Speaking at the Capital Link Operational Excellence in Shipping Forum, ABS Chairman, President and CEO, Christopher J. Wiernicki said that: ‘Environmental regulations are creating a new language in shipping: its CO2 emissions per ton-mile.’
Wiernicki argued that the emphasis on emissions – and the new technologies that are being developed to meet the challenge – will ‘drive commercial decisions which will shape the way we manage risk now more than ever’.
Wiernicki also discussed how meeting the decarbonisation challenge will require a multiplicity of technologies, fuel types and energy sources.
‘When you look at the possible answers to our challenges in meeting the IMO’s decarbonisation targets for 2030 and 2050,’ said Wiernicki, ‘there is no single solution. It's going to require a hybrid solution through a combination of alternate fuels, new technologies and gains in operational efficiencies.
‘The world will no longer be one-dimensional; rather, it will be multi-dimensional with different fuel pathways and different optimization models. Quite frankly, the challenge will be determining the right combination for any given ship or even for a shipping company. All of this is being impacted by charter agreements, trade routes, policy, owners’ risk appetites and commercial profiles.’
While alternative fuels will ultimately have a significant role in achieving the greenhouse gas emissions reduction outcomes, maintained Wiernicki, smaller short-term gains will be available sooner in areas related to hull design and greater operational efficiencies.
‘Technology, readiness, timelines and commercial relationships will drive our decarbonisation journey,’ continued Wiernicki. ‘New designs will be viewed in terms of future-proofing, bridging and transition potential based on various fuel pathways. Alternate fuels and technologies must be evaluated in terms of impact, scalability, suitability and potential for carbon reduction, not just in the combustion cycle, but over the entire well to wake value chain.’