It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Tuesday, April 04, 2023
Allision Damage Forces Indonesian Ferry to Intentionally Run Aground
On Sunday, a ferry struck an anchored ro/pax off the northwestern tip of Java, Indonesia, prompting the crew of the stricken vessel to intentionally ground their ship.
At about 0700 hours on Sunday morning, the ferry Mabuhay Nusuntara approached the ro/pax KMP Labitra Karina (ex name Superflex Mike) as the latter vessel lay at anchor at the port of Merak, Banten province. The crew of the Labitra noticed that the Nusuntara was on a collision course, and they attempted to contact the approaching ship multiple times over VHF, a regional transport safety official told Detik News.
The Mabuhay did not respond to the VHF calls and continued to approach until she struck the Labitra, causing multiple hull penetrations and flooding. Realizing the risk of sinking, the crew of Labitra started the engine, heaved anchor and ran their ship aground in shallow waters off Hotel Marak Beach, the official said. A spokesman for the Labitra's operator confirmed that the master had been instructed to intentionally ground the vessel.
The crew of the Labitra successfully evacuated, except for a small number who stayed behind to manage the casualty response. No passengers were aboard at the time, and no injuries were reported.
It was the second allision involving the Mabuhay Nusuntara in as many months. In February, the ro/pax ship struck a car loading ramp at a pier in Merak, damaging the ramp.
Captain Lost “Situational Awareness” Causing $7.7M Damage to Ferry
An initial report has been released detailing the July 2022 allision of Washington State Ferries’ vessel that caused an estimated $7.7 million worth of damage after it struck a piling as it approaches its pier near Seattle. The report concludes it was human error but can not provide details because the captain at the helm has refused to cooperate and instead resigned from the company. The Washington State Department of Transportation however proceeded with a series of safety upgrades in advance of separate reports which are still pending from the U.S. Coast Guard and National Transportation Safety Board.
The incident occurred on July 28, 2022, as the ferry Cathlamet was approaching the Fauntleroy Ferry Terminal near Seattle after a trip from the Vashon Island Ferry Terminal. The weather was clear with negligible wind and an ebbing tide when at 8:13 a.m. the vessel struck the south dolphin as it was approaching its berth at the end of an approximately 10-minute trip. There was one minor injury to a passenger, however, one vehicle was extensively damaged in addition to the structural damage to the ferry. The dolphin it hit was sheared off with additional damage to the surrounding structure.
Washington State Ferries launched its internal investigation in addition to the USCG and NTSB. They interviewed the crew and report that in addition to the crew on duty a second captain and crew were aboard who provided additional information. One of the challenges for the investigation was that the vessel at the time lacked a Voyage Data Recorder.
Piecing together the details they report “the Cathlamet had an allision with the south dolphin at FAU dock at approximately 15 knots.” The captain on duty assumed direct control over the maneuvering of the vessel in preparation for the landing at a position approximately 0.5 nautical miles off the terminal which was customary and up to that point all the settings were found to be as they should have been on the equipment and position of the rudder.
“The Cathlamet did not slow its speed as it approached the FAU dock per the Safety Management System and prudent navigation,” WSF writes in its report. After the allision, the Quartermaster reports the captain asked, “what happened?”
The second captain aboard the vessel who was due to take command shortly after the accident was in the cabin at the time of the accident and told investigators, “When the allision happened, I knew immediately that it wasn’t just a bump off a wing wall.” He rushed to the bridge where he found the captain attempting to back the ferry out after it had briefly grounded. The second captain relieved the captain and maneuvered the vessel to the dock.
“It can be concluded that the captain lost situational awareness while standing at the helm landing the vessel,” the WSF report resolved. They have been unable to determine why, noting that the unnamed captain resigned the next day and has not provided an explanation as to what happened. They also found that the Quartermaster was distracted from his primary responsibility of acting as a lookout because he was reading a report and that the captain failed to log actions that were part of the docking procedure.
Drug and alcohol tests were conducted and came back negative and the vessel which was built in 1981 was found to functioning normally with no mechanical issues meaning the cause of the accident is currently subject to speculation. The USCG and NTSB reports expected at a later date might provide additional details.
Washington State Ferries however did find that cost-cutting had reduced some non-mandatory training which shall be reinstated starting in the summer of 2023. As a result of the internal investigation, additional policies and training are under development, while a safety notice reinforcing landing procedures was immediately sent following the event. In addition, “black box” data recorders have been installed aboard the Cathlamet and will become standard equipment on all Washington State ferries.
Uruguay's New Offshore E&P Leases Overlap Proposed Marine Parks
Experts are perplexed that areas designated priorities for protection overlap with offshore oil concessions
[By Lucía Cuberos]
Uruguay’s coasts are valuable for its tourism, fishing, shipping and trade. But, in a country whose renewable energy efforts have seen it dubbed an environmental “success story”, marine conservation remains a challenge.
Back in 2016, under the UN’s Sustainable Development Goal 14, the Uruguayan government committed to protecting 10% of its coastal and marine area by 2020. Yet less than 1% are protected today.
It would seem difficult for Uruguay to contribute its share of the global target, established at the recent COP15 biodiversity talks in Canada, of protecting 30% of the ocean by 2030.
Uruguayan authorities are, however, working on plans to ensure the percentage reaches double digits soon. If realised, these plans could see Uruguay improve on its position as a marine protected area (MPA) laggard.
But just as it looks to boost conservation, the government has also authorised fossil fuel companies to explore for oil offshore, in areas that overlap with priority areas for protection. Environmental organisations and experts have described this move as a contradiction; as have members of the administration itself, who argue it goes against the country’s climate commitments.
Protect and exploit?
In 2022, the state hydrocarbons company, ANCAP, awarded six offshore concessions to explore for oil and gas in Uruguayan waters to private international firms including subsidiaries of Shell.
The news was poorly received by the environment ministry. Gerardo Amarilla, the ministry’s undersecretary, said the initiative “seems a contradiction in terms in the 21st century”, with fossil fuels something “that humanity is trying to leave in the past”.
In order to establish what needs protecting from possible offshore oil activity, two environment ministry bodies began a two-year study of the country’s waters in 2020. They then prepared a report which identified eight marine sites of priority for conservation.
Uruguay’s priority areas for marine conservation overlap with offshore oil concessions. Data source: Uruguay Ministry of Environment / ANCAP
In the document, published in December, the experts described the country’s progress on MPAs to date as “scarce”, highlighting that just 0.7% of its aquatic territory is currently protected under the National System of Protected Areas (SNAP), and that these are exclusively coastal areas.
“We want to have clear rules in advance,” Amarilla said of the report and the country’s offshore exploration plans. He said the idea is for the document to be the starting point for Uruguay to reach 10% of its waters under protection, by limiting activities that could harm these ecosystems. However, he acknowledged that the ministry is still seeking international support and funding, so while there are hopes to make considerable progress, it cannot guarantee all plans will be realised by the end of 2023.
“This technical report and the ministerial decision to authorise it are a clear signal from the Uruguayan state to companies interested in offshore exploration that there are environmentally fragile riches [in the seas] that the country is willing to protect from future operations,” Amarilla said.
Alicia Torres, an environmental advisor to the National Energy Directorate of the Ministry of Industry, Energy and Mining, told China Dialogue Ocean that the situation need not be a case of either/or. She said oil exploration and the creation of new MPAs “can coexist”, and claimed that the government’s offshore intentions “do not contradict” its policies to promote green energy.
Oil exploration “provides information on the resources we have, even if they do not end up being used,” she said. “These are studies that involve huge investments and that would be paid for by the companies.”
The advisor was keen to highlight that although Uruguay generates the vast majority of its electricity from renewables, the world is on the whole still consuming oil: “If there is still a long way to go [in the transition from fossil fuels] and the country has a resource it can use, would it give up using it when it could generate greater benefits for its society?”
Offshore oil plans
Uruguay’s offshore oil concessions have been awarded to a range of international firms: Block 6 is in the hands of US-based APA Corporation; British-Dutch giant Shell was awarded blocks 2 and 7; London-listed Challenger Energy Group will focus on Block 1; Block 4 was awarded to a consortium of Shell Group companies, APA and BG International Limited; and Block 5 went to Argentina’s state energy company YPF.
Speaking to China Dialogue Ocean, ANCAP’s general manager, Ignacio Horvath, claimed that there is “no dichotomy between renewable energies and those of fossil origin”, but rather it is a process of energy transition between them. He reported that currently 42% of the energy consumed in Uruguay comes from hydrocarbons, which are used mainly in transport; at the global level, about 80% of energy is supplied by fossil fuels. Although the goal is to reduce the use of carbon-intensive sources, Horvarth said “it is not possible to stop using them in an instant.”
Horvath explained that the Uruguayan government is proposing to start producing this resource instead of importing it. “Crude oil has to come from somewhere,” he said, so it is better to ensure that it is produced in, he claimed, a “sustainable, responsible and controlled” way, while seeking to reduce emissions.
“This does not go against the efforts that Uruguay is making in terms of renewables, nor does it go against environmental agreements,” Horvath claimed, but he acknowledged that it is still necessary to adapt to demand.
The International Energy Agency (EIA) has said exploitation and development of new oil and gas fields must stop now if the world is to stay within safe limits of climate change and meet the targets of the Paris Agreement.
Horvath said that MPAs in Uruguayan waters “can coexist without problems” with seismic exploration for oil and gas. Some evidence suggests that the seismic method, which uses sound waves, can be harmful to species such as whales and dolphins. For the ANCAP manager, “it is natural” that certain parts of Uruguay’s sea should be protected. The important thing is that there is clear regulation on how such areas are to be treated, he added.
Southern right whales in the Valdes Peninsula, Argentina. Sound waves from seismic exploration may be harmful to cetaceans like these. (Image: Alamy)
“Exploration can be done in a responsible way, in compliance with all the regulations and with all the environmental precautions, which is what has been done in previous explorations,” Horvath said. “If all precautions are taken, there is no need to interfere with marine fauna.”
Proposed MPAs
According to the Ministry of Environment’s report, the eight potential MPAs have been proposed because they include “unique species that make them a priority for conservation.” The areas are also said to be associated with oceanographic and ecological processes “of great ecosystemic relevance”.
The first proposed site is Banco Inglés, a shallow sandy formation 40 kilometres south-east of the capital Montevideo. It constitutes a habitat for molluscs, and food and shelter for deep-dwelling fish, the report states.
The second is Isla de Lobos, an island eight kilometres south of the resort city of Punta del Este, and its surrounding waters. Covering some 44 hectares, this area is home to one of the largest permanent colonies of sea lions and fur seals on the continent. In addition, it contains mussel beds that provide habitat for invertebrates and fish, and is an “important part of the migration route of the southern right whale,” the report adds. The area has already been proposed as an MPA by civil society organisations, and the SNAP’s National Advisory Commission started discussing it in December 2021.
Colony of sea lions and fur seals at Isla de Lobos, home to one of the largest permanent colonies of these species on the continent (Image: Jimmy Baikovicius / Flickr, CC BY SA)
The third proposed site is the “Restinga del pez limón”, an area of seabed formations located at depths of 20 to 40 metres at the mouth of the Río de la Plata, where fish species of “ecosystemic and commercial importance” seek refuge and food.
The fourth site is El Pozo de Fango, which is located on the coastal shelf near Punta del Este and is particularly important for sharks and rays.
The fifth is described only as “Mollusc beds of special interest”, where shoals of mussels, oysters, octopus, snails, squid and hermit crabs can be found. It is also a site of special relevance for sharks including the angel shark, bull shark, catshark and copper shark, the report says.
The sixth is described as a “nursery area”, considered a “habitat of ecological relevance” for hake and other species, given the pressures on their numbers from fishing.
The seventh is the “continental slope and its deep-sea corals”, another area that has been studied for conservation since 2021. It extends from 200 to 1,000 metres below sea level and includes seven submarine canyons that have not yet been explored. In turn, they contribute to the formation of coral mounds, which serve as refuges and nursery grounds for many species. Lobsters, orcas, swordfish and blue sharks have been identified in their vicinity.
The importance of these areas has garnered international attention. National Geographic, through its Pristine Seas programme, has carried out two expeditions in Uruguayan waters to document biodiversity there. The first, in March 2021, carried out along with Uruguayan researchers, the national navy, civil society representatives and government authorities, focused on the area of the continental slope; the second, took place at the end of the same year around Isla de Lobos.
Alex Muñoz, Pristine Seas director for Latin America, told China Dialogue that “both places proved to be of enormous ecological relevance at a global level.” After the expeditions, the team submitted two reports to government authorities to promote the prioritisation of these areas.
In recent years, Muñoz said, “the whole world has realised that the sea is in crisis”, and that the creation of MPAs is necessary “to restore the ocean to its former productivity”, given the effects of overexploitation. There is increased awareness of the need to protect biodiversity in the face of accelerated species extinction, and to mitigate the effects of climate change on the ocean.
“Uruguay has been one of the countries that has made the least progress in the world in the creation of MPAs,” Muñoz said.
He welcomed the Uruguay Azul 2030 (Blue Uruguay 2030) plan released in 2022 by the national government, which outlines a marine spatial planning process for the coming decades.
However, Muñoz said it is essential that any MPAs created have significant restrictions “so that they are not just lines in the water”. These sites, he added, should be protected so that species can reproduce and thus become more abundant. “There is no need to be afraid of MPAs. These areas are seedbeds where species can recover and thus give more vigour to the fishing sector outside their boundaries.”
On ANCAP’s offshore oil plans, Muñoz commented that the world needs to move away from fossil fuels as soon as possible: “It is hard to understand why Uruguay is still betting on offshore hydrocarbon exploration when the entire international community is trying to find alternative sources of energy to move the economy.”
Several of the proposed MPAs are located in areas where ANCAP has authorised offshore oil exploration. Muñoz explained that the offshore exploration and exploitation of hydrocarbons often has very serious environmental consequences, due to accidents and poor risk management.
Andrés Milessi, a marine biologist and coordinator of the Un Solo Mar (One Sea) project, which promotes MPAs in Uruguay, echoed Muñoz’s points. While he welcomed the Uruguay Azul roadmap, he said that some of the areas suggested – such as El Pozo de Fango, Restinga del pez limón and mollusc beds – “fell short” in terms of their size, and that more research is needed. “There is a lack of long-term studies, of sampling maintained over time,” he said.
Expectations for the future
Although Uruguay has backed the goal of 30% of the global ocean being protected by 2030, the environment ministry’s Amarilla claimed that “the country has not formally committed itself” and is not obliged to reach that percentage in its seas.
Mariana Ríos, head of the Marine Coastal Management Department of the Ministry of the Environment, told China Dialogue Ocean that conservation in Uruguayan waters is to be done via marine spatial planning. This allows for the identification of the most fragile sites in ecosystemic terms, the composition of their biodiversity, the services they provide and the oceanographic characteristics they possess, as well as their link with socio-economic activities.
The aim, Ríos added, is to evaluate all of Uruguay’s marine as a basis for designing a network of MPAs, but also for the evaluation of new projects in the marine space, including for example hydrocarbon exploration activities. In this way, the impacts of projects could be mitigated and biodiversity could be managed sustainably, she said.
Lucía Cuberos is a journalist based in Uruguay. She writes for Búsqueda magazine
This article appears courtesy of China Dialogue Ocean and may be found in its original form here.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
Ørsted Moves Ahead With Additional Offshore Wind Sites off Taiwan
The Danish offshore wind developer Ørsted has taken a final investment decision to build the 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan. These are among the four sites in the Taiwan Strait where Ørsted is developing 2.4 GW of offshore wind energy, all located about 20-30 nm off the coast of Changhua County, Taiwan.
The other two sites include the 900MW Greater Changhua 1 and 2a, whose construction begun in 2019 and commissioning of the wind farm’s last turbines is expected before end of this year. The Greater Changhua 1 hosts the world first pilot ReCoral concept by Ørsted, a project that sets out to discover whether offshore wind turbine foundations could provide an additional home where corals have the potential to flourish.
The 920 MW grid capacity of Greater Changhua 2b and 4 was awarded in June 2018 in Taiwan’s first competitive price-based auction, with no mandatory local content requirements.
Ørsted secured long-term revenues for the project by signing a corporate power purchase agreement (CPPA) in July 2020 with Taiwan Semiconductor Manufacturing Limited (TSMC), the largest contract of its kind in renewable energy.
According to Ørsted, the Greater Changhua 2b and 4 projects will be funded by capital provided by the company combined with debt capital sourced from the domestic Taiwanese market. The two offshore wind farms have already obtained all environmental impact assessment approvals.
The construction will begin this year and commissioning of the wind farms is expected in 2025.
“The sites’ investment decision demonstrates that Ørsted is primed and ready to build and operate large-scale offshore wind projects in Taiwan. We have full confidence that we will fulfill our commitments to the grid contract with the Taiwan authorities and the CPPA with TSMC,” said Per Mejnert Kristensen, President of Ørsted Asia Pacific.
Ørsted is also eyeing additional sites 20 nm off the coast of Taichung. The company is the biggest shareholder and co-owner of Taiwan’s first commercial-scale offshore wind project, Formosa 1, which was extended from a capacity of 8MW to 128 MW in 2019.
Philippines and CIP Agree to First Foreign-Owned Offshore Wind Farms
The Philippines Department of Energy signed contracts with Copenhagen Infrastructure New Markets Fund, an affiliate of Danish fund manager Copenhagen Infrastructure Partners, for what will become the country’s first wholly foreign-owned offshore wind projects. The contracts call for three wind farms with a combined capacity of 2,000 MW to be built by the Danish organization and run under 25-year operating licenses. The county has onshore wind power but is yet to start its first offshore project.
The Philippines recently lifted foreign ownership restrictions on renewable energy development. It is part of a program outlined by President Ferdinand Marcos, Jr. to accelerate the development of renewable sources of energy for the country. Niels Holst, Partner in CIP and head of CINMF, said the removal of foreign ownership restrictions on renewable energy projects in the Philippines in 2022 was an important development for his company as it gave them positive signals to launch investments in the country.
“We are pleased with the entry of CINMF, a dedicated fund manager with greenfield renewable energy investments and one of the global leaders in offshore wind,” said Energy Secretary Raphael P.M. Lotilla. “They will be bringing in financial muscle and technological heft and will be working with Filipino partners throughout the construction and operation phases.”
The three projects are to be developed in Camarines Norte and Camarines Sur, offshore of Northern Samar, and offshore of Pangasinan and La Union. Once implemented, the three projects are expected to create around 4,500 jobs during the development and operations period, generate enough power to supply about one million households, and offset about 2.9 million tons in CO2 emissions per year.
The Philippines and the Danish Government have a long-standing cooperation in the development of wind power in the country. The 25 MW Bangui Bay Wind Power Project, developed onshore in 2004 by the Northwind Power Development Corporation in Bangui, Ilocos Norte, was partly funded by the Danish Government through the Danish International Development Assistance (DANIDA). It was a landmark project that paved the way for developing onshore wind power projects in the country and the Southeast Asian Region.
Danish Ambassador Melbin said that the Filipino people deserve more reliable and cheaper electricity. Introducing large-scale renewable energy is the fastest way to achieve this he said.
The Philippines currently has no installed offshore wind operations. The World Bank estimates there is a potential for more than 178 GW of offshore wind in the country. Working with the World Bank, the Philippines Department of Energy last year released an initial plan for offshore wind development.
One of the country’s main power distributors, Aboitiz Power, is currently undertaking a feasibility study exploring the potential for up to 3 GW of offshore wind by 2040. They are expected to complete the study by mid-year.
The Philippines Department of Energy said to date, that 57 Offshore Wind Service Contracts have been awarded with a total potential capacity of about 42,000 MW that will be developed. The DOE targets to bring the renewable energy share in the power generation mix to 35 percent by 2030 and 50 percent by 2040 from the current 22 percent. The World Bank report set out a low estimate of just over 5 percent from offshore wind and a high growth potential to reach 40 percent of the country’s power supply from offshore sources by 2050.
TenneT Awards $25B in Contracts for Offshore Wind Power Transmission
Transmission network operator TenneT has announced a landmark package of contract awards for offshore wind cable and transmission station infrastructure in the North Sea. The $25 billion parcel of orders will supply 40 GW worth of power transmission capacity in German and Dutch waters, enabling two-thirds of the 65GW offshore wind energy target set by Germany, the Netherlands, Denmark, and Belgium.
"This is one of the most important infrastructure projects of the century; the green transformation of the energy system is key for the decarbonization of industry," said Tim Meyerjürgens, COO TenneT, in a statement Sunday. "Together we secure decisive acceleration of the offshore grid development and set the course for the future European energy landscape.”
The prime contractors include three consortia: Hitachi Energy/Petrofac, with six projects; GE/SMOP, with three projects; and GE/McDermott/Sembmarine, with two projects. Three more awards are expected to be announced soon.
Preparatory work will begin immediately, TenneT said, to ensure that the full scope will be finished on time in 2028-2031.
"We are already hiring to expand our global delivery capacity and effectively fulfill these and other orders," said Niklas Persson, Managing Director at Hitachi Energy Grid Integration.
The massive long-term contract package is part of a deliberate strategy to build and sustain a supply chain, giving vendors visibility into their project pipeline for years to come. TenneT worked with its partners to develop a standardized offshore platform, cable system and onshore substation design, which will be replicated across the portfolio. A set of much larger 2GW offshore platforms and a new 525 kilovolt HVDC power transmission system will reduce the number of grid connections required, cutting down on cost and seabed disturbance during installation. HVDC is also cheaper to build than an AC system for longer distances, and this new generation of infrastructure will be serving wind farms further offshore.
TenneT says that it has also taken long-term plans for an international subsea power transmission network into account in the design.
Work Starts on Large, Autonomous 3D Printed Ferry for Paris Olympics
Work is started on building the largest ever 3D printed ferry as part of a new project sponsored by France to highlight innovations in sustainable and autonomous shipping. Voies Navigables de France, the country’s navigation authority responsible for the management of the majority of France's inland waterways network, launched the competition along with the country’s Minister Delegate for Transport Clément Beaune to showcase innovation during the 2024 Paris Olympics and Paralympic Games.
Three winners were selected from the competition with partners Sequana Développement, Roboat, and Holland Shipyards Group being selected for their project which they say will provide “a glimpse of the future of waterborne mobility by crossing the Seine with a 3D printed, autonomous, electric passenger ferry.”
The ferry proposed by the winning consortium will have dimensions of approximately 29.5 feet by 12.7 feet with a futuristic look based on the renderings. In their submission, the group said the vessel will be characterized by a state-of-the-art design, an autonomy system, electric propulsion, and a 3D printed hull made of recycled material. Mooring and charging will happen automatically. It will have a capacity for up to 35 people and achieve Level 4 automation.
“The 3D print build method opens up a new exciting chapter in shipbuilding,” says Leendert Hoogendoorn, director Holland Shipyards Group. Work on “building” or “printing” the vessel began today.
The ferry is to be deployed in the summer of 2024 in a key location in the vicinity of the major sporting events and will enable visitors to Paris and athletes to fulfill their mobility needs in a new and environmentally friendly manner. Details on the exact location where the ferry will be operating will be announced closer to the start of games.
"Keel laying" for the largest ever 3D printed autonomous ferry (Holland Shipyards Group) "From 10 to 50 seats, the three demonstrator projects that we have selected all have one thing in common, beyond their driving autonomy and their low-carbon engines, they have the ambition to contribute to the objectives of environmental excellence of games and to be part of the legacy of 2024," said Thierry Guimbaud, Managing Director of VNF, when the selection was announced in December 2022.
The two other projects that were selected call for the construction of a 49-foot electric powered river boat. It will have a capacity for 50 people. Hyke Rivercat, Juvisy, and Ris Orangis Construction partnered for this project. The third project is for a 39-foot river boat with 12 seats that will also be 100 percent electric propulsion. This project involves Bluenav, Orion naval engineering, Drone Protect System, Keolis, E nautical harbor Bordeaux and Metropolis of Bordeaux.
VNF is supporting France’s efforts at hosting the historic games by developing a plan to maintain commercial navigation during this summer’s events. The athletes’ village is to be located along the Seine with the efforts leading to the greening of the fleet and integration of sustainable transport into the program. The opening ceremonies reportedly will take place in part on the Seine.
Hyke Rivercat and its team proposed an electic powered riverboat
SAFE Boats Becomes 100% Employee-Owned Company
SAFE Boats International, a leading designer and manufacturer of aluminum watercraft ranging in size from 21 to more than 100 feet, has completed a transaction that transfers 100% of the company’s ownership to its employees. The SAFE Boats International Employee Stock Ownership Plan (ESOP) has acquired the company, completing the final milestone in a journey that started in late 2022.
SAFE Boats has experienced dramatic growth since its beginning in 1996 and now has more than 250 employee-owners in two locations. The company has been honored with several significant contract awards, including the USCG Response Boat-Small (540 boats), USCG Special Purpose Craft-Law Enforcement (58 boats), US Customs and Border Protection Coastal Interceptor Vessel (52 boats), and the flagship USN MK VI Patrol Boat (12 boats for the US Navy and 8 boats for the Ukrainian Navy). Each of these major contracts – combined with a loyal domestic customer base of more than 160 state and local agencies and international customers in 70 countries – has established the company as a leading and trusted designer and manufacturer of high-performance aluminum watercraft.
“It has always been our dream and our vision to make SAFE Boats International about our team and the community we live in,” remarked company co-founder Scott Peterson. “Transitioning to a 100% employee-owned company creates the foundation to become a true Northwest legacy. This allows an incredibly talented and dedicated SAFE Boats team to continue supporting the men and women in uniform around the world for generations to come.”
Richard Schwarz, CEO, said, “SAFE Boats’ success reflects the dedication and commitment of its team of talented craftspeople. Employee ownership through an ESOP is the ultimate opportunity for the company’s employee-owners to share in that success. In the end, it is our team that makes our company what it is, and it is only appropriate that they benefit from the results of their contributions.”
SAFE Designs Autonomous Survey Boat for Jones Act Wind Market
Washington shipbuilder SAFE Boats has unveiled its design for a new self-driving, turnkey hydrographic survey vessel, created in collaboration with autonomy startup Mythos AI. The vessel would be Jones Act compliant and purpose-built for the needs of U.S. offshore wind.
Nauticus, Ocean Infinity and Reach Subsea have announced plans to build and charter out similar vessels as autonomous survey solutions, packaged with shoreside services. However, SAFE Boats believes that Merlin is unique: it is the industry’s first geophysical vessel that can be acquired directly from the builder with a fully integrated geophysical sensor suite designed around U.S. offshore wind. Sonar builder Echo81 participated in design development and would supply the sensors and aftermarket support.
The vessel will also carry navigation technology created by Mythos AI, a maritime autonomy provider. Mythos AI’s driver-assist systems are designed to automate geophysical workflows so that skilled hydrographers and crew are not required to be onboard the vessel, according to SAFE Boats. As the technology advances, Mythos AI plans to provide a "push-button, long endurance, dock-to-dock, self-driving and self-surveying solution for offshore wind."
SAFE Boats has already delivered one smaller hydrographic survey boat for Mythos AI for use in trials, demonstration and testing.
SAFE Boats is known best for its military and law enforcement boatbuilding operations, which date back to 1996. It has 2,300 boats in service in 50 countries worldwide, including Ukraine, Nigeria, Colombia and Tunisia.
Lauritzen and Cargill Expand Methanol-Fueled Bulker Orders from Japan
The ranks of the emerging category of methanol-fueled shipping are continuing to grow with Denmark’s J. Lauritzen reporting it is ordering at least two large bulkers that will be capable of trading with zero carbon emissions when powered by green methanol and biodiesel. The vessels will be among the first bulkers in the world to adopt methanol which is rapidly growing to become one of the dominant alternative fuels rivaling liquified natural gas which had dominated the category for the past few years.
J. Lauritzen which maintains a large bulker operation that carried over 21 million tons of cargo in 2021, reports it has signed a letter of intent for 81,200 dwt Kamsarmax bulk carriers, which will be built by Tsuneishi Shipbuilding in Japan. The company says that a minimum of two methanol dual-fuel vessels will be built with their introduction expected in 2024 and 2025. Tsuneishi reported last week that it was also entering into an agreement with Mitsui & Co. for two methanol dual-fueled bulkers due in late 2025 and 2026.
The vessels will all be operated by Cargill with J. Lauritzen reporting it has a minimum of seven year agreement with Cargill. The food commodities giant has previously discussed its plans to accelerate the decarbonization of its fleet of bulkers. They have also discussed the adoption of wind-assisted propulsion as part of their broader plans.
“We are very happy with this transaction, as it is important for J. Lauritzen and Lauritzen Bulkers to participate actively in the decarbonization of the shipping industry, and we are proud to be able to do so in a visionary partnership with Cargill, who are sharing our ambition to truly drive change in our industry,” says Kristian Morch, CEO of J. Lauritzen.
Lauritzen reports that it is launching a new company, Lauritzen NexGen Shipping, which will own the new vessels. The new company will be jointly owned by J. Lauritzen and Lauritzen Bulkers and will use as a platform for further investments in zero carbon emission and future-proof assets for the shipping industry.
Tsuneishi's rendering shows the streamlining shape at the bow (Tsuneishi Shipbuilding)
Tsuneishi highlights that it will be adapting its popular Kamsarmax design which has been a best seller with over 350 vessels delivered. To maintain the large cargo capacity for the vessels, they plan to place a large methanol fuel tank on the stern. The propulsion plant design calls for a dual-fuel ship that can use methanol or traditional fuel and by sizing the tank they will be able to maintain an ample cruising distance. The design also incorporates Tsuneishi’s Aeroline proprietary technology that reduces wind resistance by approximately 20 percent. They achieve this by streamlining the bow and accommodation block. The design concepts which have been used on other vessels will be applied for the first time to the Kamsarmax bulker.
While the overall methanol order book continues to grow quickly, according to DNV’s Alternative Fuels Insight data bulkers are just beginning no adopt methanol. Of the 80 vessels that DNV calculates are currently on order and due by 2028 for methanol-fueled operation, only three were bulkers. The containership category has been the fastest to adopt methanol dual-fuel designs following product tankers that introduced methanol. Other segments such as cruise ships are also quickly adopting methanol as part of their new ship orders.
Yara and Enbridge to Develop Large Blue Ammonia Project at Texas Port
Yara Clean Ammonia and Enbridge are planning to jointly develop and construct a world-scale low-carbon blue ammonia production facility to be located in Texas. The proposed facility, which includes autothermal reforming with carbon capture, will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas.
Once operational, the production facility will be capable of supplying low-carbon ammonia to meet growing global demand, with an expected annual capacity of 1.2–1.4 million tons. Approximately 95 percent of the carbon dioxide (CO2) generated from the production process is anticipated to be captured and transported to nearby permanent geologic storage. If confirmed through the front-end engineering design (FEED) phase and approved, total project investment is expected in the range of $2.6–$2.9 billion.
If the project proceeds, Yara is expected to contract full offtake from the facility. Production start-up is tentatively expected in 2027/2028.
“Yara is pleased to be joining Enbridge in developing this significant clean ammonia project,” said Magnus Krogh Ankarstrand, President of Yara Clean Ammonia. “We are working systematically to develop project opportunities in the U.S. and this project will significantly contribute to our strategy of decarbonizing agriculture as well as serving new clean ammonia segments such as shipping fuel, power production, and ammonia as a hydrogen carrier.
Enbridge and Yara will utilize their complementary strengths to develop and execute the project. According to the companies, Yara’s industry-leading experience in ammonia development, production, operations, and distribution, combined with Enbridge’s large-scale infrastructure development expertise and world-class EIEC deep water docks and export platform, will be critical to advancing the project from development through to commercial operation.
“We are excited to partner with Yara and collaborate on this clean energy project, especially given their expertise in global ammonia projects, operations, and distribution,” said Colin Gruending, Enbridge Executive Vice President and President, Liquids Pipelines. “EIEC is well positioned to become the most sustainable export terminal in North America through low-carbon fuel production, carbon capture, and solar self-power.”
Enbridge’s Texas Eastern Transmission Pipeline is expected to provide the transportation service for feed gas that will be used for the production process, and Enbridge, along with Oxy Low Carbon Ventures, is advancing a nearby CO2 sequestration hub which is a potential destination for the project’s captured CO2.
The construction of any facilities will be subject to receipt of all necessary regulatory approvals.