OSV owners are supporting the carbon-neutrality ambitions of oil operators through investments in battery-hybrid solutions, alternative fuel usage and optimised logistics
Equinor has made no secret of its ambitions to meet net-zero carbon targets by 2050, and carbon-efficient OSV operations are vital to its environmental agenda. Biofuels, batteries and behaviour are some of the steppingstones on the pathway to the Norwegian energy company’s decarbonisation goal.
In March, it laid out its sustainability roadmap to shareholders in its Energy Transition Plan. Reduced methane emissions, electrification of its offshore oil and gas platforms, increasing use of shore power, and larger investments in renewables, ammonia, hydrogen and carbon capture are all on the table.
“Strong cashflow from a highly focused, carbon-efficient oil and gas business will fund its transformation,” claimed Equinor chairman of the board Jon Erik Reinhardsen and chief executive and president Anders Opedal in the opening of the report.
Not overlooked in its Energy Transition Plan is the role OSVs can play on the journey through improved fuel consumption, reduced emissions, optimised logistics and use of alternative fuels. As one of the world’s largest charterers of tankers and OSVs — it might have 175 vessels fixed globally at any one time — Equinor is looking to OSV owners to support its carbon emissions reductions. Equinor wants to halve its maritime emissions in Norway by 2030 and global maritime emissions by 2050.
Testing biofuel
“To reach our ambition of becoming a net-zero energy company by 2050, we’re constantly working with various technologies that can help reduce the carbon emissions from our operations. Using biofuel instead of ordinary marine distillate can reduce cargo ship emissions by 65-90 %,” said Equinor in a social media post in May.
Equinor conducted its first test of advanced biofuel on the platform supply vessel (PSV) Juanita at the Mongstad supply base. The test trial was a collaboration carried out in conjunction with the vessel’s engine manufacturer Wärtsilä, fuel supplier, Ugland Supplier AS and experts in exhaust analysis, according to Equinor. Built to DNV class and fitted with a 678-kWh Corvus Orcas energy storage system, the hybrid-battery-powered, Salt 100 PSV design Juanita has been under charter to Equinor since 2014. Last year, the Norwegian energy company exercised its first one-year option under its contract extending its charter to mid-June 2022. The contract contains a further two one-year options. Juanita is one of 19 hybrid-battery OSVs under charter to Equinor.
Like Shell, Equinor has deep experience in alternative fuels, having been a pioneer in operating LNG dual-fuel vessels in the offshore oil and gas sector, starting with Viking Energy almost 20 years ago.
“Equinor has rewarded first-movers in zero-emissions fuel with long-term charters”
In 2015, Shell chartered Harvey Energy, the first in a series of LNG dual-fuelled PSVs built to ABS class, from Louisiana-based Harvey Gulf International Marine (HGIM) for operation in the US Gulf of Mexico. The addition of a battery-hybrid solution and a pilot project involving the use of renewable LNG have progressed these PSVs towards carbon-neutrality.
In March, Equinor fixed Eidesvik Offshore’s LNG-hybrid-electric Viking Prince for six months, with options, following the PSV’s battery and shore-power upgrade in January.
Eidesvik and Wärtsilä signed a co-operation agreement aimed at converting an OSV to operate with ammonia-fuelled combustion engines, including fuel supply and safety system. The Apollo project will be the first of its kind in the world and has a provisional completion target of 2024.
Rewarding behaviour
Equinor has rewarded first-movers in zero-emissions fuel with long-term charters. In its latest move, Equinor awarded a five-year charter to Remøy Shipping for the LNG hybrid-electric PSV Rem Eir; this includes the potential to convert the vessel to burn ammonia. Rem Shipping signed a collaborative deal with Wärtsilä last year to jointly develop zero-emissions power solutions for the PSV. The long-term charter commences 28 May 2022 in direct continuation of the vessel’s current contract, with additional three-by-one-year options.
“This new contract will contribute to Equinor’s goal to reduce carbon emission from maritime operations by 50% within 2030 and includes a potential conversion of Rem Eir’s machinery to operate on ammonia. As such, the close co-operation between Equinor, Remøy Shipping and Wärtsilä [will] pave the way for further developing new zero-emission technologies for offshore vessels,” said Remøy Shipping chief executive Karl-Johan Bakken.
Eidesvik entered into a memorandum of understanding with Aker BP and Alma, a venture under Clara Venture Labs, to explore opportunities for retrofit installations of Alma’s ammonia fuel-cell technology on two OSVs, Eidesvik’s Viking Lady and Aker BP-owned NS Frayja, currently under Eidesvik’s management.
“Using biofuel instead of ordinary marine distillate can reduce cargo ship emissions by 65-90 %”
The two parties are also addressing ‘hurry-up-and-wait’ logistics. Eidesvik and Aker BP are co-operating on optimised route planning on Viking Lady requiring “fewer sailings and allowing for reduced transit speed. The result is substantial reductions in both the total consumption of fuel and in harmful air emissions,” says Eidesvik Offshore.
Rewarding behaviours and co-operative efforts such as this are highlighted in a white paper released by The Forum for Decarbonising the OSV Industry. Formed last year, the Forum includes Equinor, Shell, TotalEnergies, and Chevron, as well as Danish OSV owner Maersk Supply Service and class society ABS. The idea behind the collaborative is simple but challenging: accelerate the transition to carbon neutrality in the offshore energy sector.
The Forum released a white paper, 10 Principles to Decarbonise the OSV Industry, with the ambition of accelerating carbon-neutrality in the OSV market.
The future OSV
While the white paper does not explore future OSV design, a white paper released separately at the OTC 2022 Conference in Houston by ABS does. In its Insights into Future OSV Designs and Operations, ABS envisions the OSV of the future as a carbon neutral, highly connected and automated platform, configured to provide clear operational visibility and the ability to track vessels, cargo, equipment and people around the clock.
Noting the class society’s work on HGIM’s tri-fuel PSVs, ABS vice president global offshore Matt Tremblay, said: “We understand how the evolution of these vessels is only just beginning and there is an exciting future ahead: connected, sustainable, increasingly autonomous, multi-functional and highly capable of adapting to serve a variety of use cases.”
Equipped with larger accommodation spaces, heavy-lift cranes, helidecks and streamlined hull forms, these future-flexible OSVs may serve offshore oil and gas, offshore wind, space missions (launches and recoveries), carbon capture (transport) and subsea mining.
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