Thursday, March 14, 2024

British Columbia launches Energy & Mines Digital Trust for international ESG reporting compliance

Amanda Stutt | March 14, 2024 |

Stock image.

After two years of testing, Energy & Mines Digital Trust (EMDT), a collaboration between the government of British Columbia (BC), private-sector and industry associations, has launched digital credentials for mining operators to streamline the process of sharing confidential information securely.

Major mining operators in BC can now receive their Mines Act Permit as a digital credential, to prove their required operational permit status to investors, customers and regulators. The digital credential is tamper-proof and contains data verified from the government of BC.

Mines can use digital credentials to submit Towards Sustainable Mining scores and share verified environmental, social, and governance (ESG) data to increase competitiveness in sustainability-focused markets.

The BC government has been often critiqued by industry for long delays in a system perpetually backlogged with permitting applications. There are eight new mines or mine expansions in the pipeline worth a potential total investment of C$6.6 billion ($4.9bn) while new critical minerals mines could generate C$800 billion ($600bn), according to the Mining Association of British Columbia.

Seabridge Gold’s KSM project, in the province’s Golden Triangle, is currently ranked both the biggest gold project in the world, and the third largest copper project.

But the provincial government has said permitting solutions are a priority and in an emailed statement to MINING.com, the Ministry of Energy, Mines and Low Carbon Innovation said it has made progress improving timing and transparency of permitting processes to support sustainable economic development, while maintaining environmental protections.

“Since March 2022, we have reduced the backlog of permits by 52%. Budget 2024 includes C$24 million to support ongoing dedicated resources for mine permitting, consultation and engagement with First Nations, as well as to sustain the ongoing improvements to mining regulatory processes, creating a strong foundation for realizing critical mineral and broader mining sector opportunities,” the Ministry said.

The EMTD is part of a C$6.6 million investment in technology to ensure that internal major mine permitting processes are coordinated and efficient, it said.

“The project’s been ongoing for a number of years and in January we went live,” Nancy Norris, senior director of ESG & Digital Trust, BC Ministry of Energy, Mines and Low Carbon Innovation told MINING.com in an interview.

Norris said the EMTD is also working closely with the United Nations (UN) to take what has been learned from the project to an international context within the framework of UN sustainability goals.

Norris is also co-lead on the UN Transparency Protocol project, which is adapting the learnings from the BC Digital Trust work to international supply chains, such as Critical Raw Materials.

Nancy Norris, senior director of ESG & Digital Trust, BC Ministry of Energy, Mines and Low Carbon Innovation. Submitted image.

“One of the issues with blockchain, having one platform where everyone pushes their data to is that it’s very difficult, especially in the mining sector for something like that to scale and be globally adopted,” Norris said.

“You need something that’s very flexible, low cost, easy to implement so that each actor along a supply chain can just link their data basically and they can share as much data as they’re comfortable sharing, which gets at that kind of commercial privacy and competitiveness.”

The first phase of the project was about getting technically ready and able, and the province has so far issued two digital credentials.

“Having those types of credentials that you can then share that information builds along the supply chain,” Norris said. Through the UN project, we’re talking to smelters and downstream operators along the supply chain [about] what kind of data needs to be surfaced to meet the requirements of these large consuming economies like the EU and the US that are starting to legislate.”

Norris pointed to the EU’s Carbon Border Adjustment Mechanism – its tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries.

Each actor along the supply chain will be able to prove the end products’ sustainability factors about it, such as carbon intensity and water usage levels.

“The whole purpose of this is to be able to differentiate producers that are actually adhering to sustainable practices and be able to report on them in a way that can be consumed by importers in the EU or the US so those products could actually get premium price,” Norris said.

“What we’re trying to do is create the digital tools that will enable this kind of uplift for miners that are actually working diligently towards making their production more sustainable.”

China to invest in Canadian mining despite crackdown, envoy says

Bloomberg News | March 14, 2024 |

Chinese Ambassador to Canada Cong Peiwu. Credit: Canada-China Business Council.

China’s ambassador says the country will continue to do business in Canada’s domestic critical minerals sector despite Prime Minister Justin Trudeau’s “unfortunate” crackdown on foreign investment.

Ambassador Cong Peiwu said the Canadian government is “wrong” to prevent Chinese investors from buying majority stakes in domestic mining companies, like it did in 2022 when it forced three Chinese state-owned firms to divest from a trio of lithium companies.

“Politicizing normal commercial cooperation and using national security as a pretext for political interference is wrong. China has expressed firm opposition to this,” said Cong in an interview with Bloomberg News on Wednesday.

“We’ll continue to do business on the basis of mutual respect and mutual benefit.”

The comments follow remarks by Canada’s Natural Resources Minister Jonathan Wilkinson last week warning miners that Chinese stakes will face strict national security reviews.

Chinese investment has continued to flow through Canada’s mining sector more than a year after Trudeau moved to tighten its foreign ownership rules. This year alone, Zijin Mining Group Co. initiated plans to buy a 15% stake in Canadian copper company Solaris Resources Inc., Ganfeng Lithium Group Co Ltd. moved to take a 15% stake in Vancouver-based Lithium Americas Argentina Corp. and Yintai Gold agreed to buy gold explorer Osino Resources Corp. for C$368 million ($271 million).

Canadian government officials, speaking on condition they weren’t named, have told Bloomberg they are tracking the issue closely and are considering whether further measures are needed beyond the current national security review regime.

While Wilkinson warned that recent transactions will be subject to rigorous reviews, Cong urged Canada’s government to “respect market laws, rather than shouting slogans against China and waging these wrong-placed accusations against China by over-stretching the concept of national security.”

Read More: Canada sees China as less ‘dependable’ partner on critical minerals, minister says

China has found an ally in Canada’s cash-strapped junior mining firms, some of which have called on Ottawa to relax tougher rules on Chinese investment while the sector struggles to raise capital while commodity prices are low.

Cong said China’s investments provide much-needed funding to those firms at a time when metals have become an essential ingredient to the global transition away from fossil fuels. Minerals including lithium, copper, nickel and cobalt are key components of electric vehicles, solar panels and wind turbines, though countries like Canada and the US have pushed to build a domestic supply chain to reduce China’s dominance in the global mining industry.

“Critical mining is about those materials to be used in sectors like new-energy vehicles,” said Cong. “That’s good for the whole world. We’re talking about coping with climate change.”

(By Jacob Lorinc and Brian Platt)

Cliffs CEO weighs lowball bid for US Steel with union backing

Bloomberg News | March 14, 2024 |

Cleveland-Cliffs President & CEO Lorenco Goncalves.

Source: YouTube

Cleveland-Cliffs Inc. chief executive officer Lourenco Goncalves said he’d consider another bid — with union support — for United States Steel Corp., albeit at a significantly lower price than the existing offer from Nippon Steel Corp.

That potential bid, though, is dependent on the current Nippon-US Steel tie-up falling apart, Goncalves said in a phone interview. If he were to make an offer, the Cliffs CEO said he’d have the backing of the influential steelworkers union that’s also blasted Nippon’s takeover approach.

The Cliffs CEO, known in the industry for his colorful and combative approach, touted his closeness and support from the influential steel union — and then proved his point by dialing USW President David McCall into the call with Bloomberg News. In the call, McCall reiterated the union’s support for a potential Cliffs bid.

Goncalves also said he’s talking regularly to the White House.

The White House declined to comment.

A recent share plunge for US Steel shows that investors are increasingly concerned about the future of the Nippon deal. President Joe Biden on Thursday said the iconic Pennsylvania company should retain American ownership. Biden’s move against a takeover by a the Japanese company came despite the risk of upsetting a key ally.

US Steel plunged as much as 11% on Thursday to $36.38. The stock is down about 20% in two days, on pace for the biggest such loss since 2020.

Nippon’s proposal is to buy the company for $55 per share in cash.

If given the opportunity, Goncalves would consider a bid “in the $30s,” he said in the interview Thursday.

Nippon didn’t immediately respond to a request for comment. On Wednesday, Nippon Steel and US Steel in a joint statement said the companies will continue to advocate for the deal, and “we are confident that fair and thoughtful evaluation will result in its approval.”

Biden’s Intervention

Biden’s statement marks a rare presidential intervention in a transaction that outside an election year would have drawn less public scrutiny. Despite its storied history, US Steel’s role in the economy has diminished over several decades, a period during which producers in Asia have risen to dominate the global steel market. And while Nippon Steel’s proposed $14.1 billion acquisition targets a historic business name, a takeover in the US commodities industry by a company based in a friendly country is hardly unusual.

Still, the announcement of a Japanese company’s acquisition triggered opposition from Republican and Democratic lawmakers as well as the influential United Steelworkers union. Biden’s allies have urged the administration to kill the deal over national security concerns and the threat to unionized steel jobs.

Goncalves said he thinks it’s a “foregone conclusion” the Nippon deal will fall apart.

“There is no more lobbying, there’s no more negotiation. It’s over. It’s over,” Goncalves said, referring to Nippon Steel’s deal to buy US Steel. “And the only other buyer that the union would accept is Cleveland-Cliffs.”

Union support

After dialing McCall into the phone interview, Goncalves said to the union leader: “I would like you to, if you can, express to him — to confirm or negate — if you disagree with me, that Cliffs is the only company the union would endorse to acquire.”

“Yes, because you still have our right to bid,” McCall responded to Goncalves. He was referring to a legal right the union had to launch a counteroffer for US Steel, which it transferred to Cliffs last year.

The Nippon bid remains on the table and it’s not clear what implications Biden’s remarks might actually have for an ongoing federal review.

Still, the reiteration of support from the union for Cliffs will be a blow to the Japanese company, which has been seeking to win over McCall and his labor group in order to reduce the political pressure against the deal.

(By Joe Deaux)

Alexander Saverys Challenges Industry’s Approach to the Future

While the shipping industry is optimistic about the near-term outlook despite many of the well-publicized challenges, Alexander Saverys, CEO of CMB and now Euronav, however, challenged the industry to think differently about its future. Appearing as the keynote speaker for the Capital Link Forum, he reiterated his vision of the opportunities instead of challenges with decarbonization, a topic that consumed much of the discussion during the day-long event in New York City.

A few consistent themes emerge as executives and the financial community discuss the future and their outlook. The biggest concerns are the steps required and potential impact of environmental regulations and the uncertainties that remain over key elements including future fuels. Most agree that the near-term goals for emissions reductions of 30 percent by 2030 are very achievable with the options at hand. They point to vessel refits as the easiest options increasing efficiencies through management systems, alterations to bows and their bulbs, adding ducts and changing propellers, as well as new efficient hull treatments and paint.

The uncertainty comes in the second phase of carbon reductions where owners highlight that they are being forced to make vessel investments with new orders before the solutions are settled. Waiting they point out means being too late. The view is that there will be no one fuel solution and that the industry will still need cooperation across sectors and government support. They accept and expect carbon fees while calling for a universal as opposed to a regional approach.

Alex Saverys however in his keynote took the stage in front of analysts who have been unsupportive and critical of CMB’s response to John Fredricksen’s overtures to Euronav and was unapologetic not only defending his family’s approach but challenging the industry about how it looks at the future. He spoke after a tumultuous nearly two years in which they opposed the merger of Frontline and Euronav. Ultimately, they completed possibly one of the biggest asset transactions ever in the industry selling Frontline 24 VLCCs while acquiring full control of Euronav and then merging the company with CMB.TECH to execute the family’s vision of diversification and decarbonization.

“We believe pure-play shipping is a thing of the past,” declared Saverys defending their approach. “Regulations will not go away,” he highlighted saying that they “see a huge opportunity in decarbonization.”

He called the $50 billion investment required to take shipping green achievable saying instead of seeing it as a threat for the industry and his company, it is a “huge opportunity.” He said it is all about how the industry adapts to the changing environment. He described a strategy of diversification for the new company which will be CMB.TECH with Euronav as its crude oil tanker division along with its operations in bulkers, chemical tankers, service vessels for offshore wind, and a growing fleet of alternative fuel vessels. He said their focus is hydrogen for smaller ships and ammonia for larger with an approach of using carbon to decarbonize and produce a “future-proof” company.

While analysts repeatedly cautioned about the uncertainties and said that things can change rapidly in the shipping world, the consensus at the Capital Link Forum was positive with most sectors pointing to an ongoing upcycle supported by limited new tonnage in the near term. Product tankers said the sector was “doing fantastic,” and the market is in a great position for the next few years, while gas carriers pointed to the continued strong demand for LNG noting LPG is expected to be a bigger part of the mix and the potential for ammonia is significant especially as existing gas carriers can also serve the emerging market. Even the beleaguered container segment highlights that overcapacity is being consumed by the diversions away from the Red Sea while smaller ships and feeders are a stronger subsegment as the major carriers consolidated and focused on large ships.

All the sectors, except, containerships, point to the relatively limited orderbooks for new ships and the long lead time to get new tonnage. For example, there are only five to six new VLCC tankers expected in the next two years as the oil sector has begun what analysts see as a strong upcycle.

They point to the lack of building slots for many classes of ships till 2027 or beyond. The shipbuilding challenges will not improve either as they highlight there is no country with the available deepwater, infrastructure, and attractive labor market making it possible to challenge China and Korea’s dominant position in shipbuilding.

They point to the need for overarching strategies to address the challenges of decarbonization noting with product tankers for example saying that the IMO is the reason that orders are currently so low in their segment and others. Yet, they also welcome that there is a single global regulator while calling for greater industry cooperation and noting there is a lot of passion on decarbonization that could be used to achieve what is possible. For the segments that interact with consumers or have long-term charters, they point to the opportunities of customer partnerships and investments to help achieve what will be required.

Much uncertainty however remains with most predictions saying that the problems in the Red Sea will persist and noting political challenges such as how Europe will handle the future of the Russian sanctions if there is a resolution in Ukraine. The one thing that they felt is certain is the rapid change and unpredictability of factors that impact shipping operations.

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

Eyesea and Aurora Expeditions Record First Pollution Data from Antarctica

[By: Eyesea]

In a groundbreaking collaboration, Eyesea, a global maritime pollution mapping initiative, and Aurora Expeditions, a leading expedition travel company, have successfully recorded Eyesea’s first in-app marine pollution data reports from Antarctica. This effort marks a significant milestone in the project’s pollution monitoring reach and underscores the importance of preserving the pristine ecosystems of the southernmost continent.

Eyesea, known for its innovative use of technology to report and manage maritime pollution, partnered with Aurora Expeditions to test the performance of the Eyesea app in remote locations, measure clean- up work, and to assess the presence of pollutants in the region, providing valuable insights into pollution’s impact on one of the world's last untouched frontiers.

The expedition, led by the crew of Aurora Expeditions' vessel the Sylvia Earle, recorded pollution through the Eyesea app. "This collaborative effort between Eyesea and Aurora Expeditions is developing into a groundbreaking achievement in the field of pollution monitoring," said Graeme Somerville-Ryan, Co-founder at Eyesea. Aurora has helped us test our app’s capabilities around GPS reception in very remote areas and delayed data upload. The data collected will not only enhance our understanding of the environmental challenges facing Antarctica but will also serve as a vital tool for conservation efforts and future policy decisions driven by data."

Aurora Expeditions, recognized for its dedication to sustainable and responsible travel, expressed its commitment to using its vessels, crews, and geographic reach to advocate for the protection and preservation of Antarctica.

"Our crews and passengers typically recover any pollution they encounter on our voyages, when and where conditions safely allow. It is exciting to have partnered with Eyesea, and this partnership is another example of how the travel industry can participate and lead in sustainability initiatives," said Hayley Peacock-Gower, Chief Marketing Officer at Aurora Expeditions. "As a company we are deeply invested in responsible tourism, we believe that it is our duty to contribute to the preservation of the world's most delicate ecosystems."

The collaboration between Eyesea and Aurora Expeditions highlights the potential for technology and responsible tourism to drive positive change in safeguarding the planet's marine environments. The recorded pollution data will be made publicly accessible, fostering transparency and encouraging global collaboration in the ongoing efforts to preserve Antarctica's unique biodiversity.

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Titanic II – The Ship of Dreams? Palmer Says He is Ready to Move Forward

A decade after proposing to recreate one of the most famous ocean liners of all time, Australia’s eccentric businessman, entrepreneur, and politician Clive Palmer reemerged today to say the project is back underway. Far from a dream, Palmer insists after two failed previous attempts they are ready to move forward and the Titanic II should be ready for service by 2027.

“Blue Star Line will create an authentic Titanic experience, providing passengers with a ship that has the same interiors and cabin layout as the original vessel, while integrating modern safety procedures, navigation methods, and 21st-century technology to produce the highest level of luxurious comfort,’’ Palmer told an audience gathered to hear his announcement at the Sydney Opera House. He said they had been delayed by the pandemic and other issues as well as he was busy with other pursuits but now, he wants to complete the ship.

The plan was launched in 2012 but ran into problems with Chinese business partners and was suspended in 2015. They came back out in 2018 saying that they had resolved issues and were back on track including announcing the well-known Finnish design company Deltamarin was reviewing the project. They also retained V.Ships Leisure reporting the new version of the famed ocean liner would be ready for its maiden voyage by 2022.

Palmer says they have “re-engaged with partners,” and the design plans for the ocean liner are being finalized. While the goal is to recreate the look and feel of the Titanic, the famed ocean liner that sunk on its maiden voyage across the Atlantic in April 1912, they are also adapting the design to modern technology.

The Titanic II would be approximately 56,000 gross tons with nine decks. It will have an overall length of 882 feet (269 meters) and a beam of 106 feet (32.2 meters) versus the original which was 46,000 gross tons with the same length but a narrower beam of 92.5 feet. Palmer’s design adds a service deck that would include modern lifeboats to meet the regulations with other elements of the design also adapted to meet IMO regulations. Instead of boilers and gangs shoveling coal, he promises the ship would use modern diesel engines.

The plan calls for a recreation of the bridge of the Titanic for the passenger experience but they will of course have all modern technology, the latest navigation, and safety systems. The renderings show the addition of bow thrusters and azipod propulsion which would also address maneuverability issues that are thought to have been part of the demise of the vessel. (Titanic aficionados argue over points such as if the rudder was too small making her slow to turn.)

Palmer reports that Deltamarin has undertaken a review of the Titanic II project ensuring the vessel will be compliant with all current safety and construction regulations as well as meeting his company called Blue Star Line’s design criteria. Other global partners include V.Ships Leisure who will be responsible for project support, building supervision, and ship management services, and Swedish marine architecture and interior design company Tillberg Design.

Palmer promotes the concept as offering passengers “an unparalleled journey back in time.” The plan calls for recreating the interior designs of the Titanic, including its famous grand staircase. Accommodations would be in 835 cabins, including 383 in first class, 201 in second class, and 251 in third (or steerage) class. The total capacity would be 2,435 passengers.

Onboard passengers would be encouraged Palmer says to dress in period styles and partake in all the experiences of the Titanic of 1912. Among the offerings he says would be a recreation of the steerage dining room which served the immigrants aboard at long, communal tables and basic meals such as stew with mashed potatoes. (Modern food choices would also be available.) He also adds viewing platforms in the forward two funnels.

The famed movie starring Leonardo DiCaprio and Kate Winslet was a 1997 box office blockbuster and called the Titanic, “The ship of dreams.”

Palmer says they will complete the designs and launch the construction tender in June. He says they are focusing on European shipyards and expect to sign a contract before the end of 2024. Construction he says would begin next year in time for the 2027 maiden voyage.

The initial plan is to complete the maiden voyage between Southampton and New York. In addition to Atlantic crossings, Palmer says his version will circumnavigate the globe “inspiring and enchanting people.”

Palmer scoffed at reporter questions saying he has the time and the money to complete the project. He said he has enough money from his mining business to build several Titanics. The businessman who turns 70 years old in a matter of days sees this as a crowning achievement in his career.

Seapath Launches Jones Act Leasing to Meet U.S. Domestic Transport Need

platform supply vessel — The leasing business launches with a PSV already under bareboat charter and six barges under construction (Libra)

Libra Group, a privately owned business group controlled by the Logothetis family, sees an opportunity and unmet demand in supplying Jones Act-compliant transport. Through one of its maritime subsidiaries, Seapath, the group is combining innovative maritime leasing and financing solutions with a portfolio of vessels that they plan to grow to meet the needs of the U.S. domestic transport business.

“Domestic maritime transportation is the backbone of the U.S. transportation system,” said Joshua Lubarsky, President of Seapath. “By launching our new Jones Act leasing business, Seapath is proud to support vital maritime transportation needs.”

They are launching the business with an initial transaction valued at $25 million. According to Lubarsky, the aim is to “grow to a $100 million portfolio over the coming months as we expand our offering of Jones Act vessels.”

The group starts with an order for six Jones Act-compliant barges. The barges are currently under construction. In addition, they currently have a platform supply vessel, the TM Diligence, which was acquired in September 2023 from Skansi Marine and now operates under bareboat charter to ThayerMahan, a maritime survey and data solutions provider. Built in 2002, the vessel is 256 feet (78 meters) and 650 dwt.

A U.S.-based company, Seapath was formed by Libra to address the need they perceive for critical investments in America’s maritime economy, including investments in marine industrial technologies and Jones Act vessels. In September 2023, Seapath and Pilot LNG announced a joint venture to develop a new facility, the Galveston LNG Bunker Port, that will fuel LNG-powered vessels in the greater Houston/ Galveston area of Texas with an initial investment of approximately $200 million.

The new business “builds on Libra Group’s extensive leasing capabilities across maritime and aerospace,” explains Manos Kouligkas, CEO of Libra Group. “Maritime is embedded into Libra Group’s DNA, and we are proud to help support and bolster America’s Jones Act-compliant fleet, which is critical to the U.S. economy.”

Libra Group is expanding its operations in the maritime sector. Among the group's 20 businesses, in 2022 they acquired Florida-based St. Johns Ship Building and formed a maritime subsidiary American Marine to support and strengthen the U.S. shipbuilding industry also as part of their perceived need for Jones Act-compliant vessels. The shipyard for example recently delivered a CTV which will be used to support the Vineyard offshore wind farm.

The group's other maritime holding is Lomar Shipping, a global shipping company with nearly 50 years of maritime heritage. Lomar is a leading ship-owning and management group with a diversified fleet of around 40 container vessels, bulk carriers, and chemical and product tankers.

American Waterways Video Highlights Tugboat and Barge Safety

[By: The American Waterway Operators]

The American Waterways Operators has produced a new video highlighting the tugboat, towboat and barge industry's commitment to safety and its strong record as the safest mode of freight transportation.

The two-minute video, The Tugboat, Towboat and Barge Industry: Delivering Safety on America's Waterways, explains that the industry, while moving nearly 700 million tons of cargo each year, prioritizes the safety of mariners, communities, and the environment – all while boasting the lowest injury and fatality rate among major modes of freight transportation. The video also highlights the industry's strong, longstanding safety partnership with the U.S. Coast Guard and its commitment to continuous safety improvement.

AWO President & CEO Jennifer Carpenter commented: "For decades, AWO members have demonstrated their commitment to safety leadership – integrating it into their individual safety cultures, leading industry-wide initiatives and partnering with government and private sector stakeholders to safeguard human life and protect the marine environment. The tugboat, towboat and barge industry has consistently and enthusiastically worked to improve the safety environment for mariners and the communities we serve. We look forward to sharing this video far and wide as we continue to support our members in their safety journeys and the continuous improvement of safety, security, and environmental protection."

The products and services herein described in this press release are not endorsed by The Maritime Executive.

Cargill Reports Encouraging Results from 6-Month Sail Test on Bulker

bulker with wind sails — Pyxis Ocean started testing the wing sails in August 2023 (photos courtesy of Cargill)

Cargill Ocean Transportation, the ocean shipping arm of the commodities giant, is reporting encouraging results largely in line with projections after the first six months of testing of wind-assisted propulsion aboard a Kamsarmax bulker. Data from the Pyxis Ocean (81,000 dwt) will be used according to Cargill to inform the potential scale-up across the fleet and industry as well as providing learning to further improve the design, operation, and performance of the solid sail technology.

After a partnership that began in 2019 to develop the wind technology, Cargill working with UK-based start-up BAR Technologies moved forward with the first installation of the sails on the 751-foot (229 meter) vessel completing the work in Shanghai in August 2023. The vessel built in 2017 was retrofitted with two 150 feet (37 meter) rigid sails made of a compositive material not unlike the blades for wind turbines.

During the first six months, the vessel which is owned and operated by MC Shipping, a division of Mitsubishi, has completed three voyages. It crossed the Indian, Pacific, and Atlantic oceans, sailed around Cape Horn and the Cape of Good Hope, and encountered all types of weather.

BAR Technologies and Cargill estimated the vessel would achieve an annual average saving of three tonnes of fuel per day, which equates to 11 tonnes per day of CO2 on a well-to-wake basis. This equates to roughly a 14 percent saving for the Pyxis Ocean and they report in the first six months the vessel has been within 10 percent of predictions. During optimal sailing conditions, the Pyxis Ocean achieved a saving of more than 11 tonnes per day in fuel consumption which translates to 41 tonnes per day less CO2 emitted well-to-wake or a 37 percent emissions savings.

“We are encouraged by the results and have learned a great deal about implementation wind-assisted propulsion on dry bulk vessels,” said Jan Dieleman, president of Cargill’s Ocean Transportation business.

The technology is controlled by a touch panel on the bridge and fully automated once the sails are raised. They can be folded down for safety and securing handling as well as during port arrival, departure, and operations. When deployed, sensors constantly measure the wind, and the sails self-adjust to the optimal configuration.

Captain Suraj Vaidya of the Pyxis Ocean highlights that the concept is to lower the engine power using wind energy to maintain speed at lower power and fuel consumption levels. He also recounted a unique use of the sails when they were monitoring a North Atlantic storm.

“We deployed our sails and were able to capitalize on that strong wind coming from Canada,” Captain Vaidya recalls. “We outsailed the storm. On a different ship, the voyage to the English Channel would have taken an extra day or more. With the sails, the Pyxis Ocean maintained very good speed and safely entered the English Channel just ahead of the storm.”

The early voyages have provided insight into more than just the application of the sails on a vessel, it has also highlighted broader logistical challenges in the global maritime system. Given that every port, terminal, and berth is different, the companies said their involvement is critical towards integrating Wind Assisted Propulsion (WAP) technology into the global maritime system on a wider scale. Cargill says it has worked with more than 250 ports worldwide calling the response encouraging.

“The results of the Pyxis Ocean’s first voyage with WindWings installed clearly demonstrate that wind-assisted propulsion can secure significant fuel savings and emissions reduction,” said John Cooper, BAR Technologies CEO. He explains that while the Pyxis Ocean has two WindWings, they anticipate the majority of Kamsarmax vessels will carry three wings, further increasing the fuel savings and emissions reductions by a factor of 1.5.

Cargill says it will continue the testing and experimenting of operational, technical, and commercial aspects of the Pyxis Ocean to incorporate the maximum amount of learning into the potential design of future installations before scaling up. Wind-assisted propulsion and the wing sails are just one of several steps Cargill is exploring in its effort to decarbonize operations. The group in partnership is also moving forward with the construction of some of the first methanol-fueled dry bulk carriers and inland in Europe deployed an electric pusher tug and barge.

Union Maritime Adds Wind-Assisted Propulsion to New LR2 Tankers

wind sails on tanker — Wind-assisted propulsion added to new LR2 tankers for Union Maritime (BAR Technologies)

UK-based Union Maritime has ordered the installation of rigid wing sails for two of its new build LR2 tankers putting the company at the forefront of the development of wind-assisted technology in the larger tanker sector. So far, most of the applications of wind-assisted propulsion have come in the bulker and smaller ship segments but interest in the industry remains high to find near-term technologies that will contribute to decarbonization.

The new tankers, under construction at Shanghai Waigaoqiao Shipbuilding (SWS) yard in China, will each feature three WindWings developed by BAR Technologies and are being billed as the “greenest and most efficient long-ranger tankers,” in the industry. BAR reports that the rigid sails have the potential to save up to 1.5 tonnes of fuel and around 5 tonnes of CO2 per wing per day on typical global routes.

The vessels are due for delivery in July and November 2025, according to Union Maritime as part of its shipbuilding program that has a total of six LR2 tankers on order as well as two MRs (49,000 dwt). The LR2 tankers will each be 114,000 dwt with the first two coming from China fitted each with three rigid sails. BAR explains that its WindWings operate in conjunction with a route optimization system that adjusts the rigid sails based on wind conditions, vessel speed, and course, all without compromising the vessel’s speed.

Shipping companies are looking to the available technologies and retrofit to ships to help in achieving the first stage of the required reduction in emissions. Most feel that the 30 percent target can be achieved with available technologies such as route optimization, retrofits on bows and propellers as well as adding stern ducts, and using paint and coatings to reduce hull friction. Adding wind-assisted propulsion adds another element that an increasing number of shipping companies are exploring.

BAR highlights that this order comes after its 2023 installations of the rigid sails on the bulkers Pyxis Ocean and Berge Olympus. The company has also entered into an agreement with manufacturing partners CM Energy Tech, a company associated with China Merchants Industry Holding. They will be margining the procurement and construction of WindWings and their installation throughout shipyards in Asia.

Austal USA Launches First Production Hull of 65-Foot Saildrone Series

The California-based autonomous boat company Saildrone has partnered with shipbuilder Austal to start production of its extra-large sail-powered vessel, the Surveyor.

Saildrone's orange drones are a familiar sight in the research community, and have been used on long-distance blue water operations for years. They have self-deployed from California for surveys in the Bering Sea, ventured into Antarctic and High Arctic waters, and traced out thousands of miles of trackline in the Central Pacific, without intervention or resupply. The Navy has also trialed them in the Persian Gulf and Strait of Hormuz for surveillance applications, with some success (except for a brief capture-and-abduction incident involving Iranian operatives). To date, Saildrone's devices have logged more than 1.1 million nautical miles sailed and 32,000 days of sea time.

Building on the legacy of its original 23-foot design, Saildrone has created a 65-foot model that can carry a much larger payload. The new Surveyor can support full ocean depth multibeam sonar surveys to 11,000 meters of water, longer-range surveillance, and defense and security payloads to respond to "maritime threats." It has a displacement of 15 tonnes, putting it in the same size class as a large ocean racing yacht.

Courtesy Saildrone

Surveyor fits neatly into the Pentagon's plans to buy large volumes of less-expensive, high-performance drones to compete in the Western Pacific. The first production model was launched on Monday, with Chief of Naval Operations Adm. Lisa Franchetti in attendance, and Austal plans to deliver one every six weeks on its aluminum production line.

“Using unmanned assets helps put more players on the field by freeing up manned assets for more specific and important tasks,” said Adm. Franchetti. “It’s good to see high tech industry partnering with the traditional shipbuilding industrial base to rapidly deliver cutting-edge products at scale.”

Saildrone has also reached an agreement with Austal Ltd. to look for opportunities to build its platforms in Australia for Indo-Pacific customers.

U.S. Says Gaza Maritime Aid Corridor Will Not Be Enough

When U.S. President Joe Biden delivered his State of the Union address last week, he put special emphasis on a new maritime corridor that will "enable a massive increase in the amount of humanitarian assistance getting into Gaza every day." On Wednesday, top officials from the U.S. and the EU said that Biden's high-profile maritime route will not be enough to solve the problem, and that Israel must reopen land corridors for aid convoys to pass - a politically-difficult choice for Israeli leadership.

"There is no meaningful substitute to land routes via Egypt and Jordan and entry points from Israel into Gaza for aid delivery at scale," said U.S. Secretary of State Antony Blinken, EU Crisis Management Commissioner Janez Lenarcic and UK Foreign Minister David Cameron in a joint statement. Top officials from the UN, UAE and Qatar also joined the communique.

The message echoes persistent warnings from the humanitarian aid community about the capacity and timing of the operation. The White House has dispatched U.S. Army landing craft and other assets to set up a Joint Logistics Over The Shore (JLOTS) operation in Gaza, which will turn an unimproved beach into a working pier. The mission departed this week, and the operation could be functioning within two months' time.

That may be too late, according to aid groups like Save the Children. The death toll from starvation in Gaza stands at about 30 cases and is expected to rise; the UN may formally declare a famine in the territory before the end of this week.

In Wednesday's communique, the U.S. and EU said that the maritime corridor must be part of a broader effort to move aid and commercial goods into Gaza "through all possible routes - including expanded land routes." To improve on the maritime delivery component, they said that if Israel opened the Port of Ashdod to humanitarian shipments, it would be "a welcome and significant complement" to the corridor. This would add a true deepwater port to the improvised route for the first time, but would require Israel to allow truck deliveries from Ashdod into Gaza.

Food aid access is a politically fraught issue for Israel's coalition government. Security minister Itamar Ben Gvir, advocates restricting food and medical aid deliveries to Gaza until after Hamas agrees to release its remaining Israeli hostages. In late February, after a failed truck convoy operation, Ben Gvir argued that allowing humanitarian aid to enter the Gaza Strip is "madness" until the last 130 Israeli abductees are safely returned.

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