International Maritime Organization (IMO) - Experts & Thought Leaders

Syroco has developed and sells a software platform based on artificial intelligence, dedicated to weather routing (optimisation of routes by taking into account weather and sea conditions) and optimisation of vessel settings. It reduces the fuel consumption of merchant ships by more than 10% on average and up to 25% in certain situatiC’est ons.  Series A round The ROI for customers is attained in a few months. The impact of the solution is very high in terms of CO2 emissions avoided. Current users already include Socatra, Knutsen OAS Shipping, Geogas, Marfret, and Odfjell. This €7.5m Series A round of equity will allow Syroco to intensify efforts in Research & Development, in order to offer even more intuitive and efficient solutions and accelerate international commercial deployment.   Decarbonisation of maritime transportation Binding regulations, including European carbon quotas or IMO commitment to reduce emissions by 50% Maritime transportation represents 90% of the volume of global merchandise trade and is responsible for approximately 3% of carbon emissions globally, more than a billion tonnes each year. According to the International Maritime Organization (IMO), in the absence of robust measures, the environmental footprint of maritime transportation could generate 17% of greenhouse gas emissions by 2050. Binding regulations, including European carbon quotas or IMO commitment to reduce emissions by 50%, are gradually coming into force and requiring ship operators to adopt strong measures to improve their energy efficiency.  Energy transition Through this funding round, Syroco is strengthening its position as a key player in the decarbonisation of maritime transportation. The Syroco solution has been highlighted by several institutions selecting the most effective solutions in terms of energy transition, including The Arch. Syroco is also part of the French Blue Tech Index and was recognised as one of the 150 most innovative companies in maritime. Digital twin, data and artificial intelligence The solution offered by Syroco is based on accurate weather and sea data The solution offered by Syroco is based on accurate weather and sea data. It uses a digital twin (virtual representation mimicking the characteristics and behaviour of the ship), based on data and artificial intelligence, to calculate an optimised trajectory. The suggested route, constantly updated, takes into account operating constraints, including arrival time, seakeeping, navigation safety, and cargo-specific operational parameters. The accuracy and performance of the solution, as well as its user-friendly and intuitive interface, drive the confidence of captains.   R&D investments Alex Caizergues, CEO and Co-Founder of Syroco, explained, "Thanks to this round of funding, we will continue our investments in Research & Development to provide our users with an always more intuitive solution and always more relevant recommendations, in order to reduce the consumption and emissions of their vessels." Alex Caizergues adds, "We will also accelerate the deployment of our global commercial operations in major shipping regions." Energy efficiency tool Fanny Picard, President of Alter Equity, stated, "Syroco appears to have developed the best energy efficiency tool for maritime transportation in terms of both the accuracy of their technology and its use by ship captains." Fanny Picard adds, "We are convinced by the huge potential of the platform for CO2 emissions avoidance, which should quickly reach several million tonnes. We are proud to support the team through our 29th investment and the very first of our third fund." Sustainable economy Isabelle de Cremoux, Chairman of the Board of Seventure Partners, concluded, "We are convinced that technological innovation is a powerful lever to accelerate the transition to a sustainable economy and fight against climate change." Isabelle de Cremoux adds, "By supporting Syroco, we are investing in a solution with a high environmental impact, which allows maritime transportation to significantly reduce its carbon footprint thanks to a reduction in fuel consumption. Support for Syroco’s development illustrates the commitment of Blue Forward FundTM as an investor: combine economic performance and environmental benefits through immediately actionable solutions for a more efficient and sustainable maritime industry."

According to a new DNV white paper outlining FuelEU Maritime requirements and compliance strategies for shipowners, compliance with the upcoming regulations will be expensive but applying certain strategies can significantly reduce the cost. FuelEU Maritime regulation Effective from 1 January 2025, the rules mandate stringent greenhouse gas (GHG) emission intensity requirements for ships over 5,000 gross tonnage (GT) transporting cargo or passengers for commercial purposes in the EU/ EEA. GHG emissions are calculated from a well-to-wake perspective.  In addition to emissions from onboard combustion, this calculation also includes emissions related to the extraction, cultivation, production, and transport of the fuel. The regulation includes provisions for crediting ships using wind-assisted propulsion. Cost-effective strategy The adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime The DNV paper provides shipowners with insights to reduce compliance expenses and avoid major penalties. It contains a comprehensive overview of the regulation, including a case study that highlights a range of different compliance strategies. This shows how the adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime compared to using Bio-MGO as a compliance option. Requirements and compliance options Knut Ørbeck-Nilssen, DNV Maritime CEO, said, “It is essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation to make informed business decisions." "Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance at reduced costs." Operational and commercial integrity “Just paying the penalty could prove a more costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements." "Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.” Report recommendations The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimising costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain. Net-zero framework International Maritime Organisation is also set to introduce similar regulations shortly, with a net-zero framework A key point emphasised in the report is that the International Maritime Organisation is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the fall of 2025 and come into force around mid-2027. Essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation so that they are equipped to make informed business decisions. Reducing costs  Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance and significantly reduce costs. “Doing nothing and paying the penalty could prove to be a costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The push towards decarbonisation is slowing down rather than speeding up. With ambitious global goals looming ever larger on the horizon, what can they do to re-invigorate collective efforts? And profit from that push?   Ahead of next year’s Nor-Shipping, Knut Ørbeck-Nilssen, CEO Maritime DNV, says efficiency, timing and people are critical to “getting this show on the road.” Reduction by 2030 The scale is the IMO goals of a 20% emissions reduction by 2030, a 70% cut by 2040 Given the subject matter, Knut Ørbeck-Nilssen seems remarkably optimistic. “I’m a glass-half-full kind of guy,” comments the man in charge of maritime at the world’s pioneering classification society with a smile. “But I’m also a realist, and that means I’m aware of the scale of what lies ahead, and the need for pragmatic decision-making.” What lies ahead is decarbonisation, and the scale is the IMO goals of a 20% emissions reduction by 2030, a 70% cut by 2040, and full-scale decarbonisation by or around 2050. Competitive advantage Goals that, on the trajectory, Ørbeck-Nilssen says they have “very little” chance of making. There’s a need, he stresses, for the industry to “get its foot on the accelerator.” However, he’s also keen to paint a picture that isn’t exclusively coloured green: “The fact of the matter is it makes as much commercial as environmental sense. There’s competitive advantage waiting for those owners and operators prepared to think differently and adopt innovation here.” Green fuel challenge Total global production of these energy sources is only expected to reach between 44 and 63 Mtoe Starting in the slow lane, the DNV chief nods to low scrapping volumes as a key indicator of glacial fleet renewal. This is unsurprising, he opines, in the context of high charter rates, continued uncertainty over long-term solutions (and the scale of investment required in those) and the lack of adequate progress in green fuel supply. Here he points to DNV’s recent Maritime Forecast to 2050, which details that for shipping to meet its 2030 target, the industry will need to secure between 7 and 48 Mtoe of carbon-neutral fuels. However, total global production of these energy sources is only expected to reach between 44 and 63 Mtoe by that juncture. “The cross-sector demand will be huge,” Ørbeck-Nilssen states, “from other transport modes, manufacturing, domestic supply, further industrial consumers, and more. Shipping has to stand in line here, so what can we do?” Small steps, huge gains Ørbeck-Nilssen is a long-time exponent of a “don’t let perfect be the enemy of good” philosophy, actively supporting the adoption of “less emitting” fuels, such as LNG, instead of waiting for shipping’s next silver bullet. He’s pleased by the growth of dual-fuel solutions on the order book for the years to come, but they want to shift focus to what can be done “right now, today” to start making the gains – both green and ‘greenback’ – all stakeholders want to see. Fuel consumption The Maritime Forecast report stressed that active and technical energy efficiency fuel consumption “Reducing energy losses, in other words, greater efficiency, is the most straightforward way for the global fleet to cut fuel consumption, emissions, and, by extension, energy costs,” he says. Here he refers back to the Maritime Forecast report, which highlighted that operational and technical energy efficiency measures could cut fuel consumption by between 4 and 16% by 2030. “Which, in itself, is a very large step on the way to that first IMO goal,” Ørbeck-Nilssen stresses. Carbon-neutral fuel Just to put those percentage figures into context, 16%, on the scale of the world fleet, is the equivalent of operating the 55,000 smallest ships, or the 2,500 largest vessels, with completely carbon-neutral fuel. In other words, a giant slice of 120 MtCO2 out of the current emissions pie. Or, from a bottom-line perspective, almost a fifth of current fuel costs. It’s time, he suggests, to “harvest the low-hanging fruit.” Carrots not sticks Wind-assisted propulsion, for example, hangs heavy on the bough, with proven solutions able to deliver There’s plenty of technology, Ørbeck-Nilssen states, that’s ripe with opportunity. Wind-assisted propulsion, for example, hangs heavy on the bough, with proven solutions able to deliver immediate gains from a readily available, free and inexhaustible energy source requiring zero infrastructure or supply development. Air lubrication on hulls also delivers powerful energy efficiencies, as does waste heat recovery systems, battery hybridisation and greater utilisation of shore power. Unlocking significant benefits Digitalisation is, of course, enduringly high on the agenda, with speed, route and performance optimisation, as well as ‘just in time arrivals’ capable of unlocking significant benefits. However, rather than listing everything, he prefers to stress the “menu” of choices, noting: “Clearly, not everything will be suitable for every vessel or business, so it’s up to the owners to gauge what solutions are the best fit for their individual assets, operations and strategies. Getting that combination right can pay huge dividends.” Smarter to frame discussions Retrofitting new bulbous bows on container ships enters the panel, with these alone capable of giving efficiencies As proof of this, retrofitting new bulbous bows on container ships enters the conversation, with these alone capable of delivering efficiencies of up to 10-15%. “You can choose to look at that as an environmental issue,” he says, “but shipping is a business, and that should provide a strong business case for any owner.” It is, he suggests, sometimes smarter to frame discussions around the carrot of commercial gain, rather than the stick of penalties, or guilt for that matter. “Payback time on these solutions is often very short,” he adds, “and from there on in it’s pure savings, and competitive advantage.” Corridors of opportunity In terms of impact, Ørbeck-Nilssen says onboard carbon capture (OCC) may not get the column space, or interest levels, it deserves, as, in his words, it’s “arguably the most effective single way to decarbonise shipping.” However, as with the aforementioned green fuels, it’s not as straightforward as the smorgasbord of available efficiency measures. “There’s an infrastructure requirement that needs to be satisfied,” he comments. “The technology for onboard capture is already maturing, but we need to have the reception facilities, and other handling infrastructure, in place. This could be vital taking the pressure off of green fuel supply, so this should be a prioritised area of focus.” Carbon capture corridors He’s sees ‘carbon capture corridors’ as a means of facilitating greater development, with agreements between key hubs to create the required infrastructure, thus opening up major green routes and showcasing potential to the rest of the industry. “We have to invest in these first steps for the sake of wider future progress,” he stresses, “and for that we need stronger headline collaborations.” Nor-Shipping partnership One of the key reasons DNV continues to play such a prominent role in Nor-Shipping With multiple pathways of opportunity ahead of them, continuing uncertainty (both energy-wise and geopolitically) and the pressing need for collaboration, Ørbeck-Nilssen says they need to turn to the industry’s greatest asset – it’s people. This, he says, is one of the key reasons DNV continues to play such a prominent role in Nor-Shipping, where it is one of the two main partners (along with DNB) for the 2025 programme. Future with confidence “Firstly, I have to say Nor-Shipping has a knack of staying relevant,” he states, “and I think that is kind of summed up by the theme of the 2025 show (#future-proof). That sits perfectly with what I’ve been discussing today – the solutions that can help our industry navigate the future with confidence." “But I think one of its prime strengths is its capacity to bring such a broad range of international stakeholders together in the same place, to discuss the issues that really matter. When facing the challenges we do today, knowledge sharing, partnerships and accessing innovation are absolutely critical to progress. I mean, shipping moves the world forwards – look at our spirit of discovery and innovation – and platforms like Nor-Shipping are essential for enabling that.” Important challenges Finishing on the future-proof focus, Ørbeck-Nilssen also stresses the need to attract the right new people to the industry to make good on the potential he so clearly identifies. “Recruiting talent from the next generation is perhaps one of the most important challenges ahead,” he says. “Young people will be essential to finding solutions, both on vessels and on shore, that will, I hope, allow us to accelerate towards those all-important goals.” And, given the competition from other industries, does he believe this is possible? “Absolutely,” he says, “this is a fascinating career, with huge opportunities. And, of course, I’m a glass-half-full kind of guy.”

Liquid natural gas (LNG) can avoid concerns about global warming in the maritime industry – to a point. LNG is a carbon-based fuel but yields lower emissions than current fuels used in the maritime industry, thus enabling compliance with International Maritime Organization (IMO) goals to address greenhouse gas emissions. LNG offers an attractive transition route until even more environmentally friendly approaches become practical, although costs to transition existing vessels to LNG are cost-prohibitive. LNG is gaining more favour among dual-fuel new building contracts, using either LNG or conventional liquid marine fuels. Pre-liquefaction process When natural gas is cooled to minus 162 degrees C (minus 259 degrees F), it turns it into a liquid. Liquefaction reduces the volume to 1/600 of that of gas. Emissions from LNG are drastically lower than those of traditional heavy fuel oil. LNG removes sulphur in the pre-liquefaction process, so it emits almost no sulphur oxides (SOx) or particulate matter (PM) when burned, and it emits 90% less nitrogen oxide (NOx), and about a fourth less carbon dioxide (CO2). Emissions from LNG are drastically lower than those of traditional heavy fuel oil LNG is also relatively safe because its specific gravity is lighter than air, it is easy to diffuse, and there is less risk of explosion. One concern for transitioning to LNG is bunkering, in effect, the need for more supply infrastructure at port facilities to serve LNG-powered ships. Currently, the bunkering infrastructure can deliver LNG to 96 ports, with an additional 55 ports in the process of transitioning. There has also been an increase in ship-to-ship bunkering. Reducing CO2 emissions Although transitioning older ships to LNG is expensive, so are the alternatives, such as scrubbers and very low sulphur fuel oil (VLSFO). Because VLSFO does not affect CO2 emissions, the fuel is inadequate to achieve the IMO goal of reducing CO2 emissions by more than 40% in 2030 compared to 2008. The Poseidon Principles are a framework for integrating climate consideration into lending decisions to promote decarbonisation. The framework is prompting some lenders to favour financing of LNG-powered vessels over those using traditional fuel oil. Transitioning to LNG can help fill the gap until new decarbonisation technologies come online and become more practical, including hydrogen, ammonia, rotor sail/batteries and methanol. Deep-sea shipping LNG is the only alternative to traditional marine fuel oils that is commercially variable for deep-sea shipping Since the first LNG-fuelled vessel came into service in 2000, the number of vessels using LNG has grown 20% to 40% per year. In 2020, there were 175 LNG-fuelled ships in operation, and another 200 on order. These numbers are in addition to the 600 or so LNG carriers, which use boil-off gas in their propulsion systems. By investing in LNG-fuelled vessels now, ship owners can realise immediate greenhouse gas (GHG) benefits – up to 28% on a tank-to-wake basis, including the impact of methane emissions, says SEA-LNG, a multi-sector industry coalition seeking to accelerate the adoption of liquefied natural gas. LNG is the only alternative to traditional marine fuel oils that is commercially variable for deep-sea shipping, says SEA-LNG. Worldwide gas consumption LNG is a widely available global commodity with 21 countries exporting to 42 importers and accounting for approximately 11% of worldwide gas consumption. Currently, LNG is a tight market, as strong power and gas demand in Asia has pulled LNG away from Europe. Combining to tighten the market is a 2021 post-COVID economic recovery and a cold winter in 2021. LNG buyers seeking to avoid shortages in the winter of 2022 triggered a price rally. Drought in South America has further limited hydroelectric output and pulled volume from the Atlantic’s LNG supply. Also, several LNG facilities experienced outages that decreased supply.