Klaveness Combination Carriers ASA (KCC), part of Norwegian shipping company Torvald Klaveness, plans to introduce its first zero-emission vessel within 2030.
The move is part of the company’s updated environmental strategy which is targeting a 45% reduction in energy efficiency operational indicator (EEOI) by 2030 when compared to 2018 and net-zero emissions by 2050.
In the next three years, KCC will work on optimizing trading efficiency with sustainability-linked contracts, perfecting voyage efficiency, and improving the energy efficiency of its fleet. Some of the key investments in the energy efficiency space will include silicone antifouling, air lubrication systems, as well as hull-cleaning drones, shaft generators, propeller boss cap fin retrofits, solar panels, shore power, and battery hybrid systems.
To achieve its medium-term target, KCC plans to expand the use of sustainable biofuels, with an estimated 15% share of biofuels in the company’s fuel mix in 2030.
The shipowner is also planning to phase in zero-emission fuels and vessels as part of its fleet renewal strategy, ushering in its first zero-emission vessel by the need of the decade.
Specifically, the company plans to replace at least three of the oldest CABU vessels with newbuilds with a minimum 35% lower carbon footprint. The company said that all of its newbuilds delivered after 2023 will be prepared for later conversion to burning zero-emission fuels.
In its updated environmental strategy launched earlier today, KCC said that its current fleet reduces the carbon footprint per ton-mile of transported cargoes by 30-40% compared to standard vessels. This is achieved by maximizing utilization and quantity of cargo transported through switching between dry
and tanker cargoes with minimum ballast in between the dry bulk and tanker cargo.
Three years on from the release of KCC’s first Environmental Strategy in 2020, shipping is falling behind schedule on IMO’s 2030 targets as the choice and availability of new fuels, technology, and future regulatory framework remains highly uncertain, KCC said.
“Given the uncertainty surrounding our industry, our current focus is on delivering sustainable and cost-effective decarbonization through efficiency improvements while preparing for the future transition to new fuels. Our decarbonization journey has a unique starting point with our combination carriers, and we are full steam ahead to reach our revised ambitions,” KCC CEO Engebret Dahm noted.
He added that on the regulatory side, the developments were disappointingly slow, stressing that it would probably take a while before effective regulations in shipping impact the actual performance of shipowners.
Commenting on some of the lessons learned from the previous strategy the company said that with a few exceptions, most charterers are not yet ready to pay for decarbonizing ocean freight, but this will likely change.
Furthermore, KCC’s experience has shown that today’s carbon offsets are not credible and that the best approach for the company is to focus on reducing its own emissions.
The company also said that access to biofuels was more limited than expected across global ports.
Overall, KCC CEO admitted it was behind on its carbon intensity improvements for 2022, as a result of the COVID-pandemic and the situation in Ukraine on trading efficiency, stressing that its target for reaching carbon neutrality in 2030 was not realistic, and that the fuel transition is expected to take longer.