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 31, 2023
Corsica Ferry Experiences a Birth and a Death in One Crossing
A rescue swimmer helps steady a litter carrying a pregnant woman for a medevac from the ferry Mega Andrea (SIS 2b)
On Monday, local firefighters on Corsica were called out twice in one night to meet the same ferry - first for a birth, then for a death.
At about 2200 hours, firefighters were called to evacuate a woman who was about to give birth aboard the Corsica Ferries vessel Mega Andrea. The expecting mother was seven months pregnant, and the baby would be premature and in need of extra care. The weather was too rough for the ferry to enter port, and it was operating in a holding pattern off the harbor entrance.
Corsica's fire service dispatched a helicopter with a doctor and two rescue swimmers on board, and they made preparations to hoist the woman aboard. Despite severe weather, the medevac was successful.
Ideally, the service would have liked to deliver the patient directly to the Bastia hospital, but the weather was so bad that this was not possible. Instead, she was brought to the Poretta airport, where EMS personnel met the helicopter to conduct a transfer. The mother was transported to the hospital, and the baby was successfully delivered - though it was still in need of medical attention. On Tuesday, the rescue service dispatched another helicopter to the hospital to fly the infant to Nice for advanced care.
This evolution ended well, but the night was not over for the passengers and crew of the Mega Andrea. At 0100, three hours after the medevac, the ferry was unloading at Bastia. A car that had just driven off the ship went off the pier and into the water in front of the ferry terminal. Security guards from the seaport jumped into the water in an effort to save the car's passengers, and they pulled three from the vehicle alive. The survivors had swallowed saltwater but were otherwise unharmed.
A fourth individual, an older man, did not escape and went down with the car in 30 feet of water. Firefighters arrived on scene shortly after, and they attempted to rescue the last occupant of the vehicle. Divers reached the car and retrieved the man's body at about 0210 hours.
An investigation into the cause of the car accident is under way. In the meantime, the port has called in a psychological support unit to care for employees who may have been affected by the casualty.
Uncertainty Over HMM Sale After Banks Only Receive Four Bids
First round of bidding for the government's stake in HMM ended on Monday (file photo)
Uncertainty emerged in South Korea over the fate of HMM and the next steps the state-run banks might take after the first round of bidding only received three domestic proposals plus an offer from Germany’s Hapag-Lloyd. The stock market in South Korea responded on Tuesday by driving the price of the shipping line’s shares down by more than four percent as speculation mounted on the news that Korea’s largest corporations were not participating in the process.
Korea Development Bank and Korean Ocean Business Corporation were believed to favor one of Korea’s large conglomerates as the buyer for HMM. Leading up to the bidding process, the banks had said they would be looking for a company with sufficient capital and management ability that could help continue the growth of HMM and contribute to the country’s role in the industry. Despite the downturn in the shipping market, the banks said their financial advisory committee had said it would be possible to proceed with the sale to privatize HMM.
Reports in the Korean media are that the largest corporations such as Hyundai and POSCO did not participate in the first round which closed on Monday. In addition, SM Line which had announced it would be a bidder did not submit an offer after reviewing the prospectus. The company had said in prior interviews despite already purchasing shares of HMM on the market it would only bid up to approximately $3 billion. Consumer goods exporter, Global Sae-A, also declined to submit a proposal after registering for the bidding.
The three bids from domestic companies came from Harim, a domestic food company that is a large investor in Pan Ocean, South Korea’s largest dry bulk shipping company. Dongwon, another food producer that also has investments in logistics and port operations with the Dongwon Pusan Container Terminal submitted a proposal as did LX, a trading company involved in semiconductors, building materials, and logistics.
One of the issues is the size of the transaction. The banks hold both shares and convertible bonds and warrants. Depending on the final agreement, the conversion could drive the value of the HMM sale to between $3.9 and $4.85 billion. KDB had indicated it would convert most of the bonds but still hold a smaller position, with reports in the media saying the bank was also rumored to be seeking to limit HMM’s ability to issue dividends after the sale.
Harim Group reportedly formed a partnership with private equity investors JKL Partners, but according to the media reports none of the companies have sufficient funds to complete the proposed transaction. All the companies are smaller than the $18 billion market valuation of HMM, raising speculation that they would have to heavily leverage the transaction with debt or acquisition financing. Some speculation has been that they might seek to do it as a leveraged buyout using HMM’s cash. This could present challenges to HMM which is proceeding with its growth strategy including orders for new containerships and a new class of heavy lift vessels as well as acquiring a secondhand tanker.
The Korean banks are thought not to favor selling HMM internationally although Hapag entered a bid and has the financial strength to proceed with the transaction. Some speculation is that one of the Korean bidders might partner with Hapag as an investor for the acquisition.
The process called for the qualified bidders to undertake a due diligence and submit final proposals. A preferred bidder was to be selected for final negotiations. KDB and KOBC however had said if no qualified bidder emerged, they could amend or cancel the sale. Speculation is that the banks might suspend the process after the first round citing the market conditions in the shipping industry.
"Multiple" Offshore Oil Workers Medevaced Due to Severe Heat Wave
A severe heat wave across the U.S. Gulf Coast has created a new hazard for offshore oil and gas workers, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE). Water temperatures along the Texas and Louisiana coastlines are approaching 90 degrees, and the heat index has risen as high as 110 degrees Fahrenheit in some areas.
These conditions are common in the Persian Gulf offshore oil industry, but are less often found on the U.S. Gulf Coast, and the industry's safety regulator says that it will have to adapt to higher temperatures. In "multiple recent instances," workers in the U.S. offshore oil patch have been so affected by the heat that they had to be evacuated to shore for medical evaluation, according to BSEE.
In one case, a platform operator noticed a contractor was experiencing dehydration symptoms. The individual was given fluids and told to rest, and he was later transported to shore for further evaluation. In another, an onsite medic observed that an employee was showing signs of severe heat exhaustion. The employee was treated with IV fluids on board. After consulting with doctors on shore, the individual was medevaced by helicopter to a local emergency room for further care.
Extreme heat has not only affected the U.S. Gulf. July 2023 was the hottest month on record worldwide, according to the World Meteorological Organization, and average global ocean surface temperatures hit a new record in early August.
An emerging El Nino pattern in the Pacific is a major contributor, along with other natural factors. Average temperature increases due to climate change have also raised the baseline and increased the odds of large scale heatwaves like the one recently experienced in Texas, per the World Weather Attribution Project, a partnership between researchers at Imperial College London and The Royal Netherlands Meteorological Institute.
"Maximum heat like in July 2023 would have been virtually impossible to occur in the US/Mexico region and Southern Europe if humans had not warmed the planet by burning fossil fuels," concluded WWA in a recent assessment.
Warming conditions will likely accelerate over the next year as the current El Nino event gains strength, and more records may be ahead - including the first-ever crossing of the 1.5 degree C temperature increase threshold targeted by the Paris Agreement.
"It is very likely that one of the next five years will actually be the warmest on record and a 66 percent chance — and more likely than not — that we will temporarily exceed 1.5 degrees of pre-industrial value," said Chris Hewitt, director of climate services for the WMO, speaking recently to VOA.
Elevated temperatures may affect offshore oil producers in the U.S. Gulf of Mexico, and BSEE advises operators to manage the effects of high heat on their workforce as they continue to extract oil and gas. There will be plenty of work activity to monitor: Offshore GOM E&P is expanding at a healthy rate, and oil output is expected to rise through 2027, according to the most recent forecast from the Bureau of Ocean Energy Management.
Despite Sanctions, Russia's Arctic LNG 2 On Track for Startup in 2023
The first gravity based structure and liquefaction train of the Arctic LNG 2 plant arrives in the Gulf of Ob, August 2023 (Novatek)
Despite sanctions related to the invasion of Ukraine, Russia's Arctic LNG 2 project is on track to go live at the end of this year, according to Chinese state oil and gas company CNOOC. The first liquefaction train arrived at its destination in the Gulf of Ob last week and is already in commissioning.
The giant LNG project initially relied on Western technology providers like Technip and Siemens, but these firms had to back out due to sanctions last year, taking their extensive experience in sophisticated energy projects with them. The first train was about 90 percent complete when they departed in 2022, but developer Novatek has been able to get the first liquefaction plant finished with the substitution of Chinese suppliers.
China has a significant investment in Arctic LNG 2, both as a financial backer and as a future customer. CNOOC holds a 10 percent share, and CNPC holds an additional 10 percent. France's TotalEnergies and Japan's Mitsui hold another 10 percent each.
The massive plant was built atop a concrete gravity-based structure (GBS), which was floated from Murmansk to the Arctic port of Sabetta in July and intentionally sunk onto a prepared permanent site last week. Commissioning is under way for the first plant now, and the two additional plants are under construction.
Image courtesy Novatek
According to Novatek executive Maxim Mikhalev, the second train's GBS has been finished and topsides are under construction at the firm's yard in Murmansk. Overall completion was at about 80 percent as of late April, putting train two on track for delivery to the Gydan Peninsula in 2024. The shoreside infrastructure at the port of Ultrenneye is nearly fully complete, the company says.
Some Ukrainian leaders have called for full Western sanctions on Russian LNG projects. Western secondary sanctions - that is, measures targeting all participants in a sanctioned activity, regardless of nationality - would help cut into Russian state revenues, according to Ukraine Parliament member Andrii Zhupanin. So far, Ukraine's allies have refrained from using secondary sanctions, which can have serious unintended side effects on markets and neutral nations.
"Secondary sanctions are necessary to compensate for an obvious weakness of existing primary provisions that preclude U.S. and EU companies from participating in Russian LNG infrastructure buildout, which is implicitly inviting Chinese companies to take their place," Zhupanin argued in a recent op-ed. "The introduction of secondary sanctions on Russia’s LNG sector in full swing, in particular, to force a full stop of the Arctic LNG-2 project, is the obvious necessary step that the EU and the US must implement to uphold [their] stated security and climate policies."
Crowley and Morgan Stanley Launch JV to Develop Wind Port Infrastructure
Crowley is involved with the Salem redevelopment project and looks to use the new JV with Morgan Stanley to redevelop existing facilities to support the offshore wind energy sector (Crowley)
Crowley is forming a new partnership with global financial services powerhouse Morgan Stanely as they look to further realize the emerging infrastructure opportunities to support the U.S. offshore wind energy business. The companies announced the formation of a new joint venture that will focus on accelerating long-term contracted growth infrastructure opportunities.
To be known as Crowley Wind Services Holdings, Morgan Stanley Infrastructure Partners (MSIP), the private infrastructure investment platform within the advisory firm, will hold a majority stake in the joint venture. Crowley will operate the business which will focus on repurposing and operating existing U.S. port facilities and leasing them under long-term contracts to offshore wind developers.
The companies highlighted the critical role the onshore terminals are planning in the growth of the offshore wind energy sector and the strong demand that will be created as the U.S. proceeds toward its target of 30 GW by 2030 and 110 GW by 2050. They highlight that the terminal business will support the manufacturing, assembly, and storage of wind farm components as well as provide developers with maritime services such as Jones Act-compliant feedering vessels to transport components from ports to offshore wind installations.
“We believe port infrastructure is essential to the build-out and long-term maintenance of offshore wind projects,” said Daniel Sailors, Managing Director, MSIP. “We are excited to partner with Crowley to provide the foundational infrastructure that will enable the development of this important industry.”
The joint venture looks to build off Crowley’s existing business expertise in end-to-end maritime and logistics capabilities using Morgan Stanley’s financial strength and access to capital.
Crowley has already entered into the wind port business, including port operations and terminaling, feedering vessels and operations, and project management. Through a public-private partnership with the Commonwealth of Massachusetts’ Clean Energy Center and the City of Salem, Massachusetts, Crowley plans to begin construction this fall on the Salem Wind Services Terminal, which will support the development and operation of offshore wind lease areas off the northeast U.S. coast. The project calls for repurposing an old power plant and parts of the space is already being used to support the first offshore wind farms being built near Martha’s Vineyard.
In addition, Crowley is pursuing the development of a U.S. West Coast terminal in Eureka, California, in a public-private partnership. Crowley also has a right-of-first-refusal agreement to lease and potentially develop a wind services terminal at Port Fourchon, Louisiana.
World's Largest Floating Offshore Wind Farm Officially Opened
Hywind Tampen located in the North Sea is the largest floating offshore wind farm (Ole Jørgen Bratland photo courtesy of Equinor)
Norway marked the official dedication of the Hywind Tampen wind farm with a ceremony attended by Crown Prince Haakon of Norway and Norwegian Prime Minister Jonas Gahr Støre on the Gullfaks C platform in the North Sea. Billed as the world’s largest floating wind farm the project is unique in that it is being used to power mature offshore oil production while it is also seen as a further proof of concept project to support the development of floating wind turbines.
The wind farm was developed by Equinor with the company noting it took five years for the project to go from the drawing board to completion. The wind farm, which generated its first power in November 2022, consists of 11 wind turbines. Hywind Tampen has a system capacity of 88 MW and is expected to cover about 35 percent of the annual need for electricity on the five platforms Snorre A and B and Gullfaks A, B, and C.
The wind farm is located nearly 90 miles from shore. At a water depth ranging between approximately 850 and 980 feet, Hywind Tampen will be exposed to some of the harshest offshore conditions. The field lines to the northwest of the city of Bergen, Norway.
Gullfaks in the North Sea with Hywind Tampen in the background (Ole Jørgen Bratland photo courtesy of Equinor)
The company highlighted that 40 years ago Gullfaks was Equinor's major qualifying test in field development on the Norwegian continental shelf. Gullfaks along with Snorre have now become the first oil and gas fields in the world to receive power from offshore wind, reducing CO2 emissions from their operations.
Development of the project was further complicated by the pandemic. Equinor reports they encountered COVID-related costs, delayed deliveries, and quality issues with some deliveries which also resulted in follow-up issues. They also had to manage increased market prices, currency exchange effects, and other challenges. Despite that, the project is fully operational as of August 2023.
They expect the larger size and challenging location of Hywind Tampen will contribute to the understanding and future development of floating wind. They note that already the project was able to reduce the cost of installed MW by approximately 35 percent compared to the first floating wind farm, Hywind Scotland.
Enova, a state enterprise owned by the Ministry of Climate and Environment launched in 2001 to promote environmentally friendly energy consumption and production provided approximately $217 million toward the development of Hywind Tampen. In addition, the Norwegian Business Sector's NoX fund supported the project with just over $50 million to stimulate technology development within offshore wind power and emission reductions.
Hywind Tampen is the first offshore wind farm in Norway, demonstrating the opportunities for renewable power production on the Norwegian continental shelf.
His Majesty Crown Prince Haakon and Prime Minister, Jonas Gahr Støre making the ceremonial connect August 23, 2023 (Ole Jørgen Bratland photo courtesy of Equinor)
U.S. Approves Revolution Wind to Become Fourth Large, Offshore Wind Farm
Revolution Wind becomes the fourth large offshore widn farm to complete the U.S. review process (Orsted)
The Department of the Interior today announced its approval of the Revolution Wind offshore wind farm project which will provide energy to both Connecticut and Massachusetts. This is the Department’s fourth approval of a commercial-scale, offshore wind energy project as the U.S. offshore wind energy industry continues to gain momentum.
Located about 15 nautical miles southeast of Rhode Island and about 12 nautical miles from the coast of Martha’s Vineyard, Revolution Wind will have an estimated capacity of 704 megawatts of energy, capable of powering nearly 250,000 homes. The project will split its power providing about 400 MW to Rhode Island and the remaining 304 MW to Connecticut. In the final form approved by the Bureau of Ocean Energy Management, the project will consist of 65 wind turbines and two offshore substations.
The project is being developed in a partnership between Ørsted and Eversource. The companies acknowledged the milestone for the project saying they remain on track to begin onshore construction activities in the coming weeks. Offshore construction is scheduled to ramp up in 2024 with the project expected to be operational in 2025.
“Companies have quadrupled their U.S. offshore wind investments to over $20 billion, representing thousands of good-paying union jobs,” said Assistant to the President and National Climate Advisor Ali Zaidi, highlighting the release of BOEM’s record of decision as the next major step in the industry. “Today’s approval of a fourth major offshore wind project is our latest permitting milestone that will help strengthen America’s energy security, make our power grid more reliable, lower energy costs, and cut dangerous climate pollution.”
Construction on the first two large offshore wind farms is already underway in Massachusetts and New York. Avangrid which is leading the development of Vineyard Wind 1 which will be near Revolution Wind highlights that the first nacelles and wind turbine blades have now arrived at the staging facility in Massachusetts. The first two projects, Vineyard and South Fork, are targeting completion before the end of the year and BOEM previously also approved the Ocean Wind 1 project offshore New Jersey.
BOEM highlights that the review process for Revolution Wind included considering the final Environmental Impact Statement alternatives, including public comments received. The Department approved Revolution Wind’s Construction and Operations Plan (COP) under its preferred Alternative G identified and analyzed in the EIS. This preferred alternative will meet energy needs by installing fewer wind turbines than originally proposed by the developer to reduce impacts to visual resources, benthic habitat, and ocean co-users. Alternative G includes up to 79 possible locations for the installation of 65 wind turbines and two offshore substations within the lease area. The Record of Decision is published on BOEM’s website.
The Record of Decision includes measures aimed at avoiding, minimizing, and mitigating the potential impacts that may result from the construction and operation of the project. Among them, Revolution Wind has committed to establishing fishery mitigation funds to compensate losses directly arising from the project incurred by recreational and commercial fisheries in Rhode Island and Massachusetts, and to creating a direct compensation program to reimburse lost revenues for fisheries from other states. Additionally, Revolution Wind has committed to measures such as vessel speed restrictions and construction clearance zones to reduce the potential for impacts to protected species, such as marine mammals, sea turtles, and Atlantic sturgeon.
“Together with industry, labor, and partners from coast to coast, we are building an entirely new industry off the east and west and Gulf coasts,” said Interior Secretary Deb Haaland.
The Biden administration highlights that companies have announced 18 offshore wind shipbuilding projects as well as investments of nearly $3.5 billion across 12 manufacturing facilities and 13 ports to strengthen the American offshore wind supply chain. Ørsted and Eversource, for example, have committed to more than $100 million of direct investment to the State Pier redevelopment project in the Port of New London, Connecticut to create a marine terminal that is being used for staging and assembly. They have already also ordered five crew transfer vessels that will be built by Blount Boats and Senesco Marine both in Rhode Island.
BOEM reports it remains on track to complete reviews of at least 16 offshore wind project plans by 2025, representing more than 27 gigawatts of energy.
Union Members Authorize September Strike at Chevron Australia’s LNG Ops
Chevron's Australian LNG operation accounts for a fifth of global supply (Wheatstone file photo)
The Offshore Alliance which represents workers at Chevron’s Australian LNG production and distribution facilities scheduled an unspecified industrial action for September 7 after receiving nearly unanimous support for a strike from the 500 union members working at the company’s three plants. With Chevron Australia accounting for more than five percent of global LNG production, the news of the strike sent the European market for liquified natural gas up more than 10 percent according to Reuters.
Voting for a potential strike at Chevron’s facilities began last week with the union reporting in a filing to Australia’s Fair Work Commission that 99 percent of the 450 members at Chevron’s Gorgon LNG facility and Wheatstone downstream processing plant voted at the end of last week in favor of a job action. Today, polling was completed for the Wheatstone offshore platform where all 37 union members also voted to support a job action.
Under Australian labor law, the union needs to give notice and the action could be for a set number of hours, a ban on certain functions, or a full strike. Reuters is quoting unnamed sources saying that the union plans to stop work for three hours on September 7 and then escalate the number of hours if there is not sufficient progress on the negotiations.
Chevron confirmed that it had received the notice without announcing the details of the planned action. A company spokesperson said they don’t believe a job action is necessary for an agreement to be reached. In similar negotiations, Woodside and the union had set last Wednesday as a deadline in their talks and after a marathon negotiating session reported an in-principle agreement. Chevron combined with Woodside represents a tenth of global LNG production.
“Our members are locked and loaded and ready for Protected Industrial Action,” the Offshore Alliance wrote on its social media account. “A settlement is increasingly likely to come after we ‘jam up’ Chevron’s LNG exports.” The Offshore Alliance was formed as a combination of the Maritime Union of Australia and the Australian Workers’ Union to represent the employees at the major LNG producers.
Chevron’s Gorgon facility has an annual capacity of 15.6 million metric tons. In June the company reported it had production of first gas from the Gorgon Stage Two development off the northwest coast of Western Australia which included the addition of 11 wells and accompanying offshore production pipelines and subsea structures to maintain feed gas supply for the gas processing facilities on Barrow Island. The facility is a major LNG supplier to Asia Pacific as well as Australia’s domestic supply of LNG.
Just last week, a five percent increase in capacity was announced at the domestic gas facility at the Chevron-operated Wheatstone Project near Onslow. The company completed technical enhancements and plant modifications to increase production rates. The facility handles nearly nine million metric tons of LNG annually.
The Offshore Alliance highlighted that it had reached a new agreement with three of the operators and is now concentrating on Chevron saying that “no members will be left behind in our eventual settlement of our bargaining claims,” which center on wages and working conditions. INPEX reached terms on a new agreement early in 2022, but Shell only came to terms with the union after a 76-day job action that ended last September. Woodside has said it was confident that the in-principle agreement reached last week could be finalized and the union agreed not to proceed with a job action while the agreement was completed, submitted to the membership for a vote, and sent to the Fair Work Commission for approval.
Woodside and Australian Unions Reach In-Principle Agreement on LNG Contract
North Rankin Complex, North West Shelf Project, Western Australia (Woodside)
Woodside Energy and its labor unions announced that they have reached an in-principle agreement for an enterprise labor agreement for the company’s liquified natural gas operations in Australia. Energy market analysts welcomed the news noting that the threatened strike against Woodside and Chevron was putting as much as 10 percent of the world’s LNG supply at risk. Negotiations are still ongoing with Chevron.
Representatives for the Australian Workers’ Union called the agreement a “huge win” for members. The contract if completed would the be first enterprise-wide agreement in decades covering both on-shore employees and the over 150 workers at Woodside’s offshore LNG platform Goodwyn Alpha, North Rankin Complex, and Angel Platform. It also marks the union’s successful negotiations with three of the four large producers in Australia.
The Offshore Alliance, which is made up of the Australian Workers’ Union and the Maritime Union of Australia, called the agreement a “positive step” saying that Woodside had made a strong offer without the unions having to proceed with their threatened industrial action. The alliance reported that the in-principle agreement came as a 15-hour meeting and at the deadline set by the union to start a countdown toward a strike. The unions had authorization to begin a strike which was expected to start as early as September 2.
“Despite the lengthy road to this point, we are relieved that Woodside has now taken a more pragmatic approach and decided to offer our members an enterprise agreement with industry-standard terms and conditions,” said AWU WA Secretary Brad Grandy. Woodside in its statement said that the agreement covered all claims related to remuneration and other terms and conditions of employment.
Union members were scheduled to meet today to review the terms of the in-principle agreement and determine next steps. Woodside said it would be working with the union to finalize the agreement which would require a union vote and approval by Australia’s Fair Work Commission. They noted that the unions had agreed not to file for an industrial action while the process is underway while the union said members would also consider withdrawing their notices.
Just four days ago, the Electrical Trades Union which was negotiating alongside the alliance said it was “gearing up to take on the giants,” referring to Woodside and Chevron. “ETU members refuse to settle for anything less than they rightfully deserve,” the union warned.
Last year, the unions held out for 76 days in a strike against Shell before reaching a new agreement. Workers at INPEX secured a deal with the union earlier in 2022.
Chevron remains the last of the majors to reach terms with the union. The Offshore Alliance members began voting to authorize a possible strike. Union members at both Chevron’s downstream services and Gorgon platform were due to return their ballots today while workers at Chevron’s Wheatstone platform were due to submit their votes on Monday, August 28.
Industry analysts are hopeful that the initial agreement with Woodside would clear the way for a similar resolution with Chevron. Traders in LNG remained cautious but the announcement from Woodside and the unions took some pressure off the market which was bracing for a potential strike.
Wärtsilä Offers Onboard Carbon Capture and Storage Feasibility Studies
With CCS-Ready scrubbers now being sold at pace, Wärtsilä’s studies across a range of vessel types come as next step in rapidly accelerating trajectory for CCS in shipping
Technology group Wärtsilä is now offering carbon capture and storage (CCS) feasibility studies to shipowners and operators, in another milestone on its journey to research, develop and bring to market maritime CCS technologies. The studies have already been conducted on a range of vessel types including ro-ro and ro-pax vessels, a drill ship, a container vessel and a gas carrier.
The process takes four to six months of study and design work. Wärtsilä Exhaust Treatment’s experts are involved in ship design at an early stage to conduct engineering work to understand how CCS can be smoothly integrated once the technology is launched to market.
Wärtsilä is conducting the feasibility studies across both newbuild and existing vessels. Retrofit CCS installations will be significantly smoothed by the presence of a scrubber onboard. Wärtsilä Exhaust Treatment is already offering CCS-Ready scrubbers to the market, which are integrated onboard in a way that enables a CCS system to be added easily in the future once the technology is commercialised.
Once completed, the CCS feasibility study work enables Wärtsilä to provide customers with a fully rounded commercial offer that can be shared with shipyards to get an exact quote for installation. During the feasibility studies, Wärtsilä’s experts closely examine the existing naval architecture of the ship and work to understand how the power, space and exhaust demands of CCS can be accommodated onboard. Owners will receive a qualified analysis of the costs of CCS integration, and a clear list of considerations on how a potential retrofit would be conducted in the least intrusive way.
Conducting the studies today enables Wärtsilä to bring forward the early stages of CCS integration and, in doing so, lower the barrier to entry once the technology is commercialised in the near future. The studies also serve to educate customers on the upsides and particular considerations associated with installing CCS onboard their vessels. Finally, as the studies will run in parallel with the implementation of new environmental regulations for shipping, owners who conduct them today will be ‘ahead of the curve’ versus their peers.
Sigurd Jenssen, Director, Wärtsilä Exhaust Treatment, said: “Launching these feasibility studies and being able to offer them to market is the exciting latest step in our process of bringing carbon capture and storage to market in shipping. It builds on the market-leading work we are conducting in our test hall in Moss, where our technology is already demonstrating our targeted 70% capture rate, and enables us to directly engage with customers to smooth the CCS adoption process in the near future.”
Jenssen continued: “By conducting these studies today, we are already building a considerable track record and understanding of how this technology will work across multiple vessel types. It builds on the considerable uptake we have already seen for our CCS-Ready scrubbers, which show that the industry is not only exploring CCS as a speculative technology, but is actively investing in its foundations as a decarbonisation solution. We look forward to conducting more of these studies in the coming months as we work to bring our CCS system to market.”
When a customer opts for a Wärtsilä CCS-Ready scrubber, the company takes measures during the scrubber installation process to ensure adequate space for the future installation of CCS system. CCS-Ready scrubbers are also designed to enable smooth integration with a Particulate Matter filter.
Wärtsilä Exhaust Treatment is the market-leading marine exhaust gas cleaning system manufacturer, with a range of lifecycle solutions. Wärtsilä offers integrated compliant solutions for all types of ships, and in open loop, closed loop or hybrid configurations. Wärtsilä’s scrubbers are built with a modular approach to future technology development, creating a platform for the abatement of other emissions from shipping beyond sulphur.
Denmark Allocates $3.9B to Carbon Capture/Storage as it Accelerates Timing
With Avedore as a backdrop, Denmark outlined a comprehensive approach to carbon capture and storage advancing the deadline to 2029 (Orsted file photo)
Denmark announced a comprehensive plan for carbon capture and storage that includes significant government support as the country also accelerates its timeline while saying that CO2 capture and storage is one of several critical tools to achieve climate goals in Denmark, Europe, and the rest of the world. The announcement of the new plan comes just a week after Denmark postponed its second tender for offshore CO2 storage saying the government needed to finalize a comprehensive plan that resolved government participation in the industry.
“We are moving the requirement for full capture from 2030 to 2029 so that we get more CO2 from the air and into the underground faster,” said says Climate, Energy and Supply Minister Lars Aagaard during a briefing about the new plan at Avedøreværket, a power station just south of Copenhagen. “The plan must also ensure a clearer framework for the burgeoning industry and in this way bring the Danish CCS industry up in scale and down in price. It may well be that it's geeky, but it's in the geekery that things happen.”
The plan was presented as a comprehensive approach to with the government stressing that by pooling resources and creating clear framework conditions for CO2 capture and storage it was providing clarity to Danish industry. The energy minister was joined by Business Minister Morten Bødskov and Transport Minister Thomas Danielsen in presenting the new plan.
Instead of smaller tenders, the government plans to launch two large, comprehensive tenders, one in 2024 and a second in 2025. They plan to invest approximately $3.9 billion, with approximately $1.5 billion for the 2024 tender and a further nearly $2.4 billion in 2025 allocated over a 15-year period to support the programs. The goal for 2024 is to set up plans for 0.9 million tons of carbon capture and storage and a further 1.4 million tons in the 2025 tender. Going forward the government will continue to hold 20 percent state ownership, which is the model that was used for the first three licenses and the key point that the ministry said needed to be resolved before the next offshore tender.
While saying as a country Denmark must capture at least 3.2 million tons of CO2 annually by 2030, the new plan moves forward by one year the requirement for the programs to 2029. They said the possibility is also provided to start the large-scale capture and storage efforts by 2028.
The plan also ensures clear framework conditions for the industry regarding ownership and regulation for the transport of CO2 via pipes. Among other things, the government said it will expand the existing rules for the transport of CO2 to include all forms of CO2 transport, which is particularly important for the transport of CO2 for use in PtX facilities and for CO2 that must be shipped via ports for offshore storage.
The goal in addition to providing greater clarity was to increase the size and scope so that more companies can bid and participate in the efforts.
Denmark earlier this year awarded the first exploration licenses for offshore carbon storage after providing a provisional license for the testing and demonstration of the world’s first offshore storage operation. In addition, they awarded the first licenses for industrial plants to establish capture initiatives first centered on one of Ørsted’s plants but designed to also create the infrastructure for other industrial emitters to participate.
ADM Fagan: U.S. Coast Guard Must Learn From its Workplace Culture Problems
Commandant Adm. Linda Fagan (Congress.gov file image)
After revelations of an unreleased investigation into a pattern of sexual harassment and assault at the U.S. Coast Guard Academy, Commandant Adm. Linda Fagan has ordered a service-wide review of command climate and culture. In an open letter on Monday, Fagan addressed the early findings, and she compared the service's ability to learn from operational challenges with its ability to learn from internal, cultural problems.
"It is clear to me that we are not fully applying our core values, principles of operation, or ethos to our own workplaces. In some places in our Coast Guard, there is an unacceptable disconnect between the workplace experience we talk about, and the experience our people are actually having," Fagan said.
The commandant cited reports of "sexual assault, harassment, hazing, bullying, retaliation, discrimination, and other harmful workplace behaviors," at commands across the service. She warned that these incidents not only harm victims, they also tend to erode trust in unit leadership - reducing readiness and the ability to execute on the Coast Guard's core mission set.
In her appeal, Fagan sought to break down the distinction between externally-facing operational challenges and internal workplace problems. Both require an effective response to ensure readiness. "Our operational success depends on our people, and our people are sustained by a positive workplace environment," she said.
Though it went unsaid, the Coast Guard (like all of the armed services) is having a hard time recruiting and retaining enough personnel to meet end strength goals. Any public perception of a negative work environment could hinder efforts to close its workforce fit-and-fill gap.
To resolve workplace culture deficiencies, Fagan called for more transparency and more willingness to call out problems. The service has developed systems and practices that allow it to learn from operational mishaps like collisions or sinkings, but it has no equivalent for sexual harassment, bullying or toxic leadership, she said.
"We do not discuss incidents and do not encourage leaders throughout the Coast Guard to learn from them. Our people do not feel as confident speaking up about workplace behaviors as they do operational risks," Fagan said. "We must give our workplace climate the same transparency and attention as we do our operational missions."
