Urgent Call for Action on Ship Retrofits to Achieve IMO’s Net-Zero Emissions Goal
Everllence has raised significant concerns regarding the feasibility of the International Maritime Organization’s (IMO) 2023 Greenhouse Gas (GHG) Strategy, which aims for net-zero emissions from international shipping by 2050. The company emphasizes that achieving this ambitious goal hinges on the integration of zero- or near-zero carbon (ZNZ) fueled newbuilds alongside extensive engine retrofit conversions.
Current State of the Retrofit Market
Klaus Rasmussen, project sales director at PrimeServ Denmark, part of Everllence, highlighted the stagnation in the retrofit market. He noted that shipowners are hesitant to invest in retrofitting their vessels due to uncertainties surrounding the IMO regulations. “The retrofit market is currently in the doldrums with shipowners backing off investment until clarity arrives regarding IMO rules,” Rasmussen stated. This reluctance poses a significant threat to the attainment of the net-zero framework (NZF). He warned that without these crucial retrofits, meeting GHG targets in a timely manner will be nearly impossible.
Rasmussen stressed the urgency of scaling the conversion pathway to unlock the necessary vessel volume to meet the IMO’s strategy. Everllence’s analysis indicates that even if all newbuilds were to adopt ZNZ fuels by 2030, approximately 50 gigawatts (GW) of existing two-stroke power would still require conversion by 2050 to achieve the NZF. This figure translates to around 2,000 of the largest containerships, bulk carriers, and tankers that are capable of being converted to ZNZ-fuel operation.
The Challenge Ahead
Currently, the global fleet of vessels exceeding 5,000 gross tonnage (GT) is powered by 30,000 two-stroke engines, with 5,300 of these engines identified as potentially convertible to ZNZ-fuel operation. However, the ongoing uncertainty regarding regulatory frameworks has led to a freeze in commitment from shipowners. “Uncertainty around the rules has frozen commitment,” Rasmussen explained. This has resulted in shipowners opting for interim efficiency upgrades rather than committing to full-fuel conversions. Such hesitance could lead to costly capacity bottlenecks once the NZF regulations are finally implemented.
Rasmussen’s call to action underscores the critical need for immediate steps to facilitate retrofitting. Without decisive action, the maritime industry risks falling short of the ambitious GHG reduction targets set forth by the IMO. The path to achieving net-zero emissions is fraught with challenges, but proactive measures in retrofitting could pave the way for a more sustainable future in international shipping.
