Green marine industry can lead the new wave

In the new year shipping companies will be obliged to introduce fuel-efficient measures and reduce carbon emissions. This has spurred innovation as well as cutting costs.

The issue of carbon emissions is crucial for ports such as Jebel Ali, above, which is among the world's top 10 busiest ports. Courtesy Maersk Line UAE

New global regulations on greenhouse gas emissions in the maritime industry are due to come into effect in January, forcing shipping firms and port operators to consider adopting fuel-efficient technology.

Meanwhile, The National reported the global shipping industry is now facing controversial emissions charges similar to those pursuing global airlines as the European Commission draws up new environmental regulations. Such a move would increase shipping costs at a time when the industry is facing difficulties.

The issue of carbon emissions is crucial for the UAE, the Middle East's main shipping centre, home to Jebel Ali Port - ranking among the world's top 10 busiest ports - and a new hub, Khalifa Port, which is now operational.

The International Maritime Office (IMO) regulations - the first worldwide, legally binding agreements to curb the emissions of any industry - have huge implications for sea freight, which moves more than 90 per cent of the world's trade.

From January, all vessels above 400 gross tonnes will need an efficiency management plan, while an energy efficiency design index will be applied to the design of a range of new craft. Ships built between 2015 and 2019 will have to rate 10 per cent higher for energy efficiency than vessels built before then, with greater improvements phased in over following years.

The result should be a cut in yearly carbon emissions of about 150 million tonnes by 2020. By 2030, the reduction could more than double, while average annual fuel cost savings for the world shipping fleet could top US$200 billion (Dh734.62bn), some industry analysts believe.

To comply with the new rules, ship owners can choose "slow-steaming" - sailing at reduced speeds to cut fuel costs and reduce emissions. This practice has gained favour during the economic slowdown but operators are unlikely to adopt it over the long term because of customer demands for speedy delivery.

The other option is to retro-fit new technology, not only because it is greener but also because it saves costs.

Replacing diesel, which has a high sulphur content, with liquid natural gas (LNG) is the most realistic long-term solution for the industry. LNG reduces emissions by 10 per cent but can also cut fuel costs by about 30 per cent, studies show. The cost of installing gas engines and fuel tank systems can be made back in savings within three to five years.

Because of its production of the hydrocarbon, the Arabian Gulf is well positioned to take a lead on the adoption of LNG, probably initially for tugs and oil and gas services vessels. Any eventual move on a global scale will require close coordination between ship owners, who need to install new engines, and major ports, which would need to build and supply refuelling depots.

Energy saving designs can also help to meet the new standards. To show how far the industry can go on cutting emissions, Rolls-Royce has built the Environship, bringing together several technologies, including a lean-burn gas engine, hydrodynamic hull design, a high-efficiency integrated rudder and propeller system and a hybrid shaft generator to produce more efficient on-board electricity.

This model, which has already been ordered by Norwegian companies, can slash nitrous oxide emissions by 90 per cent and carbon dioxide emissions by up to 40 per cent compared with similar-sized diesel-powered vessels.

Interestingly, some shipping companies are revisiting and adapting traditional technologies to suit the modern age.

For example, B9 Shipping in Belfast is spearheading the idea of automated sails to power cargo ships. Similarly, the US company Enercon has updated the Flettner rotor, first developed in the 1920s, using tall chimney-like vertical spinning rotors to gain aerodynamic lift from wind power.

The IMO regulations may be a short-term irritant to the marine industry but they have sparked plenty of creative thinking.

This is an opportunity for shipping to show other sectors the way, not only by going green but also by proving it is economically beneficial.

Ravi K is the general manager of Rolls-Royce Marine Middle East, a provider of power systems and services for use on land, at sea and in the air