Shipowners are currently facing unprecedented challenges due to the IMO’s target of reducing carbon dioxide emissions by at least -40% by 2030 and -70% by 2050.
A number of different approaches are being taken in the market to meet the significant reduction of carbon dioxide emissions. Most recently, we have seen the introduction of the new multi-fuel electric LNG carrier developed by Hudong-Zhonghua Shipbuilding, Wartsila and ABS. The LNG carrier is set to offer a low-carbon footprint as well as low operating expenses. This will be achieved by offering a compact, electrified, integrated and efficient propulsion power solution. The LNG carrier is said to be highly flexible (it will rely on multiple bunker fuels as well as battery power) and should be able to integrate new technologies, in order to stay ahead of the requirements of the IMO’s Carbon Intensity Indicator (which comes into force from January 2023). Adaptability is a strong selling point, where companies do not want to find that their newbuild may no longer comply with regulations introduced further down the line.
It will be interesting to see how this technology develops. Regardless, cross-sector collaboration is needed between governments and international regulators to provide adequate policy frameworks to assist the industry in meeting the regulations.