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Fathom Shipping - Growing Technology Sectors in Maritime
The maritime industry is responsible for transporting 90% of global goods, but it also emits over 1 billion tonnes of carbon annually and faces increasing regulatory pressures to reduce emissions. Technology opportunities, such as exhaust gas cleaning systems and ballast water treatment systems, are emerging to help meet these regulations, but uptake is hindered by costs, the need for compliance, and financial access. Overall, innovation and investment in new technologies are crucial for the industry's transition to a more sustainable future.
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Fathom Shipping - Growing Technology Sectors in Maritime
- 1. Growing Technology Sectors inMaritime January 14th , 2015 Alison Jarabo, Director – Fathom
- 2. • 90% ofworld goods carried by maritime industry. • Over 60,000 merchant ships. • Industry emits over 1billion tonnes of carbon a year- more CO2 than Germany. • Burns the ‘dirtiest’ fuel of all (high sulphur oxides, nitrous oxide and particulate matter content upon combustion). • Fuel is highest operating cost. www.fathomshipping.com Headline Facts and Figures
- 3. Regulation •Governed by International Maritime Organisation(IMO) •170 member states www.fathomshipping.com What Drives Technology Growth Areas? Cost Saving
- 4. What? •Remove pollutants directly fromthe exhaust gas stream. •Enables burning of less refined fuels. •Established in land- based industries but relatively new for maritime. www.fathomshipping.com Why? •Emission Control Areas (ECAs): provision for control for SOx and PM, or NOx emissions limits •ECAs include Baltic Sea, North Seas, North America ECA and US Caribbean ECA. •January 2015 sulphur limits 0.01%. •Global sulphur cap 2020 0.5% *? Exhaust Gas Cleaning ‘Scrubbers’
- 5. • Compliance eitherby fuel of 0.1% sulphur content or an ‘equivalents’. • Price differential currently sitting $220-250 per tonne between HFO (<3.5%) and MGO (<0.01%). • Savings can be up to $20,000 per day for large vessel. • Systems costing in the range of $2-4 million. www.fathomshipping.com Technology Opportunity
- 6. • 92 vesselsin the world fleet fitted with ‘scrubber’ technology. • 37 ships on order are due to have scrubbers installed. • Majority are ro-ro and cruise/passenger vessels (50%) and offshore units (18%) • 75% of these vessels are younger than ten years old • Scandinavian owners, mainly Norwegians, account for 50% of the scrubber equipped fleet whilst ‘Other’ European owners account for 41% of the orderbook in numerical terms. www.fathomshipping.com Current Statistics
- 7. • Reliability oftechnology. • Time spent in emission control areas. • Uncertainty over 2020 sulphur cap. • Many systems available to market and some very mature large players. • Installation time and unit size. www.fathomshipping.com Barriers to Uptake
- 8. What? •Ballast water providesstability and manoeuvrability to a ship (can be millions of gallons). •Usually discharged at different port of call to where taken on. •Can introduce invasive species into areas. •BWTS treat the water so that the organisms are ‘dead’ or ‘inactive’. www.fathomshipping.com Why? •IMO adopted the International Convention for the Control and Management of Ship’s Ballast Water and Sediments in 2004. •Convention will enter into force 12 months after ratification by 30 States representing 35% of world merchant shipping tonnage. •Current status: is that it has been ratified by 43 Member States but these only representing 32.54% share of world merchant shipping tonnage Ballast Water Treatment Systems
- 9. •Ratification expected imminently (nextyear?). •Every vessel to be fitted with BWTS within maximum of 5 years of the ratification. •System cost dependent on size but up to several million. www.fathomshipping.com Technology Opportunity
- 10.
- 11. • Lack ofin-service history. • Lack of clarity of parameters that will be acceptable. • No financial incentive. • Time period to implement. • Shipyard capacity. • Choosing a provider who will be in market for long term (deep pockets required). www.fathomshipping.com Barriers to Uptake
- 12. What? •Software & measuring instruments •Varietyof performance measurement, monitoring and management www.fathomshipping.com Why? •Improving ship fuel consumption. •Reduced ship fuel costs. •Transparency to shore based operation Ship Performance Management Systems
- 13. Ship performance dependson numerous factors including: •Weather & sea conditions. •Technical efficiency of ship. •Maintenance of a ship e.g. hull resistance from fouling. •Speed. •Operational factors e.g. trim and ballast conditions. Range of sensors, power measurement, data collection and analysis software and user system opportunities. www.fathomshipping.com Technology Opportunity
- 14. • Cost Saving! •Even 1%-2% fuel consumption reduction can represent substantial savings. • Charter advantage. www.fathomshipping.com Technology Benefits
- 15. Barriers to Uptake www.fathomshipping.com •Very wide variety of systems and options • Distrust in automated data collection and analysis • Lack of installed infrastructure on ship • Costs for installing required sensors and for purchasing software • Possibly fear of confidential (competitive) data leak • ROI
- 16. What? •Reduce build-up oforganic growth on a ship hull. •Most prevalent technology type are biocidal paints. •Types hull coatings include: • Foul release • Self-polishing surface • Hard coatings • Alternative (new) coatings www.fathomshipping.com Why? •10% speed reduction from fouling : 40% increase in fuel consumption to compensate. • 5000 TEU containership- 150 tonnes p/day at US$300 p/t. 250 sailing days, annual fuel bill US$11,250,000. Saving of 7% (on fuel consumption increase) = ‘saving’ of US$787,500. Hull Coatings
- 17. •‘Toxic’ hull coatingshave risk of further legislation. •Non-toxic good for company environmental profile. •None are completely effective at foul prevention. Active R&D Sector •Microfibre foils: film of tiny fibres. Prevent microorganisms from settling on hull via the density of the foil and the swaying motion of individual fibres. •Stimulated release coatings: use periodic stimulus e.g electric current to change the shape of the hull surface and knock any attached organisms off. www.fathomshipping.com Technology Opportunity
- 18. • Lack ofa market-wide performance measuring standard measure to allow for easy comparison between products. • Increased price of non biocide based paints and possible need to re-coat more often. • Split incentives under term charters. • Patents that limit the flow of information between manufacturers and also of performance information. • Market dominated by few huge players with long histories. www.fathomshipping.com Barriers to Uptake
- 19. Market barriers anddrivers are sometimes two sides of the same coin. • Sector excels in anticipating changes in regulation. • Early R&D efforts as long process to develop and test coatings. • Good at adopting consistent and coherent regulation globally. • Performance guarantees. It is a multi-billion dollar market and therefore tends to swiftly barriers www.fathomshipping.com The Good News
- 20. Back to theFuture www.fathomshipping.com
- 21. Back to theFuture www.fathomshipping.com
- 22. Technology and innovationscan abound but without end-users able to access the finance to deploy then the market will fail. Finance- The Final Frontier? www.fathomshipping.com
- 23. The Efficiency Trap: •Tobecome more efficient, ship owners & operators need to invest in the new technology/vessels. •In order to invest need access to finance. Without access to finance both new technologies AND shipping operations sink! Finance- The Final Frontier? www.fathomshipping.com
- 24. www.fathomshipping.com 27 Sheet Street Windsor UnitedKingdom SL4 1BN +44 (0) 1753 853791 [email protected] Thank you for your attention.