNG battery hybrid PCTCs – that are able to cut emissions by around 25% by using liquefied natural gas (LNG). These vessels are also equipped to run on drop-in fuels with lower carbon intensity such as bio-LNG and synthetic LNG as these become more widely available. In addition, UECC has piloted the use of carbonneutral biofuels on other vessels in partnership with clients such as BMW, giving a wide range of options for customers to continuously reduce their carbon footprint. “The EU ETS is a cap-and-trade system designed to incentivise the use of low-carbon technologies by making the use of conventional fossil fuels relatively more expensive. And UECC is putting this principle into action,” Gent concludes.

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

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SHIP FINANCING: VIEWPOINT

Hamburg-based ship finance platform Oceanis dives into the green financing landscape in its Q4 report, State of Ship Finance

THE COLOUR OF MONEY To state the obvious: ships, being large and slow, are extremely energy efficient at carrying cargo when compared to trucks, trains and aircrafts. Therefore, when comparing different modes of transportation, shipping is the most environmentally friendly. Still, progress made in the shipping industry, as one of the biggest emitting industries of greenhouse gases, can have a major impact on global emission level. Over the past decade, we have seen large changes to the ship financing landscape towards greener projects. The most obvious green financiers are the Poseidon Principles banks, the initiative launched in 2019 whose signatories manage 70% of the world’s shipping loans. At the same time, many other banks and funds are moving away from financing ‘brown’ assets and trades. With the strictest lenders not financing vessels carrying any fossil fuels, even coal-carrying Kamsarmaxes and larger bulk carriers. This list of banks and funds will continue to grow.

Rumours suggest that another $20bn of loans will be managed by financiers with this policy by 2024. So, what makes a ship ‘green’ or not? There are two schools of thought among lenders. Most lenders focus on the vessel’s own emissions via metrics such as AER and CII ratings. On the other hand, some see the vessel’s cargo or industry as more relevant. For example, is a Newcastlemax or VLCC really ‘green’ even if it is ammonia-powered? Are wood pellet carriers the greenest vessels afloat? Taking it to the absurd, could a wind turbine installation vessel burn coal and still be seen as environmentally friendly? This last point is a real paradox in ‘green shipping thought’. Is the vessel carrying oil or oil products responsible for those cargoes being burned? And are there other effects at play? With new reporting rules coming from the EU, the vast majority of shipping banks, not only the Poseidon Principles banks, will be forced to calculate and share their loan portfolios’ emissions. It is likely that future

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

SHIP FINANCING: VIEWPOINT

regulations will force a slow reduction in total emissions for each bank. Their calculated emissions are based on economic exposure – a loan of 50% of the vessel’s value means that the bank is responsible for 50% of the emissions. According to the existing regulatory structure, the ship is only responsible for the oil it burns and not for its cargo. For this reason, oil-carrying ships will remain well financed for the time being. Erlend Sommerfelt Hauge, managing partner at Oceanis, says: “On pricing, commercial banks are a refuge for shipowners who have less of a green agenda. Smaller commercial banks are getting very close to Poseidon Principles banks.” He adds: “For many shipowners, perhaps the restrictions on vessels and trades make Poseidon Principles margins a less attractive partner than the alternatives. Due to today’s high base rates, a 50 basis point difference in margin from 2.00% to 2.50% represents only 7% of total interest costs. Will the reduced interest costs outweigh the earnings that could have been made?” For those managers who are committed to the green transition – thank you for investing your capital into making shipping more efficient in the long term. Your additional focus on green aspects means that financing will remain available to you from a full spectrum of sources for everything from newbuilds to retrofits to second-hand purchases at marketbeating prices. Meanwhile, there is still cheap funding available for all shipowners. It’s not always with the cheapest of banks, but it still exists and at attractive terms. Keeping a fleet’s average age safely inside commercial bank limits will make sure that this remains true. The story in dry bulk is much the same as in the last quarter: margins continue to decline, but without a holding company guarantee to provide additional security, vessel earnings do not provide enough cashflow for banks to offer more than around 50% of vessel values for younger ships and 40-45% for older vessels. Funds and leasing houses can provide higher

leverage very quickly, in less than one month in many cases, but this comes with strings attached. While the interest margins charged by funds have decreased over the past three years, the more rapid increase in base rates has made interest costs take up a much larger proportion of a vessel’s daily break-even. This leaves less space for amortisation, making funds less able to provide the high financing amounts they are known for. Alternatively, some funds will offer financing terms with break-evens above the current forward freight agreement curve for a variety of dry bulk vessels with higher financing amounts. However, the risk to shipowners in this case is significant. “Chinese and Japanese leasing remains an interesting option for companies with younger tonnage, though typically only Chinese leasing is available on non-recourse basis. From experience, while the terms offered are highly attractive with margins in the 3% range this does come with several requirements. First, the shipowner must be deeply experienced with previous success in navigating downturns. Second, the

“For those managers who are committed to the green transition – thank you for investing your capital into making shipping more efficient in the long term”

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

vessels must be very young to ensure low break-evens as repayments are almost always according to a linear 18-year profile. Third, purchase options are often only available annually and from the third or fourth year of the financing. Bank and fund terms are much more flexible in these areas. Financing availability and pricing has been generally consistent quarter-on-quarter for tankers. Banks and funds remain keen to deploy capital at around the same leverage previously seen, with minimal adjustments to repayment profiles due to roughly consistent one-year TC rates across sectors. Heading into the winter season with its typically higher freight rates, this seems a conservative move. The changes in repayment structures we started to see last quarter are also continuing to make their impact felt; cash sweeps from banks are the most common change to financings of one year ago. These are generally structured on top of linear repayment profiles with a cap on the total cash which can be swept during the loan term. In many ways, this provides shipowners a more flexible set of repayment terms than a more traditional fixed front-loaded repayment schedule. In extraordinary good markets, the lenders are able to bring down their risk accelerated, while the owners will preserve some buffer towards a drop in daily earnings. Another important topic is the slow movement east of tanker shipowners, with many recent sales seeing vessels move from European owners to Middle and Far Eastern interests. Generally speaking, these newer shipowners have aimed to take advantage of the market dislocation. The sanctions caps for crude and product cargoes has proven to be a more profitable trade than avoiding such cargoes. This approach comes with its risks; it is more difficult to secure financing for these owners from Western sources, even if their trading is completely above-board and within international laws. For a full copy of the report, go to: tinyurl.com/OceanisReport

BREAKING NEWS RED SEA CRISIS

Consumers around the world will pay the price for the unfolding crisis in the Red Sea after missile attacks on merchant ships plunged supply chains into chaos. Latest data from leading industry analysts Xeneta shows spot rates in the ocean freight shipping market spiked by 20% since Friday after major shipping liner companies announced they are avoiding the Red Sea amid the attacks by Houthi militia. Peter Sand, Xeneta Chief Analyst, said: “The region is essentially in a war situation because it is too dangerous for many vessels to sail through the Red Sea and therefore also the Suez Canal, which is the major artery for world trade. “Ships are now being re-routed via the Cape of Good Hope, but not only will this add up to 10 days sailing time, it will cost up to USD 1 million extra in fuel for every round trip between the Far East and North Europe. “If we look at container shipping alone, Xeneta estimate the diversion via Africa will also require additional shipping capacity in the region of

one million TEU (20ft equivalent shipping containers). “There is capacity in the market, but it will come at a cost, and we could see ocean freight shipping rates increase by 100%. This is a cost that will ultimately be passed on to consumers who are buying the goods.” Recently, the US Secretary of Defense Lloyd Austin announced ‘Operation Prosperity Guardian’, a coalition task force to combat the Houthi attacks and protect merchant ships sailing through the Red Sea and Gulf of Aden. This builds upon the existing Task Force 153 in the region to tackle piracy. Sand added: “We are now seeing action from politicians, but we do not know how or when this coalition will be successful in opening safe passage for vessels through the Red Sea and Gulf of Aden. “Everything is at stake here because free-flowing global trade effects almost every single human being on earth. The Suez Canal is absolutely critical with many billions of dollars in goods passing through every day from the Far East towards North Europe, Mediterranean and US East Coast.

“Ocean liner companies are taking decisive action in re-routing via the Cape of Good Hope but there are still many unknowns and the longer this disruption lasts the more expensive and painful it will be. “Supply chains have still not fully recovered from the pandemic, with schedule reliability between Far East and North Europe standing at just 64%. This latest crisis could set that recovery back even further. “For example, Maersk has stated it does not know when it will be safe to sail through the Bab-el-Mandeb Strait and CMA CGM Group has issued a notice of Force Majeure, which perhaps suggests they do not believe this situation will be resolved in the immediate future. “We may also see this impact current negotiations between shippers and ocean freight carriers for long term contracts lasting the duration of 2024. Shippers may feel a level of concern that long term rates could follow the spot market and increase dramatically as a result of this crisis. “The industry will be looking at the Xeneta XSI® closely during 2024.”

C L E A N S H I P P I N G INTERNATIONAL – Winter 2023

PORT AND TERMINAL OPERATIONS FOR BULK CARGOES – Short Course

19-22 March 2024

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Subjects covered include:

» Ship unloading technologies » Conveying technologies » Storage and discharge technologies » Loading and unloading control » Rail and road out loading equipment and control » Explosion and fire risks and management » Mobile plant and safety » Developments in automation and autonomous vehicles » Dust control and environmental protection » Controlling cargo damage » Wear protection and maintenance » Cargo characterisation for handleability and other issues

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For anyone concerned about or responsible for the safe handling For anyone concerned about or and storage of bulk materials responsible for the safe handling in and on the sea and storage ports of bulk materials in ports and on the sea Course Leader: Mike Bradley, Professor of Bulk and Course Leader: MikeParticulate Bradley, Technologies and Director Professor of Bulk and Particulateof The Wolfson Centre, University Technologies andof Greenwich Director of The Wolfson Centre, University of Greenwich

For further course details and how to register please see bulkterminals.org/events/courses-and-training or contact Simon Gutteridge events@bulkterminals.org +33 (0)321 47 72 19

THE SIMPLE SOLUTION TO A GLOBAL CHALLENGE PureteQ A/S and China Shipbuilding Power Engineering Institute Co., Ltd. (CSPI) have entered a partnership within production of maritime scrubber systems.