Daily News Briefing
News in and around LISW19
In the 09/11/2019 edition:
- Port of Southampton and Government launch UK first Port Economic Partnership
- ABS Brings Together Industry Leaders to Discuss the Journey to 2050
- Government backs cutting-edge tech to drive down shipping emissions
By Debra Massey on Sep 10, 2019 09:53 am
London International Shipping Week Event Looks Beyond Today’s State-of-the-Art to Meet Decarbonization Challenges
(LONDON) Shipping industry leaders debated the industry’s decarbonization challenge at a high-profile ABS panel at London International Shipping Week today.
CEO of JP Morgan Global Transport Andrian Dacy; Global Head of Wet Freight at Trafigura Rasmus Bach Nielsen and CTM CEO John Radziwill joined ABS Chairman, President and CEOChristopher J. Wiernicki for a discussion on the Journey to 2050: Beyond State-of-the-Art, moderated by TradeWinds Editor-in-Chief Julian Bray.
Welcoming guests to the exclusive event, UK Maritime Minister Nusrat Ghani said: “The UK maritime sector has a lot to be proud of in developing cleaner, smarter ways of working and investing in technology that will lead to greater efficiencies tomorrow. This includes the development of new maritime technologies that will help us meet our targets to drive emissions to zero. We need tangible action on clean technologies and fuels so we can thrive in a changing world, focusing on innovation, something which ABS has been at the forefront of.” said the Minister.
The panel offered on insights on how new technology can make shipping more efficient, new and existing alternative fuels, carbon emission reduction strategies, sources of finance in a decarbonizing economy and the impact of shipyard consolidation on new vessel designs.
“Today, the maritime industry is at the start of a daring voyage of disruptive change. Daring because its ultimate goals are both clearly stated and clearly unattainable, for now. We know where we want to go and have only the tools to begin the journey, but our own history tells us that, if we remain committed, we will eventually break the barriers that separate our vision from reality,” said Wiernicki.
Julian Bray opened the discussion saying, “How do you decarbonize an industry built on carbon and which carries so much carbon? That illustrates the scale of the challenge. We have to remember that the leading edge of efficient ships are a fraction of the fleet. There is a great deal of interest but so far action and investment have been limited to a few industry leaders. What needs to become clearer is where the opportunities for change will emerge and how the market will support them.”
Rasmus Bach Nielsen said: “The last 10 years have shown that shipping is a hard market in which to push the adoption of technology and take on the associated costs, because there has been so little money available. Shipyard consolidation could not have come at a better time; it will help to force through technology challenges; we need yards to be as strong as possible. Consolidation in shipbuilding is positive and needed for industry to be successful on the journey of the next 10 years.”
Andrian Dacy said: “There is not one institutional investor in the west that is not thinking about the ESG (Environmental Social Governance) Agenda and the ESG status of their investments. The reality is that the largest pools of capital have made sustainability a priority. These issues may not trickle into your business straight away but capital moves the market and CIOs or finance executives are all thinking that way. It’s part of the broader conversation in the industry.”
John Radziwill said: “Would I be willing to give away inefficiency in the market in the cause of decarbonisation? 100% yes. If port congestion is less going forward then so be it. Efficiency and profitability go together and digital technology can help in a major way, but ordering new ships that are a little more efficient is not the solution. We need to use the existing fleet better, to play the hand we are dealt. I think we can lower costs increase safety and make money.”
Wiernicki added: “2050 is obviously a long way off and it will be another generation of leaders making the practical decisions in that respect. But it would be a mistake to put the question in a box to be opened by the next generation. It must be on the radar today because, although current technologies cannot get us there, it falls to the present generation to make a commitment to develop and mature these solutions so that the next generation can implement them.”
By Debra Massey on Sep 10, 2019 09:34 am
£2.3m grant to support the development of trailblazing maritime technology.
Government to work with the investment community to help finance zero-emission shipping projects.
Latest step in Department for Transport’s Clean Maritime Plan.
Britain is set to become a global hub for low-carbon maritime technology, thanks to new government funding.
Maritime Minister Nusrat Ghani has today (Tuesday 10 September) committed a further £1m to fund new shipping technology projects through MarRI-UK, a consortium of leading maritime organisations.
MarRI-UK has already allocated £1m to support early stage clean maritime projects. Today Government is announcing a further £1m for technology and innovation projects, boosting the wealth of maritime knowledge that exists in the UK to build an industry fit for the future.
Maritime Minister Nusrat Ghani said:
“I am delighted to announce this fantastic funding for pioneering research, bringing the UK ever closer to zero emission shipping.
“The UK continues to lead the way on the global stage, playing a key role in reaching an international agreement to reduce greenhouse gas emissions from shipping by at least 50% in 2050.
“This latest investment will help ensure our great maritime nation remains sustainable years into the future.”
The Government is also announcing a push to bring financiers and budding entrepreneurs together to help innovation flourish in the sector.
The new Green Finance for Maritime conference in Summer 2020 will bring together representatives from the government, financial services and technology sector to build relationships and broker new deals.
This will help cement the UK’s position as a global hub for the provision of green finance and move the UK even further towards zero-emission shipping.
Sarah Kenny, Vice Chair of Maritime UK said:
“The UK is home to world leading maritime technology, particularly in automation. We want to be leaders in the key areas of decarbonisation and digitisation too.
“MarRI-UK is the first collaborative body in the sector that brings together expertise from all parts of the sector. We back decarbonisation by 2050 and by working collaboratively with government, we will achieve this.
“Already across Britain we’re seeing promising progress: from hybrid ferries to hydrogen fuel, the sector is tackling the challenge head on.”
The UK has already taken a proactive role in driving this move in UK waters and is seen globally as a role model in zero-emission shipping.
Existing projects in this area include:
- Hybrid ferries being used between Portsmouth and the Isle of Wight and in Scotland;
- Shore-side electricity at Portsmouth, Fraserburgh and Brodick ports driving down emissions from running engines; and
- A project in Orkney exploring how to directly inject hydrogen into the fuel supply of ferries, reducing Co2 emissions.
Smart shipping and clean maritime, are key strands of the government’s Maritime 2050 strategy, a long term look at the opportunities for the sector for the next 30 years.
These new initiatives are helping the Government deliver on its bold Clean Maritime Plan, published earlier this year to set out how it intends to clean up the sector and move to zero -emission shipping.
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