A group of influential OSV industry stakeholders has released a white paper that aims to accelerate reductions in CO2 emissions in the offshore sector
When it comes to tackling decarbonisation in the maritime industry, “every sector has its unique technologies, challenges and work scopes,” says Maersk Supply Service chief operating officer Mark Handin. While numerous maritime collaborations are underway on pilot projects aimed at accelerating CO2 and greenhouse gas emission reductions from oceangoing ships, there are “very little specifically targeted at the OSV sector,” Mr Handin tells OSJ.
Taking inspiration from the Maersk-Mc-Kinney Møller Centre for Zero-Carbon Shipping, explains Mr Handin, Maersk Supply Service joined with a group of five other influential stakeholders in the OSV industry last year to form The Forum for Decarbonising the OSV Industry. Other members of the group include one of the largest class societies in the offshore sector, ABS, and four of the world’s largest energy producers and charterers: Shell; TotalEnergies; Chevron; and Equinor. The driver behind the forum is the need for vessel owners and operators to take a collective and proactive approach to address the specific challenges of decarbonising the OSV sector.
OSVs will play an integral role in Equinor’s plans to decarbonise its offshore operations, Morten Sundt, the company’s manager for marine operations, logistics and emergency response told OSJ in March.
Other OSV industry stakeholders are encouraged to join the forum, which has just disclosed details of its first white paper, ‘10 Principles to Decarbonise the OSV industry’, to OSJ. This white paper is “meant as an inspiration to others,” says Mr Handin. By sharing its ideas, the forum hopes to get “some of the key stakeholders to march in the same direction,” he says, adding, “We’re in this together.”
The white paper wants to speed the transition to a greener, carbon-neutral OSV industry by outlining 10 agreed-upon principles to reduce CO2 emissions and fuel consumption in current offshore vessel operational practices.
Breaking down the Principles
The 10 principles fall into three categories: Sourcing criteria; Vessel optimisation; and Reporting. Sourcing criteria covers Principles 1 and 2, which outline how an operator can be a catalyst of decarbonisation by explicitly addressing the requirements regarding efficiency of operations and related emissions in its tenders. Furthermore, through contracts, the operator should be willing to commit to recognising documented emission reductions.
“The white paper wants to speed the transition to a greener, carbon-neutral OSV industry”
A decarbonisation conundrum for the OSV industry is that vessel owners make investment decisions regarding vessel energy efficiency, such as battery installations, but they do not directly benefit financially from the upgrades. Instead, as charterers, operators reap those benefits through reduced fuel costs and from reduced Scope 3 emissions. Scope 3 emissions incorporate both upstream emissions in producing your product and downstream emissions-producing activities generated in consuming your product. Marine transportation, which is not owned by the operator, falls under Scope 3 emissions.
The principles of vessel optimisation
Key areas in Vessel optimisation covered in Principles 3 through 8 are behaviour and culture, fuel, technical upgrades and shore power and offshore charging. Behaviour and culture address crew engagement on taking active measures to reduce emissions. Charterers, meanwhile, have to take into account how their instructions for vessel movements, sailing and speed requirements will impact emissions. Owners and operators should collaborate to make ‘hurry up and wait’ logistics a thing of the past.
“We recognise there is another side to all this,” says Mr Handin, “and that some of these [efforts] cost money. In a perfect world, there has to be some kind of commitment of behalf of operators to try and incentivise owners one way or another, whether it is through longer-term commitments, so owners can recoup some of that investment over time through day rate, or some other incentives.”
To shrink its own carbon footprint, Maersk is taking an ‘all steps matter approach,’ investing in new crew decision-support tools, training, technologies, equipment and technology upgrades. “We’re looking at how we can operate our vessels in the most carbon-efficient manner,” says Mr Handin.
“There has to be some kind of commitment from operators to try and incentivise owners”
“Operators are more focused on reducing their Scope 3 emissions, so if we can help them achieve that through lower emissions then we are adding value.”
Maersk’s approach to CO2-efficient operations includes an industry-first battery refit on the M-class anchor-handling tug supply (AHTS) vessel Maersk Minder. “We believe we are the first owner to install a hybrid-battery solution in an anchor handler,” notes Mr Handin. Once it completes the hybrid-battery refit of Maersk Minder in June, Maersk will assess the technology before undertaking further refits, which will most likely occur in 2023.
Of course, while hybrid-battery upgrades are viable for Maersk’s more modern, diesel-electric-powered fleet, they are not the best option for conventionally powered OSVs. In this case, Maersk is adding variable frequency drives (VFD) that distribute the right amount of energy for various pieces of machinery. One VFD refit has been completed and another OSV is scheduled to be upgraded in June.
On the alternative-fuel front, Maersk has conducted biofuel trials using HVO, notes Mr Handin, and is “gearing up for a few more projects with clients interested in co-operating with us” in which biofuels will account for some percentage of the fuel consumption. “This helps us learn and grow in the green space, and it helps the client ultimately with their Scope 3 emissions.”
“The real step change is going to be the zero-carbon OSV”
Mr Handin says an onboard decision-support system to provide captains, chief engineers, crew and shoreside personnel with real-time information on engine performance, power load configuration and emissions reduction strategies “is a very powerful tool”.
And last year, Maersk launched a new venture, Stillstrøm, to market its offshore charging buoy concept, which Mr Handin describes as “bringing shore power offshore”. The buoy, which can be located near an offshore windfarm or oil and gas platform, provides safe mooring offshore and the ability to recharge an OSV’s batteries without returning to shore.
The energy transition is not only impacting how Maersk operates its vessels, but also the markets it operates in; it recently ordered its first wind turbine installation vessel (WTIV) for the US offshore wind market.
Reporting
Beyond Vessel optimisation, the final two Principles, 9 and 10, are covered in Reporting. Transparency is underpinned by sharing fleet performance data with charterers, but gathering data and reporting on emissions can be tricky without data collection standards to allow ‘apple-to-apple’ comparisons across the oil and gas industry. Without industry-wide standards, it can be difficult to track meaningful progress. Additionally, the process of collecting data needs to be automated to eliminate human error and reduce the time spent in compiling it.
Data standardisation will also be an important building block in compiling meaningful ESG reports.
The white paper does not consider the design of the next generation, zero-carbon OSV, nor address the topic of carbon credits in the OSV industry.
Mr Handin says: “Batteries and frequency drives are big steps, but what will the future OSV look like? The real step change is going to be the zero-carbon OSV. Unfortunately, we are not there yet.” Additionally, the Danish OSV owner continues to track with some interest the progress of its parent organisation, AP Moller-Maersk, in the development of a fleet of new methanol, dual-fuel-powered container ships. The first of these, a feeder container vessel, will join the Maersk fleet in 2023.
While the market is not in a position to support newbuilds nor is Maersk contemplating ordering any, Mr Handin concludes: “It is never too soon to dream and inspire yourself because one day [newbuilds] will be the answer.”
The 10 Principles in brief
Principle 1 |
Put it in writing: Tenders spell out requirements regarding efficiency of operations and related emissions. |
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Principle 2 |
Commit to CO2 reductions: Charterer contractually commits to recognise documented emissions reductions. |
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Principle 3 |
Green culture: OSV management and crew trained in operational emissions mitigation. |
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Principle 4 |
Just-in-time: Collaboration between OSV owner and charterer to reduce ‘hurry up and wait’ logistics. |
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Principle 5 |
Green fuels: Use of biofuel and other low-carbon fuels to reduce OSV emissions. |
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Principle 6 |
Fleet upgrades: OSV owners should reduce emissions through continuous upgrades to their existing fleet. |
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Principle 7 |
Financial reward: Charterers support GHG-reducing technical upgrades directly or indirectly through contract terms. |
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Principle 8 |
Plug it in: OSVs should be equipped for shore power or offshore charging. |
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Principle 9 |
Get digital: OSV owners should upgrade to support automated vessel performance reporting and emissions data. |
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Principle 10 |
Standardise data: Performance data should be transparent and shared in a common format. |
Mr Handin will disclose further details on the forum’s efforts to accelerate decarbonisation in the OSV industry at the Annual Offshore Support Journal Conference, Awards & Exhibition, 15-16 June 2022 in London. To register to attend, use this link.
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