Stena stands up for older ships

AGE IS NO BARRIER

DISCRIMINATION • ALTERNATIVE FUELS ARE AT THE TOP OF THE MARITIME AGENDA BUT, SAY STENA BULK AND CONCORDIA MARITIME, OLDER SHIPS CANNOT BE LEFT OUT OF THE TRANSITION

BACK IN THE 1990s, in the wake of the US Oil Pollution Act and the high-profile losses of tankers such as Exxon Valdez, Sea Empress, Braer and others, there was a lot of talk about the phenomenon of ‘substandard ships’ and what could be done about it. Keen to make a good impression, several major tanker charterers imposed apparently arbitrary age limits on the tankers they were prepared to hire.

The result of that was the development of a two-tier market, much to the chagrin of those owners who had spent a lot of time and money in keeping their older ships up to the standards expected. Nonetheless, an improvement in safety did result.

Those tankers built in the shadow of OPA 90 are now approaching the end of their working lives and, with attention moving on to reducing the environmental impact of global shipping activity, through increasingly strict emissions controls and – eventually – complete decarbonisation of the maritime fuel chain, a similar situation is in danger of developing.

But, argue Erik Hånell, CEO of Stena Bulk, and Kim Ullman, CEO of Concordia Maritime, such thinking is not only mistaken, it also actively jeopardises efforts to achieve the decarbonisation targets. Owners around the world are looking at a range of options when building new tonnage but, they say, decarbonisation of the industry as a whole will not be possible unless owners seize the opportunities to improve the environmental performance of existing tonnage. What concerns them is that, if older vessels are going to find employment harder to come by, or if they generate substantially lower income, then owners will not have the funds to improve their environmental performance.

ALREADY ON THE JOB “Stena is working hard on minimising greenhouse gas emissions from our operations – and just like many of our competitors, we are making significant progress,” says Hånell. “This relates both to designing and building new generations of energy-efficient vessels, but also innovations and enhancements to existing tonnage – which are essential to reach the 2050 reduction targets. But the narrowminded age discrimination of oil tankers is jeopardising the entire industry’s global CO² reduction efforts.”

Developing and implementing new technologies is an expensive undertaking and, Hånell says, “unnecessary age restrictions are, without doubt, sub-optimising the willingness to make the necessary financial commitments. Who is willing to invest in a sustainable retrofitting solution if oil companies put unnecessary limitations on tonnage?”

Stena Bulk and Concordia see governmental incentives, green finance and investor pressure as enablers that can put necessary activities in motion. Co-ordinating industry’s efforts to reduce CO² emissions would make research and development of the most promising solutions, such as hydrogen and fuel cells, more cost-efficient.

The owners also note that a number of different fossil-free fuels are being evaluated and they are, to a high degree, compatible with existing equipment aboard tankers. “Stena’s biofuel tests have proved that realistic alternatives to diesel exist,” Hånell says. “Even if they take limited steps towards a major legal requirement, they demonstrate a positive intention and can become steppingstones towards fossil-free shipping. The main obstacles are availability, standardisation and price.”

STEPS TAKEN AND PLANNED Stena Bulk has, as Hånell explains, already made strides towards decarbonising its shipping activity. During the second quarter of 2020 it carried out a trial using biofuel derived entirely from waste. A ten-day transatlantic voyage by the 2016-built MR tanker Stena Immortal was fuelled completely by this biofuel and proved the technical and operational feasibility of using biofuel for regular tanker operations, the company says. It then introduced a range of low-carbon options for its customers, based on an offsetting programme across its fleet. “This allows customers to make use of low-carbon shipping options regardless of fuel availability on the specific route. It also guarantees that operation is performed without any disturbance to the shipment,” Stena Bulk said at the time.

In September 2020 Stena Bulk completed a successful sea trial using a new bio-fuel oil produced by ExxonMobil, the first such fuel to be made commercially available. “The development of ExxonMobil’s biofuel is an important step towards a broader commercial use of low-carbon fuels and we

were happy to be part of the sea trial, which proved to be very successful,” Hånell said at the time. “The fuel performed very well and fitted seamlessly into our technical and commercial operation without the need for engine modifications or additional procedures, while contributing to the development of fuel that significantly reduces CO² emissions.”

Proman Stena Bulk, a joint venture between Stena Bulk and Proman Shipping, has also ordered three methanol-fuelled 49,900-dwt newbuildings. They will feature the new MAN dual-fuel engines that have a revolutionary water and fuel emulsion technology to significantly reduce NOx emissions without the need for catalytic converters. In addition, the ships will also feature the latest energy efficiency technology, including continually controlled combustion, optimised tuning, redesigned and aerodynamic hull lines, and an energy shaft generator, reducing fuel consumption and helping to meet strict emissions criteria.

Speaking about the new order, Hånell said: “It is in Stena Bulk´s objectives to contribute to making the shipping industry more sustainable. This joint venture is taking us in that direction with a partner whom we share many values that we believe will develop the shipping industry with new features driving improved performance and efficiency.”

HOW TO GET THERE Hånell and Ullman agree that advances in vessel efficiency have moved fast and have left current regulations and restrictions behind. “New rules and regulations must be introduced globally to create a level playing field,” they say. “Domestic or regional requirements are steep thresholds for global trading. All of us are familiar with IMO’s decarbonisation ambitions. Now, we need to know how they will be measured. By ship, by company, by country or some other way?”

Stena Bulk also agrees with those who say that the decarbonisation process will require widespread collaboration, something that has been seen in many of the alternative fuel projects recently announced. As Hånell says, “We cannot manage this huge transition by ourselves. The challenge goes way beyond adapting ships for new fuels and technologies. Reaching stringent emission targets requires cooperation between all stakeholders: authorities, finance institutions, shipping companies and the fuel industry.”

Hånell and Ullman have a call to action, saying: “Age restrictions belong to the past. Our industry must move away from its legacy and traditional business model; moving the focus to ships that are built to last through several cycles.”

They have some suggestions to offer, too: “Start by removing obstacles that go against the sustainability trend, such as age discrimination, that prevent a greener development. Then, let us replace a fragmented regulatory and technological approach with clear global targets, industrial cooperation and incentives that put the propellers in motion.

“Greater things than our individual businesses and their profitability are at stake. In the long run, mutual efforts to turn the dangerous tide of global warming will be beneficial both for our planet and ourselves,” they conclude. www.concordiamaritime.com www.stenabulk.com

ERIK HÅNELL (OPPOSITE) AND KIM ULLMAN (ABOVE)

AGREE THT UNNECESSARY AGE RESTRICTIONS RISK

DISINCENTIVISING TANKER OPERATORS FROM INVESTING