• 2019 October 24 16:30

    New study of LR and Maersk indicates that achieving net zero is an ‘OPEX not a CAPEX challenge‘

    LR and Maersk joint study finds that to develop zero carbon ready ships, shipowners must invest for fuel flexibility and points to the need for policy interventions and fundamental changes to incentives scheme for shipping, Maersk said in its release.

    A joint LR and A.P. Moller – Maersk study assessing the transition to zero carbon fuels has found that the cost of transport will rise – not because ships themselves will require greater levels of investment but because new fuels are projected to be significantly more expensive than existing fossil solutions which will lead to increased operating costs.

    According to the study partners, achieving net zero is therefore an operating expense (OPEX) not a capital expenditure (CAPEX) challenge. A further key conclusion of the joint exercise was the recognition that the market will not drive the transition to zero and policy interventions as well as a fundamental change to the incentives scheme for shipping are required.

    The joint study evaluates the interplay between economic performance of zero-emission vessels (ZEVs), technology readiness of fuels, associated machinery configurations, as well as safety and environmental considerations, all in the context of the wider energy system and the dependable production of future fuels. The study also found that the most relevant carbon neutral fuel configurations have relatively similar cost projections so initial modelling cannot yet determine clear winners purely from a cost point of view.

    “The next decade will require industry collaboration as shipping considers its decarbonisation options and looks closely at the potential of fuels like alcohol, biomethane and ammonia,” says LR CEO Alastair Marsh. “This joint modelling exercise between Lloyd’s Register and Maersk indicates that shipowners must invest for fuel flexibility and it is also clear that this transition presents more of an operating expenditure challenge than a capital expenditure one.”

    According to Katharine Palmer, LR global head of sustainability, who led the study on behalf of the classification society, “the additional price to build a ship with new fuel tanks, modified engines and fuel supply systems is a very small element of the total cost of operation, as the additional CAPEX cost is divided over the lifetime of the ship but given the potential impact of future fuel prices on operating costs, shipowners must invest in flexibility – for example, designing a ship which can run on one fuel today and later be retrofitted to run on an alternate fuel.”

    According to the project partners, the greater challenge is on land and within the energy sector. ZEVs are technologically possible in the next two years and while they may require ships and engines to be amended, this is dwarfed by the challenges of getting the right fuel ready and the necessary supporting infrastructure on land.

    “Shipowners must be confident around their future investments and they require confidence around their fuel supply chain, both availability in the quantities required and the land-based infrastructure in place,” says LR’s Palmer.

    “Decarbonising shipping requires a total shift in propulsion technologies and by 2030 we need to see the first commercially viable carbon neutral vessels in service – that’s only 11 years from now. This is a game changer that requires close collaboration and joint action from researchers, regulators, technology developers, investors, customers and energy providers,” says Søren Toft, Maersk Chief Operating Officer.

    “Getting such a wide range of actors to work in the same direction is a necessary task, fundamental for the world, the next generations and also for the shipping sector if it is to stay relevant as the servant of global trade in a decarbonised economy. The more industry consensus we can get towards the pathway to follow the better to accelerate the efforts to innovate, scale and initiated the transition to a sustainable shipping by 2030,” Toft added.




2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas
12:59 Hanwha Ocean wins 2.4 tln-won order for 8 LNG ships
11:16 Inland Ports meet in Paris to talk about the innovation potential of inland ports
10:50 IMO agrees possible outline for maritime “net-zero framework”
10:24 Hapag-Lloyd to continue to avoid the Red Sea route
09:58 QatarEnergy enters time charter agreements with Nakilat for the operation of 25 LNG vessels

2024 March 24

16:18 Inchgreen Marine Park upgraded as part of £11m investment
15:14 A ribbon-cutting ceremony for Solent Rail Terminal Rail was held at the Port of Southampton
14:08 ESNA and Strategic Marine join forces to offer Surface Effect Ship (“SES”) Crew Transfer Vessels (“CTV”) to the market
13:07 First LNG powered vessel calls at HIP
12:49 Inter-array cable installation completed at Neart na Gaoithe offshore wind farm
11:32 Equinor ASA posts net income at USD 11.9 billion in 2023
09:25 Edda Wind announces the sale of Edda Passat