Alberta Under Fire From Environmentalists for Restrictions on Renewable Energy

By Felicity Bradstock - Oct 19, 2024

Alberta's government has imposed restrictions on renewable energy projects, claiming that it would prioritize agriculture instead.

The restrictions have been criticized for hindering Alberta's transition to a cleaner energy future and for having little environmental justification.

Despite the restrictions, Alberta's renewable energy capacity has grown significantly in recent years, demonstrating the potential for the province to become a leader in green energy.

The Alberta government is wary of major new wind and solar energy developments due to their potential impact on the environment. However, critics say that the government is restricting green energy growth to focus on the continued production of oil and gas.

Last year, the Alberta government introduced a seven-month moratorium on green energy projects, including wind, solar, hydropower, biomass, and geothermal ventures, to focus on agricultural growth. The province’s Premier Danielle Smith said the government would be putting “agriculture first”, as well as restricting the development of renewable energy projects to at least 35 kilometers away from “pristine viewscapes” and parks and protected areas. Developers were not allowed to establish projects in areas with optimal soil conditions that could be used for agricultural activities. Smith stated, “We need to ensure that we're not sacrificing our future agricultural yields, or tourism dollars, or breathtaking viewscapes to rush renewables developments.”

In February, Smith said that the government had plans to expand the moratorium to restrict the development of solar and wind farms on Alberta's native grassland areas, as well as on irrigated and irrigable land. If these restrictions are put in place, the development of renewable energy projects may be prohibited on up to 40 percent of Alberta’s land. The viewscape limitation alone covers around 23 percent of the province’s land. The government is expected to release its final regulatory changes by the end of 2024.

In an email, the press secretary for Alberta's Utilities Minister Nathan Neudorf, Ashley Stevenson, stated, “These new rules ensure responsible land use, protecting the environment, Albertans' property rights, Alberta's beautiful landscapes, and the best agricultural industry in the world.” Stevenson added, “Our government is focused on putting Albertans first, not industrial power projects.”

The move was heavily criticized by environmentalists who say the government’s decision has little to do with environmental concerns and more to do with the desire to continue bringing in oil and gas revenues. As part of the moratorium, Alberta’s government tasked the Alberta Utilities Commission (AUC) with conducting an inquiry on whether renewables posed significant threats to Alberta’s best agricultural lands. The inquiry found no scientific support for the government’s rationale and suggested that less than 1 percent of prime land would need to be used for green energy projects to support a net-zero outcome.

Green energy advocates believe that expanding Alberta’s renewable energy capacity would threaten the position of the oil and gas industry in the province, which has always been a driving force for revenues and energy security for several decades. While the environmental basis for restricting development may be legitimate, it seems rather ironic that the province is continuing to conduct widespread oil and gas extraction on these lands. Alberta is a major oil producer; in North America, only Texas produces more crude. Alberta not only continues to produce fossil fuels, but it is also responsible for the output of one of the most polluting forms of crude – tar sands. A study published in the journal Science earlier this year showed that Canadian tar sands pollution is likely up to 6,300 percent higher than reported.

Meanwhile, a 2023 survey from the environmental think tank the Pembina Institute showed that opinions of the oil and gas industry amongst Albertans are changing. The survey revealed that 70 percent of Albertans thought the province’s economy was too dependent on oil and gas. In addition, 82 percent of respondents thought the provincial government should take an active role in planning for future job opportunities for energy workers.

The restrictions on renewable energy developments have led to several project cancellations and could deter energy companies from pursuing future projects in Alberta. A study from the Pembina Institute showed that 53 projects were canceled in response to the moratorium, with a combined projected power production capacity of 8,600 MW. Of those, 33 projects, which could have powered almost all of Alberta’s homes, were already in the development queue when the moratorium was released. The 53 projects were expected to contribute $91 million in tax revenues.

The government restrictions on green energy were surprising for many given the clear benefits of the expansion of the sector. Between 2019 and 2023, approximately $3.75 billion was invested in utility-scale wind and solar projects in Alberta and 4,500 workers were hired. Despite the negative outlook, Alberta’s renewable energy capacity has grown significantly in recent years. According to the Canadian Renewable Energy Association, Alberta contributed around 75 percent of Canada’s new renewable electricity generation in 2022. Meanwhile, the energy consultancy Rystad Energy forecast that Alberta would be the country’s biggest wind and solar electricity producer by 2025.

It is still unclear just how expansive the restrictions will be on the development of new renewable energy projects in Alberta. However, there is significant evidence to suggest that the development of green energy projects in the province would have little detrimental impact on the environment. Further, it could help Alberta shift away from a reliance on one of the dirtiest forms of fossil fuels in favor of cleaner alternatives.


By Felicity Bradstock for Oilprice.com

Can Hydropower Survive Climate Change?

By Haley Zaremba - Oct 20, 2024, 

Hydropower, the largest source of clean energy, is facing an existential threat due to climate change-induced droughts.

Droughts in China, Brazil, the US, and Europe have significantly reduced hydropower generation, leading to a resurgence of coal in some regions.

Developing countries like Zambia are particularly vulnerable to hydropower shortages, hindering their ability to transition to renewable energy sources.




Hydropower is the largest source of clean energy in the world, generating more electricity than all other renewable energy resources combined. However, the global rate of hydropower expansion is falling, and the technology faces an existential threat in many parts of the world due to changing weather patterns associated with climate change. This could spell major trouble for global decarbonization efforts as net-zero scenarios rely on a strong continued role for hydropower with an ideal annual growth rate of around 4%.

“In the last five?years the average growth rate was less than one-third of what is required, signaling a need for significantly stronger efforts, especially to streamline permitting and ensure project sustainability,” the International Energy Agency (IEA) reports. “Hydropower plants should be recognised as a reliable backbone of the clean power systems of the future and supported accordingly.”

While hydropower remains an essential part of any net-zero scenario, historic droughts in many parts of the world have proven punishing for hydropower systems and have potentially scared off would-be investors. In 2022, major droughts in China’s Yangtze River basin reduced developed hydropower potential (DHP) by 26%, constituting a major energy security issue for the region and for China as a whole. Similar challenges have been faced in Brazil, the United States, and European countries in the Mediterranean region in recent years, among other locales scattered around the globe. Critically, these are not isolated incidents, nor are they characteristic of one particularly hot and dry period; the risk of similar extreme droughts in the future rises by nearly 90% in some climate scenarios, notably SSP585.

However, studies have shown that hydropower can remain a consistent and reliable source of energy during intense and prolonged periods of drought. During a period of drought in the United States, according to the Department of Energy, “the overall hydropower fleet sustained 80% of its average generation” and “hydropower could still be relied upon to supply flexible power during periods of high energy demand—even during the most severe droughts of the past two decades.” Moreover, hydropower could even play an integral role in drought management.

Nevertheless, during China’s severe bout of droughts in 2022, the country saw a significant return to coal, with widespread ramifications for the whole world’s decarbonization efforts. China is not alone in this pattern, either. Just this month the southern African country of Zambia approved the construction of a brand new coal burning power plant “as it battles a power crisis caused by a record drought, which has stricken its hydro-electricity generation,” according to a report by Bloomberg.

The new coal plant will be the country’s third, following quickly on the heels of Zambia’s second coal-powered plant, approved in July. Currently, Zambia relies on hydropower for 85% of its energy mix, which has rendered it extremely vulnerable to fluctuations in water supply due to extreme and changing weather patterns expected to intensify along with rising global temperatures.

Zambia’s forced embrace of the dirtiest fossil fuel is indicative of a much larger issue regarding the development of affordable and accessible renewable energy resources in developing countries. To keep with net-zero pathways, Africa and other developing nations will be required to “leapfrog” over the development of fossil fuels, essentially skipping what has been an essential step in the sequence of economic development for wealthier nations since the industrial revolution. But the case of Zambia clearly shows that such an approach is still not feasible for countries struggling to meet their country’s energy needs by any means, much less through purely renewable production capacity.

For countries that are already struggling to meet their energy security needs, any threat to capacity could result in major economic shocks. Even if hydropower is still able to produce at 80% capacity in severe drought conditions, that 20% could be make-or-break for strapped economies. This spells major trouble for hydropower and for global decarbonization plans as a whole, which need to see significant continued growth in Asia Pacific, Africa and the Middle East to balance out declining additions in other regions.

By Haley Zaremba for Oilprice.com

China's Belt and Road Initiative Expands into the South Caucasus

By Eurasianet - Oct 20, 2024, 12:00 PM CDT

China has signed trade agreements with Azerbaijan and Georgia to strengthen economic ties and expand trade along the Middle Corridor.

These agreements focus on infrastructure development, streamlined customs procedures, and improved logistics.

Middle Corridor trade has seen a significant increase in 2024, partly due to China's growing involvement in the region.



China is hoping to expand its strategic footprint in the South Caucasus, signing agreements with Azerbaijan and Georgia in recent months designed to expand East-West trade via the Middle Corridor. Those deals, however, appear at this point to be more aspirational than substantial, as they do not involve firm financial commitments.

The most recent deals concluded by Beijing were signed in September. The first was a memorandum of understanding with Georgia covering trade – an economic version of a more far-reaching strategic partnership agreement announcement last year. Among the MoU’s provisions were commitments to jointly develop infrastructure, streamline customs procedures, and improve security and digitization of logistics.

“The signing of the memorandum gives us the opportunity to establish closer trade and economic ties with China, to attract additional investments in the country, and also to increase the export of Georgian products to China,” Georgia’s Ministry of Economy and Sustainable Development said in a statement.

A few days later, on September 19, Azerbaijan’s state rail company announced that China was set to join a joint venture founded last year to enhance the efficient movement of cargo along the Middle Corridor route.

Azerbaijan appears to be a focal point of China’s interests in the Caucasus. The two countries have not only sought to expand trade and investment, but also have tightened political ties. Azerbaijan over the summer sought to increase its role in the Shanghai Cooperation Organization and applied to join the BRICS group of emerging economies, two entities in which China plays a major role.

In July, Azerbaijan and China agreed to elevate relations to a strategic partnership in political, cultural, and economic matters, an arrangement similar to the one announced with Georgia last year. The joint declaration specifically referenced plans to cooperate on the expansion of Middle Corridor trade, adding that the countries aim to “jointly ensure the safety and stability of production and supply chains.”

At the signing ceremony, Chinese leader Xi Jinping said the agreement would “advance the construction of the Trans-Caspian International Transport Route, and ensure the healthy and stable operation of China-Europe freight trains,” according to a statement issued by China’s State Council.

Middle Corridor trade traffic has surged so far in 2024. During the first three quarters of this year, the route handled 3.4 million tons of cargo, marking a 70 percent increase in volume over the same period in 2023, the Trend news agency reported, citing official figures compiled by Kazakhstan’s Transport Ministry.

By Eurasianet.org

Labour’s Leadership Has Sparked Massive Clean Energy Investments in the UK

By Felicity Bradstock - Oct 20, 2024

Private companies have committed over $31 billion to UK renewable energy projects, spurred by Labour’s green-focused policies.

The Labour government’s initiatives include offshore wind expansion, carbon capture, and energy storage, attracting billions more in green investments.

The shift in policy promises to boost job creation and advance the UK’s goal of a zero-carbon electricity system by 2030.


The recent change in leadership in the U.K. and the promise of an accelerated green transition appears to have caught the eyes of private investors, who are now promising to spend heavily on green energy projects. Renewable energy firms have committed over $31 billion in the U.K., and other private companies are investing in renewable energy, clean tech, and decarbonization projects across the country, supported by a favorable shift in national energy policy, as well as several other government initiatives.

Earlier this month, some of the world’s largest green energy companies pledged to invest almost $31.39 billion across the U.K., ahead of a meeting with the recently elected Labour Prime Minister Kier Starmer. The PM stated that the investment promise was “a huge vote of confidence” in the government’s “relentless focus to drive growth across the UK”, which would create thousands of jobs across the U.K. Starmer said, “Whether you’re in Scotland, Wales, Northern Ireland, or England – we are creating the conditions for businesses to thrive, and our international investment summit will be a springboard for every part of the U.K. to be an engine of innovation and investment.”

The Labour government has been under pressure to secure funding to support its election campaign pledge to develop a green economy. The party ambitiously committed to establishing a zero-carbon electricity system by 2030.

This Tuesday, the government held the International Investment Summit with the aim of solidifying the U.K.’s leadership across several key industries. At the summit, the government secured $82.43 billion in private investments, expected to support the creation of almost 38,000 new jobs nationwide. The industries receiving the greatest funding were life sciences, technology, energy, and transport.

At the summit, Spain’s Iberdrola and Norway’s Orsted announced investments totaling $31.39 billion and $10.45 billion respectively. Most of these funds will contribute to the expansion of offshore wind warms. More investments were announced in carbon capture and hydrogen. The transport sector also attracted investor interest, with Macquarie announcing plans to invest almost $1.7 billion in green infrastructure and Octopus Energy’s renewable energy projects, which include solar farms and energy storage systems. This will help the U.K. achieve its electric vehicle (EV) adoption targets.

Orsted’s decision to invest heavily in the U.K.’s energy transition reflects the shift in energy policy under the new Labour Party. Mads Nipper, Orsted’s CEO explained, “The reason we are investing in the UK is that alongside the targets for clean energy, we also see the commitment to creating the policy frameworks required to deliver those targets and a government who wants to work with businesses to enable the investments required.” Iberdrola’s Executive Chairman Ignacio Galán echoed this sentiment, stating, “After having invested more than £30 billion in the last 15 years, the clear policy direction, stable regulatory frameworks and overall attractiveness of the U.K. are leading us to double our investments for 2024 to 2028, reaching up to £24 billion.”

The Labour Party’s Manifesto states “The Conservatives’ ban on new onshore wind, failure to build new nuclear power stations, and decision to scrap investment in home insulation landed British families with amongst the highest energy bills in Europe.” Labour outlined plans to “use public investment to crowd in private funding,” as has been seen in the U.S. through the Biden administration’s climate policy the Inflation Reduction Act. It also pledged to roll out its Green Prosperity Plan to “make Britain a clean energy superpower”.

Since winning the election in July, the Labour Party has introduced several new policies and initiatives aimed at accelerating the country’s green transition. The government introduced a bill to create Great British Energy (GBE), a publicly owned green power firm that will develop and invest in renewable energy projects. Labour has also invested in carbon capture and storage projects in Merseyside and Teesside; carried out successful offshore wind auctions, resulting in 10 new projects; created National Energy System Operator (NESO), splitting it from National Grid; approved three large new solar farms and established a Solar Taskforce.

This month, the government launched a scheme to expand the U.K.’s energy storage infrastructure. This is expected to support the development of the first significant long-duration energy storage facilities in almost four decades and help boost energy security. The move is expected to improve investor confidence and unlock billions in funding for vital projects, as well as support job creation.


The U.K. Energy Minister, Michael Shank, stated, “With these projects storing the surplus clean, homegrown energy produced from renewable sources, we can boost our energy security by relying less on fossil fuels, protect household bills, and help deliver our key mission to make Britain a clean energy superpower.”

The dramatic shift in the U.K.’s energy policy under the recently elected Labour government has already helped attract high levels of private funding in the country’s energy transition. Several major companies have pledged billions in investment for a wide range of green energy, clean tech, and decarbonization projects in just the first three months of new leadership. As greater confidence is felt by investors and the government proves its ability to advance the green transition, we can expect to see billions more in investment.

By Felicity Bradstock for Oilprice.com

Scientists To Drill Volcano In Search Of Unlimited Super-Hot Energy

By Tsvetana Paraskova - Oct 20, 2024

In Iceland, where geothermal is a major source of power and heating, the researchers from the Krafla Magma Testbed (KMT) will be looking to revolutionize geothermal energy.

KMT, which aims to start drilling a well in 2026, will establish the world’s first magma observatory, which will study the magma and potentially develop concepts about the next-generation super-hot geothermal technologies.

Currently, geothermal systems use hot fluids underground. KMT wants to harness the power of the super-hot magma, which makes these fluids hot.


An international team of scientists is preparing to drill into an active volcano in Iceland in search of a better understanding of the properties of the molten rock, magma, deep underneath.

Apart from gaining better insights into the processes taking place under the surface of the Earth, the researchers plan, via a testbed under the Krafla volcano, to look into the potential of super-hot geothermal energy.

The extremely hot temperatures in magma could be a source of limitless 24/7 clean energy, according to the Krafla Magma Testbed (KMT) initiative. This is an international effort to improve volcano monitoring, potentially predict eruptions, and test ideas about tapping into the magma geothermal energy.

As countries look to boost their low-carbon energy sources to reduce emissions and reach net zero, geothermal energy is set to see accelerated growth, according to estimates by research firm Rystad Energy. Currently, the global installed geothermal power generation capacity stands at 16.8 gigawatts electric (GWe). This capacity is expected to increase to 28 GWe by 2030 and 110 GWe by 2050, driven by greenfield projects, brownfield developments, and resource optimization at existing assets, Rystad said in a report this year.

In Iceland, where geothermal is a major source of power and heating, the researchers from the Krafla Magma Testbed (KMT) will be looking to revolutionize geothermal energy.

“It’s like our moonshot. It’s going to transform a lot of things,” Yan Lavallée, a professor of volcanology at the Ludwig-Maximilian University in Munich, who heads KMT’s science committee, told BBC News reporter Adrienne Murray.

KMT, which aims to start drilling a well in 2026, will establish the world’s first magma observatory, which will study the magma and potentially develop concepts about the next-generation super-hot geothermal technologies.

Magma holds five to ten times more energy than conventional geothermal energy, even in Iceland, where the subsurface hosts hot fluids, according to the Ludwig-Maximilian University.

“Learning to access this resource safely will drastically improve the energy landscape in volcanically active countries and worldwide,” said the university, which earlier this year hosted the first official conference of the Krafla Magma Testbed.


Currently, geothermal systems use hot fluids underground. KMT wants to harness the power of the super-hot magma, which makes these fluids hot.

“Magma are extremely energetic. They are the heat source that power the hydrothermal systems that leads to geothermal energy. Why not go to the source?” Lavellee told the BBC.

Just last month, the project secured financing for the next two years after signing an agreement with the Icelandic Ministry of the Environment, Energy, and Climate, Iceland’s national power company Landsvirkjun, and Reykjavik Energy. The agreement marked a new phase for KMT as Reykjavik Energy joined the project.

“Building on the Iceland Deep Drilling Project (IDDP-1), where magma was encountered at a depth of 2.1 km, KMT is dedicated to harnessing the potential of near-magma energy,” the initiative said.

But drilling more than a mile deep into the volcano will not be an easy task, not only in terms of financing. The super-hot temperatures of 500 degrees Celsius, or over 900 F, and the gases deep underground could melt and corrode conventional drilling equipment.


At the University of Iceland, Sigrun Nanna Karlsdottir, a professor of industrial and mechanical engineering, and her team are currently testing materials that would be able to withstand the super-hot magma temperatures.

The team is focusing its efforts on high-grade nickel and titanium alloys, Karlsdottir told the BBC.

Drilling into a volcano will not be an easy task, and it will take years to potentially perfect a way of tapping volcano geothermal power. But if KMT succeeds with major breakthroughs, geothermal energy could enter a new era of providing unlimited round-the-clock renewable energy.

By Tsvetana Paraskova for Oilprice.com

Mozambique police shoot two as Gemfields ruby mine is stormed

Bloomberg News | October 20, 2024 |

Montepuez is an open-pit mine, considered the world’s most lucrative ruby operation. (Image courtesy of Gemfields Group)

About 300 people invaded a pit at the Montepuez ruby mine owned by Gemfields Group Ltd. in northeastern Mozambique on Sunday, chief executive officer Sean Gilbertson said. Two people were shot by police, he said.


A crowd estimated at 500 gathered at a local village later in the evening intending to enter the mine, Gilbertson said by text message. A disinformation campaign circulated earlier that the company “opened its mine for mining by anyone” for 24 hours, he said.

“This campaign is fake” and was promoted by ruby smuggling syndicates, the company said in a statement. “Two people suffered firearm injuries when police responded to escalating aggression.”

The operation supplies about half the world’s rubies, according to the company’s website.

Political tensions have been high in Mozambique since the Oct. 9 general election. Multiple observer organizations have raised questions over the credibility of the nation’s election process.

Opposition leader Venâncio Mondlane, 50, called for street protests on Monday after his legal adviser, Elvino Dias, was gunned down by unknown gunmen.

(By Matthew Hill)

Australia’s MinRes investigating founder over tax questions

Bloomberg News | October 20, 2024 |

Mineral Resources CEO Chris Ellison. Submitted image.

Mineral Resources Ltd. has hired legal counsel to investigate payments made to its founder and managing director Chris Ellison, who failed to declare some revenue to the Australian Taxation Office.


Shares in the Australian miner, which produces iron ore, lithium and natural gas, tumbled as much as 14% on Monday.

Ellison, who has a large stake in the miner, said in an emailed statement that the company set up offshore entities more than 20 years ago that supplied Mineral Resources with mining equipment. However, he did not declare the revenue derived from these equipment supply contracts.

“Regrettably, revenue generated by the overseas entities that we were beneficiaries of was not disclosed to the Australian Taxation Office at that time,” Ellison said. “This was a poor decision and a serious lapse of judgment.”

Mineral Resources said in a corporate filing that it had launched an investigation.

“Mr Ellison self-reported to the Australian Taxation Office, repaid amounts owed and disclosed these matters to the board,” it said. “While this does not diminish what happened, Mr Ellison profoundly regrets his errors of judgment.”

A report in the Australian Financial Review over the weekend said Ellison had cut a deal with the tax office and agreed to pay the outstanding amount. In exchange, the ATO would not reveal the underpayment or investigation to the Australian Federal Police or the Australian Securities and Investments Commission.

“The board has full confidence in Mr Ellison and his leadership of the Mineral Resources executive team,” the company said Monday, adding it will issue a further statement once its inquiries are completed.

Perth-based Mineral Resources has a market value of about A$7.9 billion ($5.3 billion). Earlier this year, Ellison made headlines after stating he wanted to prevent employees at the company’s office from leaving the building to buy coffee.

(By Paul-Alain Hunt)

 

Choosing the Right Flag

There’s something for everyone in the flag state business.

iStock

Published Oct 20, 2024 3:00 PM by Pat Zeitler

 

(Article originally published in July/Aug 2024 edition.)

 

The global supply chain is dependent on an efficient maritime transportation system, and flag states are the catalyst for ensuring the integrity of this system.

Their role is complex and multi-layered. Registries simultaneously serve as regulatory enforcers and shipowner advocates while also competing against each other to attract business. In a world where shipowners face all kinds of challenges – ambitious IMO regulations demanding zero emissions by 2050, armed conflicts disrupting shipping routes and a labor shortage affecting every skilled position at sea – the best way to avoid headaches is to choose the right flag for their vessel.

One-Stop Consultancy

Global Maritime Consultants Group (GMCG) can help. It’s a one-stop consultancy with a deep appreciation of the variety of roles flag states perform in the global supply chain.  

For over 35 years, shipowners have relied on GMCG for services such as marine surveys, counsel in matters of maritime law, engineering support and seafarer training. GMCG helps owners liaise with registries and port states and understands the relationship between owners, registries and the IMO.

“Beyond enforcement, a registry plays a crucial role in supporting the day-to-day operations of vessels,” says Ranim Obeid, GMCG’s Head of Legal Services. “Effective registries provide the necessary framework for compliance and operational efficiency.”

The company operates out of 19 global locations providing 24/7 customer support and has built a reputation for excellence. It works with every major registry and knows shipowners will seek registries that meet their own unique requirements. Registries that can provide technical assistance for retrofitting older vessels, offer financial incentives for compliance and support the adoption of alternative fuels are highly desirable as are those that host international forums and provide up-to-date guidance on evolving regulations.

There’s something for everyone, and GMCG can help you find it.

Estonian Transport Administration

One of the biggest challenges facing flag states and owners alike is how to retrofit currently active, seaworthy and capable older vessels to be compliant with future green IMO initiatives. In this regard, the Estonian Transport Administration (ETA) is taking a proactive approach by creating a retrofit hub in Estonia with state-assisted financing when utilizing top-tier contractors. 

Helena Rattus, head of ETA’s Maritime Development & Competitiveness Department, says, “We told shipowners ‘We’re listening, and we’d like to improve our service.’ Shipowners told us it’s all about service. They need 24/7 service, fast responses, constant cooperation and support. They want a partnership between the ship and the flag state.” 

Estonia is taking what they hear from shipowners seriously. Its policy of “Bringing ships under Estonian Flag” promotes Estonia as a maritime country, and the best method for accomplishing this is to offer favorable conditions for owners. 

These conditions include four key features. The first is a simple and transparent tax system along with state aid benefits. The second is digital solutions such as an automated system with 99 percent of government services available online 24/7. The third is a competitive and developing business environment that is welcoming to start-ups and offers opportunities for discussion with the Estonian Business & Innovation Agency for financial support.

The fourth key feature is the variety of high-quality shore services. Estonia has a long and proud maritime history and offers extensive ship repair and shipbuilding facilities. Owners who qualify sail under a flag that promotes green shipping, is highly digitalized, business-friendly and distinguished for its commitment to international standards. It’s a flag of quality, not convenience.

Cayman Islands

The Cayman Islands Shipping Registry (CISR) is a key supporter of the global maritime economy. Evolving from the Cayman Islands’ rich historic seafaring and shipbuilding industries, CISR recently celebrated its 120th anniversary.

It views the role of the flag state as being the primary interface between the IMO and owner/operators and being ultimately responsible to ensure that vessel operations are conducted as safely and efficiently as possible.

Coming into full force in March 2024, the Merchant Shipping Act updated previous legislation, enabling the CISR fleet to stay current, if not ahead of international regulatory conventions. CISR supports its clients at the operational level by posting up-to-date guidance and coordinating appropriate responses, something all vessel operators can appreciate considering the recent conflicts and geopolitical turmoil that have negatively impacted maritime trade in the past two years. 

Owners who register with CISR benefit from a flag state that is on the White List of the Paris and Tokyo MOUs and is a member of the U.S. Coast Guard’s Qualship 21 program. Additionally, CISR is part of the Red Ensign Group and with a Category 1 status can register ships of unlimited tonnage.

Yacht owners find it very appealing to be a part of the Red Ensign Group, and why wouldn’t they? Having their yacht registered under the protection of the British Royal Navy makes the sailing just a little bit smoother.

Panama Maritime Authority

With over 700,000 seafarers, a fleet of over 8,600 vessels and arguably the most geographically advantageous location in the Western Hemisphere, the Panama Maritime Authority (PMA) is the industry’s largest registry. 

Established in 1917, it joined the IMO in 1958 and has been a Category A (top 10 states with largest interest in international shipping) member since 2002. PMA sees two major challenges for shipowners. The first is decarbonization and the second is vessel performance.

For both issues, PMA is full ahead to advocate and support its clients as an active participant in all discussions with the IMO while aligning itself with IMO’s 2050 agenda. It balances the role of vessel owner advocate with enforcing international regulations in a consistent and accurate manner to optimize the performance of each flagged vessel.

The registry boasts a network of 53 Merchant Marine Private Consulates and 14 Segumar International Technical Offices located across the globe.

Maritime Cook Islands

Shipowners looking to register under an open flag should consider Maritime Cook Islands (MCI).

Established in 2001, it’s arguably the fastest growing open registry with a fleet that numbers over 900 vessels. Knowing that owners have choices with respect to selecting the optimal registry, MCI continues to expand its market share by prioritizing customer service and improving its Port State Control performance to achieve White List status on the Paris and Tokyo MOUs.

MCI’s many advantages include electronic certification and forms, in-house technical experts, global 24/7 support, IMO representation and IMO STCW White List status. Registering under MCI offers owners an efficient and relatively quick process for incorporating an offshore company based on vessel ownership, a shrewd move that results in tax exemption benefits. 

MCI has no restrictions on the nationality of seafarers employed on its flagged vessels, another huge advantage for vessel owners struggling to crew their ships.  

Palau International Ship Registry

Established in 2010, the Palau International Ship Registry (PISR) is headquartered in Piraeus, enhancing its ability to make strategic decisions independently and resulting in a highly responsive management structure –  something of great value to shipowners requiring immediate support. 

PISR knows the maritime industry is at a critical crossroads and believes the two biggest concerns for vessel owners are the attacks on shipping in the Red Sea and increasingly stringent environmental regulations. With respect to the Red Sea, PISR keeps open communications and advises clients based on guidance from IMO, BIMCO, Combined Maritime Forces and the “Guidance for Shipping Navigating the Southern Red Sea.” Regarding the environment, it supports IMO initiatives and advocates for a more comprehensive and adaptable system.

PISR’s fleet includes a variety of vessel types including bulk carriers, tankers, ro-ros, yachts, tugs and barges. The flag prides itself on customer service. From providing a globally top-tier digital ship registry to transparent fees, for PISR the real difference lies not only in its services but in how they deliver them.

Something for Everyone

While shipowners have many challenges, they also have many options when deciding on a flag state. 

“As environmental regulations tighten, the importance of robust ship registration services becomes paramount,” states Jaun Maltez, Regional Director of the Americas for Global Maritime Consultants Group. “At GMCG, our expertise ensures that our clients' vessels are not only compliant with international standards but also operate efficiently and sustainably. We are dedicated to guiding shipowners through the complexities of registration and compliance with confidence and ease." – MarEx

Frequent contributor Pat Zeitler is Director of Business Development & Program Advancement at The Ocean Corporation in Houston.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

IMO Honors Lahaina Responders With Bravery at Sea Award

The fire at Lahaina, as seen from a Coast Guard response boat on August 8 (USCG)

Published Oct 20, 2024 4:55 PM by The Maritime Executive

 

On Friday, the IMO honored Coast Guard members and good Samaritans who responded to the Lahaina wildfire last year. Their actions saved or assisted dozens of local residents who were attempting to flee the devastating blaze that swept through the city.

On August 8, 2023, a major wildfire started on the outskirts of Lahaina, Maui. Propelled by winds from a strong high-pressure weather system and fueled by tall grasses, the blaze swept into the city that evening, destroying over 2,200 buildings and killing more than 100 people in a matter of hours. Survivors said that the  evacuation was self-organized, with little guidance or warning from city officials, and traffic hampered the movement of those who attempted to flee by car. Dozens escaped a firestorm on the waterfront by jumping into the harbor. The severity of the situation and the effectiveness of the response were exceptional: Coast Guard responders and good Samaritans rescued 20 people along the shoreline and assisted about 40 more over the course of August 8-9.

In a ceremony at the J. Walter Cameron Center in Wailuku, Hawaii, the International Maritime Organization presented five Coastguardsmen and four good Samaritans with its Honours for Exceptional Bravery At Sea award for their role in the response. The award recognizes those who risk their own lives to save others or prevent damage to the marine environment. The highest-level award is granted to nominees who perform the "most outstanding act of bravery in a situation of grave danger to themselves or others and under very difficult conditions." 

Typically the awards are announced and presented at IMO headquarters on a major occasion, but in exceptional circumstances, the ceremony may be held elsewhere - in this case, Hawaii. 

“Attempting to rescue those in peril is among the noblest of human undertakings,” said Arsenio Dominguez, secretary general of the International Maritime Organization. “The courage and professionalism displayed . . . are truly noteworthy.” 

At the same event, the United Services Organization honored Petty Officer 2nd Class Joshua Marzilli, a boatswain’s mate from Coast Guard Station Maui, as its 2024 USO Coastguardsman of the Year. 

Boatswain Mate 2nd Class Joshua Marzilli was the coxswain in charge on scene, and he and his crew arrived at Lahaina to respond to reports of up to 100 people who had jumped into the water to escape the fires. The surface conditions were hazardous for swimmers, including 25-knot winds, three-foot seas and less than 10 feet of visibility near the shoreline from the heavy smoke. 

Working from outside the reef line in the dark, Joshua and his crew used a loudhailer, searchlights and a visual search to look for survivors. They spotted lights on shore and determined that there might be people stuck on the beach. 

Marzilli volunteered to jump in and swim to shore on a tether line. The first attempt was not successful, and his crew hauled him back to the response boat. Instead, he worked with a good Samaritan boat nearby, which donated two surfboards and an inflatable dinghy to help them get over the reef. An off-duty lifeguard from the good Samaritan vessel joined Marzilli, and they paddled together on the surfboards, carrying lifejackets. They retrieved two children from the shore and paddled back out through the surf to bring them to safety. Marzilli continued to help on shore and afloat through the night, rescuing three people on the beach with the Maui Fire Department and two more independently with his response boat crew. 

Coast Guard Sector Honolulu also presented 26 local skippers and crew members from the Trilogy II, Expeditions, Majorie Ann, Reef Explorer, and Ali’i Nui with letters of appreciation, and it awarded Coast Guard Lt. Dylan McCall with a Coast Guard Commendation Medal.

“Their selfless actions exemplify true heroism, and we are deeply grateful for their bravery and dedication. Together, they transformed a moment of despair into a testament of hope and humanity for the community of Maui," said Coast Guard Capt. Aja Kirksey, commander, Sector Honolulu. 

 THE CONVERSATION 

Heavy Industries Need Carbon Capture - But It Has to be Done Right

CCS is an essential part of the transition for heavy industries, including shipping, but the details matter

An onboard carbon capture system prototype (DSME)

Published Oct 20, 2024 5:37 PM by Myles Allen

 

 

The UK government has given the go-ahead to carbon dioxide capture and storage (CCS) schemes worth £22 billion (US$28.6 billion). Critics are insisting that this technology – which involves capturing carbon as it is emitted or taking it back out of the atmosphere, then pumping it into rocks deep underground – is unsafe, unproven and unaffordable. Defenders are responding with painstaking rebuttals.

Could the whole debate be missing the point? I think it is better to focus on the big picture – why we need CCS to work – rather than playing whack-a-mole with every objection to individual projects.

The case for CCS boils down to waste disposal: we are going to make too much carbon dioxide (CO?), so we need to start getting rid of it.

By burning fossil fuels and producing cement alone, we will generate more CO? than we can afford to dump into the atmosphere to have any chance of limiting global warming to close to 1.5°C – even after accounting for the capacity of the biosphere and oceans to mop it up.

So, we need to start disposing of that CO?, safely and permanently, on a scale of billions of tonnes a year by mid-century. And the only proven way of doing this right now is to re-inject it back underground, through CCS.

Keep our options open

The world is not giving up fossil fuels any time soon, and the transition is going to be difficult enough without tying our hands by ruling out CCS.

The questions we should be asking are: will enough “green hydrogen” – produced from water using renewable electricity – be available to power all the industries that will need it, given all the other new demands on the electricity grid? Will we still need gas as a back-up to deal with the vagaries of the weather in a renewable-dominated grid? Can we get by entirely on recycled steel, and eliminate the use of conventional cement in construction (steel and cement are notoriously hard to produce without generating CO?)?

If the answer to any of these questions, anywhere in the world, turns out to be “no” – or even “not by 2050” – then we need CCS.

Would taking CCS off the table focus minds and make us abandon fossil fuels faster? It could equally make us abandon climate targets – ultimately, the most expensive option of all.

Nature is maxed out

What about offsetting continued fossil fuel use with nature-based solutions, such as restoring ecosystems and rewilding? Unfortunately, we are already planning on maxing out nature’s credit card.

In the Intergovernmental Panel on Climate Change’s (IPCC) scenarios in which warming is kept close to 1.5°C, we eliminate deforestation almost immediately, and restore a cumulative total of some 250 billion tonnes of CO? to the biosphere by 2100 – by restoring forests and wetlands, for example.

Over the same period, we dispose of four times that amount of CO? back underground through various forms of CCS – as well as slashing fossil fuel use by 75%-80%.

We cannot bank on stuffing an additional trillion tonnes of CO? into the biosphere over the next 75 years – especially as carbon stored at the Earth’s surface is increasingly at risk of being re-released to the atmosphere as the world warms, forests burn, and peatlands dry out.

Invest, but invest wisely

The fact that we need CCS is no excuse for doing it badly. It makes little sense, for example, to manufacture “blue hydrogen” – produced from natural gas with CCS to limit emissions – from high-emission LNG. UK rules would prohibit this, and there are cleaner gas supplies available, but rules need to be enforced. Above all, we need to make sure the availability of CCS does not encourage yet more CO? production.

This is where critics of government policy may have a point. If CCS is widely available and heavily subsidized, could that just encourage individuals and companies to use more fossil fuels? The danger is real, but it doesn’t mean we should abandon CCS. We need to be smart about how it is implemented.

An injection of government money is, by now, essential to kickstart our CO? disposal industry. But this should not become an endless subsidy which allows private industry to keep profiting from selling the stuff that causes global warming, while taxpayers pay for the clean-up.

Fortunately, there is another way. The EU has shown, in its Net Zero Industry Act, how regulation can force the fossil fuel industry to contribute to the cost of CCS without relying on US-style subsidies.

The UK government could go further, making it clear that, by mid-century, anyone selling fossil fuels in the UK will be responsible for geological disposal of all CO? generated by their activities and the products they sell.

Pricing in permanent CO? disposal would make fossil fuels more expensive, potentially adding 5p per kWh to the cost of natural gas over the next 25 years. That’s cheap compared with the cost of just dumping that CO? into the atmosphere, and would encourage everyone to use fossil fuels more sparingly, which is precisely what needs to happen.

Building a global industry to dispose, safely and permanently, of every tonne of CO? still generated by any remaining fossil fuel use by 2050 will be hard. But if we want to meet our climate goals, we just have to get on with it.

Fortunately, the UK has the right geology, skills and expertise, as well as a history of innovation in climate policy. It also has a clear interest in getting involved in what should become one of the major industries of the second half of this century. And it has a moral obligation, having pioneered taking fossil carbon out of the Earth’s crust, to join the first wave of countries putting it back.

Myles Allen is Professor of Geosystem Science in the Environmental Change Institute, School of Geography and the Environment and Department of Physics, University of Oxford. His research focuses on how human and natural influences on climate contribute to observed climate change and risks of extreme weather and in quantifying their implications for long-range climate forecasts.

This article appears courtesy of The Conversation 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.