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)
Thursday, August 01, 2024
Echandia Joins the Growing Green-Propulsion Industry in Washington State
Washington Gov. Jay Inslee (second from left) joins the ribbon-cutting for the new Echandia factory, July 31 (Echandia)
In a sign of the favorable investment climate in the U.S. shipbuilding supply chain, Swedish battery maker Echandia has decided to set up a manufacturing plant in Washington State, just 50 miles from Norwegian-owned competitor Corvus.
"The US market holds immense strategic importance for us, and this represents a pivotal step in our rapid expansion," said Fredrik Hellström, CEO of Echandia Marine AB, in an announcement Thursday. "We look forward to being part of the thriving Washington business community for many years to come."
Echandia predicts that the U.S. maritime electrification market will grow in the years ahead, and Washington is a promising location. The Washington State Ferry system - the largest in the United States - has a legislative mandate to transition its 21-vessel fleet to battery-hybrid operation by 2040, at an estimated cost of $4 billion. The invitation to bid for the first five hybrid vessels was released in May.
"Washington is leading the world’s high-tech revolution, putting people to work on solutions that will change the world for the better," said Washington Gov. Jay Inslee in an accompanying statement. "Echandia will continue that right here in Marysville, putting brilliant Washingtonians to work and accelerating the decarbonization of maritime transport."
Echandia is the second maritime-battery firm to start production in Washington. In 2022, Norwegian-owned battery system builder Corvus Energy announced the construction of a new factory at the Port of Bellingham, Washington, north of Marysville on the I-5 corridor. The new manufacturing plant officially opened in January 2023, and it has an annual output of 200 MWh of battery storage system capacity. Corvus has existing battery factories in Norway and British Columbia, but it wanted to expand production to meet growing U.S. demand.
Echandia and Corvus are part of a growing trend of foreign direct investment in the U.S. shipbuilding industrial base, all by firms from allied nations. In addition to longstanding foreign investors like Fincantieri, newcomers from South Korea and Canada are looking to enter the market. In April, Hanwha Ocean attempted to purchase Austal USA by bidding for parent firm Austal Ltd. The bid was turned down, but Hanwha successfully acquired Jones Act shipbuilder Philly Shipyard in June. In addition, Canada's Davie Shipbuilding recently committed to investing in a U.S. yard for icebreaker production, pending identification of the right partner.
WSC Presents Fund Plan to Support Green Fuels Ahead of IMO’s MEPC Session
WSC proposes a fund to support demand and drive production of green fuels (file photo)
The World Shipping Council, which represents the container and vehicle transport sectors, has refined its proposals to the International Maritime Organization for a financial mechanism that it believes will create price equality and drive the adoption of green fuels. The group joins others that are lining up with their competing proposals ahead of the next MEPC session, 82 which is scheduled to run from September 30 to October 4.
Experts expect a contentious session as the IMO looks to review the draft framework for decarbonization efforts and supporting research. The last session in March set the groundwork for the agenda which promises to confront key issues on the path to decarbonization as well as other key issues including new Emission Control Areas.
Industry groups and members are also targeting key elements of the decarbonization effort. For example, calls are increasing for revisions to address the shortcomings in the Carbon Intensity Index (CII).
"IMO member states have a unique opportunity to decarbonize the world’s ocean supply chains. We do not have time for half measures,” said Joe Kramek, the recently appointed President & CEO of the WSC. “The IMO's regulations must make it possible for green fuels to compete with fossil fuels, to drive the transition effectively. Anything less risks raising transportation costs without achieving the climate progress the world needs."
The WSC like many others highlights the concern that green fuels are far more expensive than traditional fossil fuels. They are also concerned about supply and production capacity. The working premise in much of the industry is that if the price of green fuels is addressed ensuring demand from operators will drive investments in production. The WSC points out that 60 percent of the newbuilds on order for the container and vehicle sector are designed to use green fuels further evidence that demand will emerge for these alternatives.
"For shipping’s energy transition to take place, green maritime fuels must be available at scale, requiring billion-dollar investments by energy producers. For these investments to occur, the IMO must adopt regulations that not only increase fossil fuel prices but also make green fuels a viable alternative,” asserts Kramek.
The WSC’s proposal to stimulate the necessary levels of investment in green fuel production calls for the creation of a fund which they call the Green Balance Mechanism. A regulatory measure, it would place a price on fossil fuel use. To bridge the gap between higher-priced green fuels and traditional fossil products, the WSC allocates funds from the older fuels to lower GHG-intensity fuels.
The proposed fee applies to fossil fuels and is calculated on an annual basis. It would be adjusted based on the amount of green fuel use and market prices as well as progress on reaching the initial goal of a 65 percent reduction in industry carbon emissions. Further, they propose to reward those offerings that create the greatest well-to-wake reductions with higher financial allocations.
The World Shipping Council has submitted updated designs for its proposals based on a positive response and input from IMO member states and other stakeholders. They provided a draft of the regulatory text and are working to build support for their proposed approach.
The Green Balance Mechanism proposal also includes a framework to create a parallel IMO Net-Zero Fund. The purpose would be to raise funds for research, development, and demonstration projects and climate mitigation initiatives.
Similar ideas for funds have been presented to the IMO during the past sessions. Observers believe it is likely that MEPC will adopt some form of the fund concept as a critical tool to support the development of green fuels. The industry widely accepts that steps will be required to level the divide between traditional and alternative fuels, although many of the proposals also call for greater government involvement to drive the transition.
OTG Recognizes Methanol’s Rising Popularity as Alternative Fuel of Choice
(Left to right): Knut H. Mikalsen & Johan Gustafsson
Ocean Technologies Group (OTG), the global leader in maritime Human Capital Management and operational technologies, has launched a pioneering new e-learning title: Methanol Fuel Safety.
As the world looks to reduce its dependency on fossil fuels in favour of cleaner energy, methanol has emerged as an increasingly popular option due to its low emissions, production versatility and cost-effectiveness when compared to other alternative fuels. Recent data indicates methanol has overtaken liquified natural gas (LNG) as the preferred alternative fuel for new ships in 2023.
According to the Methanol Institute, there are currently 251 methanol newbuild vessels on the water or in the order book. Well-established technologies also allow for easy conversion of existing marine internal combustion engines to run on methanol. Most methanol orders are for containerships, with a few for bulk and car carriers. Although LNG remains popular, particularly for new builds in container and car carrier segments, the total number of LNG orders fell from 222 in 2022 to 130 in 2023. These figures reflect the industry's broader move towards exploring various alternative fuels to achieve a greener future.
Recognising the importance of this trend and in response to customer desire to start preparing their seafarers for new fuels, OTG has developed a new e-learning title on Methanol Fuel Safety. The course curriculum aligns with ongoing work in industry groups to establish training standards for working safely with new fuels. This comprehensive programme provides seafarers with essential knowledge on safe handling and storage of methanol fuel and provides guidance on managing leaks and fires.
The title considers all applicable industry regulations and guidelines available such as “The International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code)” and the IMO’s interim guidelines for “The Safety of Ships Using Methyl/Ethyl Alcohol as Fuel.”
“It is really important for our customers to ensure that their seafarers stay ahead of the curve and have the knowledge, skills and defined competencies to handle new fuels safely before they are required to work with them,” said Knut Mikalsen, Director of Learning Solutions for OTG.
“At OTG, we’re committed to engaging with customers and key industry stakeholders to develop reliable training standards that can help mitigate potential risks and enable seafarers to work safely with these new fuels while maintaining the highest standards of operational excellence.
With a rapidly evolving space such as decarbonisation, e-learning offers a key advantage in that titles can be swiftly updated to ensure the latest information and best practices are always available wherever and whenever there is a need,” added Johan Gustafsson, Chief Revenue Officer at OTG.
The products and services herein described in this press release are not endorsed by The Maritime Executive.
ClassNK Issues World's First AiP for Bunkering Boom for Ammonia Fuel
ClassNK has issued an Approval in Principle (AiP) for a design concept of the ammonia fuel bunkering boom, which is jointly developed by Nippon Yusen Kabushiki Kaisha (NYK Line) and TB Global Technologies Ltd. This is the world’s first AiP certification for the design of a bunkering boom for ammonia fuel.
As ammonia fuel utilization is expected in shipping for decarbonization, bunkering vessels that supply fuel to ships and related equipment will play an essential role in the supply chain. On the other hand, due to the novelty, it can be difficult to confirm the safety of some equipment by applying existing rules.
Targeting such new technologies, ClassNK has issued the ‘Guidelines for Technology Qualification’ that define a certification process to demonstrate that an acceptable level of safety, equivalent to that of technologies designed under existing rules and standards, has been verified. Through the guidelines, ClassNK is providing a risk-based approach to safety assessment for the implementation of new technology.
ClassNK carried out a drawing review of a basic design of the bunkering boom based on part N of its ‘Rules and Guidance for the Survey and Construction of Steel Ships’ for ships carrying liquefied gases in bulk, and conducted a review of documents required by the ‘Guidelines for Technology Qualification’. Upon confirming they comply with the prescribed requirements, ClassNK issued the AiP.
ClassNK will continually strive to contribute to advanced decarbonization initiatives through safety assessments and more.
The products and services herein described in this press release are not endorsed by The Maritime Executive.
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