• Home
  • News
  • LR launches ‘First movers in Shipping’s Decarbonisation – a framework for getting started’
  • 2021 December 9 15:21

    LR launches ‘First movers in Shipping’s Decarbonisation – a framework for getting started’

    The Lloyd’s Register (LR) Maritime Decarbonisation Hub has launched ‘First movers in Shipping’s Decarbonisation – a framework for getting started’, a methodology that enables a detailed comparison of different fuel transition pathways regardless of vessel type or trade route.

    The framework evaluates the entire supply chain, from fuel production to usage onboard vessels, and can be applied to any fleet, revealing the implications of each transition strategy and offering insights, in support of future fleet investment decisions.

    In this first study using the framework, LR experts focused on three transition pathways - methanol, ammonia, and hydrogen - and applied these to the containership feeder fleet operating regionally between Singapore, Hong Kong, and other Asian countries nearby.

    Key findings from the first analysis have revealed:

    Different transitions might be suitable for this specific fleet. Based on either methanol, ammonia or hydrogen as fuels, which in turn can be produced from natural gas, renewable electricity, or in some instances, sustainable biomass.

    Similar emissions reduction trajectories have different implications for the fuel supply infrastructure. The fleet transitions based on methanol, ammonia or hydrogen can all meet similar emissions reductions; however, this result is achieved using different infrastructure and at different implications.

     The sector must balance early results with long-term planning. This analysis shows a trade-off between early efforts to decarbonise the fleet, which allows for a smoother transition, versus the long-term planning approach, which attempts to find the solution with the lowest overall cost. This balance must be found while providing a growing supply of fuel through different feedstock routes without major price fluctuations.

     Both retrofitting and newbuild will be required to meet net zero by 2050. In all transition pathways, approximately 26% (by number of ships up to 2050) of the transition is achieved through retrofitting. This means that replacing vessels near the end of their lives with newbuilds fuelled by zero-carbon fuels is no longer sufficient to meet a net zero 2050 target. Instead, younger vessels in operation today need to be retrofitted to accelerate the uptake of zero-carbon fuels.

     Fleet costs vary per transition pathway. Fleet total costs up to 2050 are lowest for the ammonia transition ($44.5 bn), followed by methanol ($51.5 bn) and then hydrogen ($69.4 bn). This compares to the fossil fuel baseline of $42.3 bn including carbon cost.

     Voyage costs dominate the fleet’s total costs. Voyage costs represent between 71%-82% of the cumulative fleet total costs depending on the transition. This means improving vessel efficiency and voyage optimisation becomes more and more important to reduce the cost of decarbonisation.

     The fleet fuel transition leads to a specific fuel supply. The production location delivering the cheapest fuel production option typically also benefits from being the location with the lowest feedstock prices, except in instances when the cost of transporting that fuel to the fleet becomes too large (e.g. for the hydrogen transition).

     Co-location of fuels produced with natural gas and fuels produced with renewable electricity could deliver further cost reductions. Saudi Arabia and Australia are likely production locations because the relative lower feedstock prices. There can be key economic advantages in colocation of plants. This would de-risk investments and build long-term security over supply capability and associated costs.

    The framework, in addition to the case study and its findings, were reviewed by a range of industry stakeholders.

    Building on this fuel agnostic framework, the LR Maritime Decarbonisation Hub aims to steer cross-industry alliances that can unearth and accelerate resilient energy transitions and enable pilot projects this decade.

    The new report analysed three transition pathways methanol, ammonia, and hydrogen, and applied each potential fuel to the containership feeder fleet operating regionally between Singapore, Hong Kong, and other Asian countries nearby. This consisted of 222 ships, totalling ~360k TEU capacity, with fuel consumption estimated at 1.4 million tons of fuel oil equivalent and 4.7 million tons of CO2 emitted per year, according to AIS data.

    About the Lloyd’s Register Decarbonisation Hub

    Launched in 2020, the Lloyd’s Register Maritime Decarbonisation Hub is a joint initiative between Lloyd’s Register Group and Foundation, and brings together thought leaders and subject matter experts with the skills, knowledge and capability to help the maritime industry design, develop and commercialise the pathways to future fuels required for decarbonisation.

2022 January 22

14:06 Crowley names Marcus Jadotte as Senior VP, Government Relations
13:29 Kongsberg Digital joins the NorthWind project to develop digital twin technology for offshore wind
12:41 New year boost for MYCRANE as four lifting experts join the team
12:07 Mitsui O.S.K. Lines, Ltd. and Bombora Wave Power strengthen their collaboration through an investment
11:34 Carnival Cruise Line adding more embarkation enhancements as it commits to current protocols for the foreseeable future
10:54 Indian Register of Shipping strengthens focus on safety of Inland Waterways

2022 January 21

19:15 PortNews’ week updates and insights summary
18:20 More than 600 boxships stay off ports waiting for berth space, Seaexplorer disruption indicator shows
18:07 Green Innovation Fund adopts joint project on “Mass-production and Cost Reduction of Floating Offshore Wind Installation”
17:44 The new Stena Baltica has debuted on Stena Line’s Baltic Sea route from Ventspils to Nynäshamn
17:16 Port of Los Angeles breaks cargo record in 2021
17:06 Finnlines strengthens Germany-Sweden route with a fourth ship
16:36 Maersk opens its logistics center for South Western Europe at port of Barcelona
16:03 Dublin Port sees a small reduction in volumes in 2021
15:24 Kongsberg Digital joins the NorthWind project to develop digital twin technology for offshore wind
14:03 ClassNK issues Approval in Principle for ammonia-fueled Panamax bulk carrier developed by Planning and Design Center for Greener Ships (GSC)
14:02 TGE Marine announces completion of largest LNG Bi-Lobe Type C Tanks
13:23 Samskip adds 150 new sustainable reefer containers to its fleet
13:01 Icebreakers remain busy assisting shipping of the Gulf of Finland eastern part
12:13 Freight volumes increase at the Port of Gothenburg in 2021
12:12 Nippon Paint Marine’s new fastar antifouling earmarked for Cosco Shipping VLCC fleet
11:42 RZD invested heavily in its rolling stock upgrade in 2021
11:31 DP World launches a premium barge service between the Upper Rhine region and Rotterdam World Gateway
11:03 Israel orders three new submarines from thyssenkrupp Marine Systems
10:31 Port of Oakland import volume hit new record in 2021
10:11 Crude oil prices drop on US oil reserves growth
09:32 MABUX: Global bunker prices may slide down on Jan. 21
09:21 Baltic Dry Index as of Jan 20

2022 January 20

18:35 EuroDry announces agreement to acquire a 2014-built Supramax bulker
18:05 Valaris announces floater contract awards
17:43 Alfa Laval experiences increased demand for solutions related to LPG as fuel
17:26 Throughput of Chinese sea and river ports in 2021 climbed by 6.8% YoY
17:15 The U.S. Army gets $22.81 billion in supplemental funding of studies, projects and programs
17:05 Sanmar Shipyards delivers fourth powerful compact tug to SAAM Towage
16:50 Cargo traffic on IWW of Russia in 2021 rose by 1.2% to 110.3 million tonnes
16:35 Uber Boat by Thames Clippers builds the UK’s first hybrid high speed passenger ferries
16:15 American Cruise Lines unveils Project Blue
16:05 TGE Marine announces the completion of the tank building phase for two large LNG cargo tanks
15:31 Hafnia plans to acquire 12 modern LR1 tankers
15:25 Holland Shipyards Group develops new tug EDDY 24-50 E
15:05 ZIM announces new chartering agreement for three 7,000 TEU LNG dual-fuel container vessels
14:40 Exports of LNG and gas condensate from port Sabetta exceeded 19 million tonnes in 2021
14:11 Stena Line and Associated British Ports sign £100M deal for new ferry terminal at the Port of Immingham
13:45 Federal authorities asked to step into situation with coal transportation by Russian Railways
13:19 MABUX: Bunker Weekly Outlook, Week 03, 2022
13:12 Norside buys the platform supply vessel 'Farland' for offshore wind
12:46 New ICS guide helps seafarers navigate the digital bridge
12:08 The Harbour Master’s Division of the Port of Rotterdam Authority makes it through the second corona year unscathed
11:51 Port of Long Beach sets annual record with 9.38 million TEUs
10:46 Global Ports' consolidated marine container throughput increased by 2.8% y-o-y in 2021
10:10 Increase of cargo predicted for the Port of Riga this year
09:33 MABUX: Global bunker prices may turn over downward correction in the end of the day
09:25 Crude oil market sees downward price correction
09:08 Baltic Dry Index as of January 19

2022 January 19

18:20 New SGMF publication provides expansive and highly relevant guidelines on safe bunkering of LNG
18:03 ESL Shipping sells the barge Espa
17:52 High efficiency Wärtsilä power solutions to drive seven new Arctic Shuttle Tankers
17:50 Euroseas announces new charter for its 2,788 TEU, 2004-built vessel
17:33 Freeport of Riga Authority to invest almost EUR 1 million in implementation of port digital technology and IT solution projects this year
17:15 ABS, SDTR and SDARI develop methanol-fueled bulker