Regulations will drive decarbonisation; LNG is short-term transition fuel; and while the intention of the ETS is good it is “complicated and bureaucratic” – these are some of the key takeaways from a panel discussion during London International Shipping Week (LISW)
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Charting the future of maritime: A century ahead panel discussion took place to find out what maritime leaders anticipate in the coming years. Co-hosted by Wikborg Rein and Yara Marine Technologies, the discussion delved into the challenges and opportunities that will define the maritime sector’s coming evolution.
The panel of experts included: Wikborg Rein partner Eleanor Midwinter (moderator), Yara Marine Technologies chief sales officer Aleksander Askeland, Union Maritime Ltd head of technical Bhuvnesh Dogra, Lloyd’s Register shipping decarbonisation specialist Charlie McKinlay, Wallem Group chief executive John-Kaare Aune, Wikborg Rein associate and special adviser Tonje Hagen Geiran ad non-profit Opportunity Green founder Aoife O’Leary.
Discussions kicked off with the importance of regulation to drive decarbonisation forwards. Ms O’Leary said, “The only answer is regulation. It’s clear the shipping industry is not going to do it itself… there are nice declarations but these don’t necessarily seem to come through with anything. On alternative fuels, there are a number of them but if talking about anything that is truly sustainable in the long term and is actually green, then it is going to be produced from green hydrogen. Whether that is hydrogen itself or green methanol or green ammonia, you need green hydrogen to start. And yet the industry gets caught up with ‘what is the fuel’?
Well, we know what the base of the fuel is and what we have to do to get that built, but we are not focusing on that. I am a bit sceptical as we have all these tools but until we get regulation that will force shipping industry to do something, it’s not [going to].”
Mr McKinlay agreedthat regulation was important – but they need to be the right regulations, and regulations for alternative fuels must be implemented correctly.
Ms Hagen Geiran highlighted how recent regulation was driving change, from ESG requirements to the expansion of ETS to cover shipping.
But Mr Aune said, “The intention is good for ETS but it’s just made it into a horrible bureaucratic complicated regulatory system instead of, for example, putting a carbon levy on the fuel you purchase. That is much easier and some of the carbon levy can be used to support the first movers when it comes to green technology.”
Creating as much efficiency as possible, both in the future and current fleets, was also a main topic for the panel, and they emphasised the importance of this.
Both Mr Askeland and Mr Dogma highlighted the benefits of using wind as a means of energy, with Mr Askeland also pointing out the importance of energy on existing fleets, saying, “Electrification and energy management are quite iportant – always use as little energy as possible and always shift to the most efficient energy source that we have… [you can] squeeze out quite a lot of efficiency from existing fleets.”
Mr Dogra agreed that operational efficiency for the existing fleet needs to be looked at.
The attention then turned to mid-term fuels. Mr McKinley said, “We need to think of the whole system in terms of renewable energy. Unfortunately, there is not an abundant source… fuels cells and ammonia are key developments and areas to look at.”
Singling out LNG, he said it was “giving with one hand and taking with another”.
“CO2 emissions are much lower, but the methane slip is a concern; one gram of methane is about 28-30 tonnes worse in Global Warming Potential than one gramme of CO2. The advantage is that the technology and supply chain are quite mature so we may continue to see it grow in the short term but it is very much a short-term transition fuel.”
Ms O’Leary argued the new 2030 targets exclud LNG because the CO2 emissions target is 30% and LNG is 25%. She commented that methane, being so much greater than CO2, meant “it is not morally acceptable to talk about LNG as anything other than a transition to stop using it.”
But Mr Aune pointed out it is “what we have available now”. He added, “It is not the best option but it is the most realistic option at the moment. Many vessels are ‘ready’ ie, ammonia ready, but will be burning conventional fuels for many years.”
Ms Hagen Geiran circled back to the importance of regulation. “When we are talking about reducing emissions from LNG, the new ETS will drive the tradition in a very thorough way.”
Riviera’s two-day Maritime Decarbonisation, Europe: Conference, Awards & Exhibition 2023 returns to Amsterdam on 26-27 September 2023, seeking to bring clarity to regulatory directions and decarbonisation pathways for both newbuilds and existing vessels
