Clean Tech Growth Lifted By Partnerships With Ports
But for smaller vessels, particularly in the towage sector, guidance and regulation remain limited. To deliver decarbonisation and support the industry to reach its goals, towage operators have an opportunity to help developing port supply chains for low-carbon technologies that will help the wider maritime industry fulfil its aims.
The IMO has laid out a series of targets through the coming decades that will see emissions curbed steadily from the global merchant fleet. Regulators in large markets have developed systems that put a price on carbon emissions and build markets for carbon trading. These systems will create news incentives for operators to adopt new low-carbon technologies. However, in the European Union, the Emissions Trading System will only apply to vessels over 5000GT when it comes into effect in January, and will only be extended to smaller vessels in 2027.
For vessels below 5000GT, and especially for those vessels working regionally such as tugs, the lack of a global regulation on carbon emissions, or market-based methods, leaves a gap in the industry’s emissions reduction efforts that could slow the decarbonisation of the global towing fleet.
In short, without the pressure of targets or looming regulation, there is little encouragement for towage companies to adopt innovations or optimise their fleets to cut emissions. Rather, the sector itself must look to build partnerships across the supply chain – with technology suppliers, ports and operators – that demonstrate project and technology feasibility. In doing so, we will be able to nurture the supply of low-carbon technologies whilst simultaneously stirring demand.
Emissions in port areas are managed by regulations known as ECAs, these focus on local pollutants like sulphur and nitrogen oxides. And while management of these pollutants solves immediate local emissions concerns for port communities, they do nothing to tackle the global climate change threats we face.
The low and zero-carbon technologies that will enable operating companies to reduce their emissions and tackle the climate change threat are developing rapidly in the shipping industry. However, these technologies are often costly and come with issues of availability that are a hindrance to significant uptake and adoption. A deliberate transformation is needed to overcome these barriers and help low and zero-carbon technology supply chains to develop.
Across much of the towage industry, work is supplied by localised operators in local markets, who do not possess the economies of scale to be able to influence wider change. But, in many ports, towage operators have the potential to become reliable anchor off-takers of low-carbon fuels and users of low-carbon technology. As simple as it sounds, towage operators’ anchor role will best be realised by building partnerships across the sector to overcome issues of the price and availability of technologies.
Take biofuel, for example. Biofuel supply chains operate most efficiently at a local level. Meanwhile, tugs are naturally well-suited to using low-carbon biofuels such as HVO and FAME. In the UK, Svitzer has worked with engine OEMs to convert more than 60 tugs to operate on HVO, and we have also partnered with fuel suppliers to ensure we can run our UK fleet on the low-carbon fuel.
By working with accredited systems from the Roundtable for Sustainable Biomaterials (RSB) and the International Sustainability & Carbon Certification (ISCC), Svitzer has been able to certify the carbon emissions reductions from the use of HVO, and through its global reach, find first mover customers that are willing to commercially support the development of the HVO supply. First mover customers can benefit from the certified carbon savings for themselves, lowering their Scope 3 emissions. In addition, their action supports the continued reduction of greenhouse gas emissions within the wider maritime value chain and the development of emissions reducing fuels and technologies in the process.
Through Svitzer’s role as an anchor off-taker, we have been able to demonstrate feasibility and encourage demand for HVO in the ports where we operate. Building on this success, Svitzer is now moving forward with finding more local fuel options, as we explore the availability of Fatty Acid Methyl Ester (FAME) fuels across our port operations. Again, this needs partnerships for success, in this case collaboration with engine manufacturers to confirm compatibility with the fuel as well as finding supply chains capable of meeting operating demands. By its engagement, Svitzer sends a strong demand signal to biofuel suppliers and enables them to invest with confidence. The hope is that this small push can kickstart the ‘investment flywheel’, creating a positive feedback loop between supply and demand, whilst building resilience in low carbon fuel availability to ensure the industry is able to meet its maturing decarbonisation obligations.
Demand for low-carbon solutions in the towage industry exist today. Backed by cargo owners, early adopting operators are prepared to pay for products and services that support decarbonisation and sustainability all along the value chain. We need partnerships that combine local knowledge with global reach and strength to drive the change we need and maximise the benefits offered to us by low carbon fuels. Partnerships are crucial; between port operators, technology suppliers, off-takers and vessel owners / operators to help translate successes to ports around the world – and make an impact that is far bigger than just being confined to the vessels that we operate.
