We’re back with another week of maritime tech updates, straight to your inbox. This week, it’s all about decarbonisation and navigating the delicate web of funding opportunities available to support green shipping.
This week, I spoke with Johan Svendsen, Head of Programme at Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. In our conversation, he shared his expertise and insights into which innovations could be a game-changer in our industry, along with the challenges in implementing decarbonisation technology.
Johan Svendsen, Head of Programme at Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping
The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping provides independent research and development expertise to accelerate maritime decarbonisation through industry collaboration. It serves as a knowledge hub that drives sustainable innovation whilst advocating for regulatory reforms needed for the shipping industry's transition to net-zero emissions.
With the IMO charging towards their net-zero target, there’s no denying that the maritime industry is heading towards green shipping. From alternative fuels to wind-assisted propulsion, decarbonisation technology is advancing fast. The only challenge - it’s more expensive than the CO2-emitting business-as-usual world.
“With recent developments, we could significantly reduce emissions in maritime”
Johan spoke about some of the decarbonisation funding initiatives around Europe available at a national and EU level. While these grants do exist, they are not without their challenges “The EU Innovation Fund is a good place to start, but with the complexity of the application process, it can be difficult to secure funding.”
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“This has now created a middle band of countries that are too rich for the World Bank and too poor to fund large national projects”
Johan also discussed the potential for lower-income nations to tap funds from various investment banks, such as the World Bank, which is actively involved in funding and supporting the decarbonisation of the maritime industry through various initiatives.
However, “This has now created a middle band of countries who are too rich for the World Bank and too poor to fund large national projects”, creating a band of countries with limited access to funds.
“Alternative fuels are great, but they cost a lot of energy to produce and a lot of that energy is wasted through heat generation”
If you are one of those lucky companies who are able to secure funding, or better yet, your own organisation foots the bill, the next big question is… Which technology do you choose?
Choosing the right decarbonisation strategy isn’t just about finding the biggest financial ROI; to become truly sustainable, shipping companies need to think about energy as a lifecycle. Johan expands, “Alternative fuels are great, but they cost a lot of energy to produce and a lot of that energy is wasted through heat generation.”
In Johan’s opinion, electrification is a promising technology on the market to date. “There has been huge evolution in the electric batteries, with recent developments, we could significantly reduce emissions in maritime, in a more energy-efficient way.”
“All stakeholders should work together to produce a united case on how funding can benefit those beyond just ship owners”
For shipping companies looking to decarbonise without access to funding, Johan had a lot of advice. In his opinion, “The best thing you can do is to explore Green Shipping Corridors underway in your area of operations.” By providing a structured environment for testing, deployment, and scaling up of green shipping practices, they offer a great insight into the effective decarbonisation on the market to date, along with real-world examples on the potential gains from going green.
For ship owners who are thinking of applying for investments or grants, Johan offered the following advice: “All stakeholders should work together to produce a united case on how funding can benefit those beyond just ship owners.”
Johan’s opinion is that providing a comprehensive case as to how decarbonisation technology can benefit the entire supply chain can increase your chances of successfully securing funding.
Quick-Fire Tech News Round-Up
That’s another week of maritime tech signed, sealed and delivered. Until next week, keep driving innovation, Ailsa