Building credibility for clean technologies
Clean technologies can offer ship owners significant improvements in operational and environmental efficiencies and contribute to the sustainability of their fleets. However, in a traditional industry still very much based on conservative values, making clean technologies marketable to charterers and ship owners is a significant challenge. The technologies must demonstrate a proven ability to deliver tangible results, backed up by genuinely credible data obtained through a rigorous and transparent trial process. It is only with this foundation that manufacturers can raise themselves above the conservative parapet to increase uptake and drive sustainability within the industry.
Bringing new technologies to market within the shipping industry inevitably requires a significant period of R&D followed by a process of tank testing – where applicable – and sea trials. To ensure success, there is no room for cutting corners. Problems arise when a largely sceptical industry fails to warm to the concept of taking a particular technology on-board at a cost, without proven efficiency savings based on detailed and clear data. When this happens, not only does the manufacturer fail to sell their own technology, they also damage the reputation of all manufacturers, and in particular those who have chosen rigour and hard graft as the preferred route to market.
At Silverstream Technologies, we have pioneered air lubrication technology for more than ten years, and have taken the latter approach in bringing the Silverstream System to market. Our recent landmark sea trials, which were concluded in early 2015, have been well documented and scrutinised within the industry and positioned as a blueprint for future technology development. Funded by Shell and carried out on leading ship owner Dannebrog Rederi’s 40,000dwt vessel MT Amalienborg, the trials (which were conducted in both ballast and laden conditions) proved that the Silverstream System can confidently deliver net efficiency gains in excess of 5%. While the results are positive, it is the credibility and integrity in the delivery of the results that facilitates the translation to commercial success.
From Silverstream’s perspective, the key to delivering this credibility is partnership and honesty. Ultimately, we wanted the best team of technology and class partners as well as the right shipyard in order to provide the best possible trialling environment, determine the parameters of the trial, and set the process for analysis and verification. No stone could be left unturned and scrutiny had to be assured.
Therefore, Lloyds Register’s Ship Performance Group came on board to independently verify and report on the results of the trials, as well as classification society RINA, and hydrodynamic research experts, HSVA, who worked closely with us ahead of the trial to test the technology. BMT SMART’s Access performance monitoring systems were fitted to the vessel to record data from the trials, which took place from Danish shipyard Fayard.
The proof of market success however, is based on what happens once the sea trials have been concluded. Due to the credibility of the trials, commercial take up of the Silverstream System has been excellent. In March 2015 we announced the first installation of the Silverstream® System on the Norwegian Cruise Line vessel Norwegian Bliss, which will be delivered in Spring 2017 from one of Europe’s leading yards, Meyer Werft in Germany, and two further NCL vessels are due for delivery in 2017/ 2018. Silverstream Technologies now has a pipeline of a further 15 vessels from different vessel classes, both retrofit and newbuild.
It is fascinating when you consider that this rapid uptake is happening at a time of incredibly low oil prices, and when fuel costs are not the significant financial burden of 12 months ago. Clearly more owners and operators have recognised the commercial benefits of embracing sustainability, based on the demand from charterers to build more environmental, operational and cost efficiencies into their supply chains. Even so, as Silverstream Technologies engages with the decision makers of the industry, the clear message we are receiving is that, while there might be more liquidity in the market, a significant driver for uptake is credibility and confidence in the purchasing decision.
The Silverstream System is now confirmed as an economically viable clean technology. While this has had a positive impact on air lubrication in general, it is important that unverified technologies are not swept up in the satisfaction of our successful trial. Other manufacturers, with very different systems, must be equally transparent in demonstrating the rigour of their efficiency calculations.
The challenge now for Silverstream Technologies is to manage the scalability of the business and further develop our infrastructure from a legal, operational, marketing and branding perspective, so that the company expands and services our existing and future customer base in the right way. A significant focus has been placed on investing in new people and we have recently recruited naval architects, as well as a head of supply chain. The key is that as we grow and develop, we retain control of the brand and the technology so that quality and integrity is constantly ensured throughout the installation process.
Shipping maybe a conservative industry but there is a growing appetite for ensuring its future sustainability. When there is a financial benefit – even lower fuel bills, a more competitive business for charterers and investors – it makes good commercial sense too. Clean technology has a critical role to play in delivering this but manufacturers must commit to ensuring transparency and rigour in demonstrating efficiency benefits. Those who don’t will will stifle uptake and impact the positive reputation of clean technology in general.
