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Mapping your ship’s decarbonisation strategy in the virtual world
ABS executives discuss how powerful new simulation tools can build decarbonisation strategies for newbuilds and existing ships, mitigating the risk of stranded assets
Any investment decisions in either newbuilds or retrofits under consideration by shipowners must be viewed through the prism of their decarbonisation journey, using the latest IMO environmental regulations as frameworks. These decisions will have to consider the vessel’s service life, its operational profile, the current and forecast bunkering infrastructure on its route, availability and pricing of low- and zero-carbon fuels, potential carbon taxes and other government policies, and the technology readiness level of the available emissions-reduction marine equipment.
Needless to say, looking out 5 to 10 to 25 years in a ship’s future can be a daunting task. One miscalculation could leave a shipowner with a single stranded asset or, far worse, a fleet of white elephants — a competitive and commercial disaster.
One vital tool shipowners can use to map out their vessel’s or fleet’s decarbonisation journey are new powerful simulation tools, say executives from the class society ABS. On a recent visit to Singapore, ABS vice president and Global Simulation Center head Dr Gu Hai and ABS vice president of global sustainability Panos Koutsourakis discussed the challenges shipowners face when developing their decarbonisation strategies and how simulation can be an important decision-support tool in mapping out plans.
Simulating ships, fleets and Green Ship Corridors
“Our simulation covers across the value chain,” explained Dr Gu Hai. “This means we can build a digital ship model, with details including the ship’s power system. In the case of an OSV, for example, this might be hybrid power, with a dual-fuel, diesel-electric system. Additionally, we can build models using different concepts. By incorporating a specific operational profile, we can then evaluate the performance and compare these different concepts to help owners or charterers make decisions.”
Dr Gu Hai said these same data-driven or physics-based simulation support tools can be extended beyond just a single vessel. “We can simulate the operation with a fleet or provide an even bigger picture — we can build a model of the entire ecosystem of logistics called a Green Shipping Corridor. This involves different stakeholders. Each stakeholder plays their role and there are different dynamics between them. It’s highly nonlinear, and it’s very complicated.”
There are some 20 initiatives underway globally to develop Green Shipping Corridors that would connect some of the world’s largest ports, including Singapore, using low- and zero-emissions ships. The successful development of these corridors by 2030 requires intensive public and private co-operation on new fuels, technologies, infrastructure, business models, policies, rules and regulations.
Singapore is home to one of the five global ABS Sustainability Centers, which are supporting marine and offshore vessel owners and operators with comprehensive decarbonisation and sustainability solutions. Additionally, ABS launched the ABS Global Simulation Center in Singapore three years ago. As one of the world’s busiest transhipment hubs and bunkering ports, the city-state is a well-placed home for the centre.
In addition, Singapore shipowners have been extremely active in investing in green newbuilds. ABS South Pacific region vice president, global business development Pier Carazzai, said, “Singapore is basically dominating the orderbook, with 40% of the new orders built to ABS class.”
ABS reported an orderbook of 121 vessels were being built to its class in the region in 2022.
At the ABS Global Simulation Center, ABS engineers can cost-effectively build a sophisticated virtual model of a ship to allow shipowners to estimate and reduce the cost of a newbuild or retrofit a vessel to keep it compliant with IMO’s Energy Efficiency for an Existing Ship Index (EEXI) or the Carbon Intensity Indicator (CII) regulations.
In addressing this, Dr Gu Hai said, “I want my vessel for its entire service life to comply with CII and other regulations. What kind of technology should I use and when should I use it, while at the same time, minimising my capex and opex? That is a problem we are trying to solve. We work together on models of different combinations, different concepts, and evaluate the different concepts. That’s a typical use case for simulation to support decarbonisation.”
What is the next fuel?
Mr Koutsourakis, who works closely with Dr Gu Hai, said some of the questions that come up with clients are ‘What is the next fuel?’ and ‘What is the best option?’ “My response to them is there is not a single answer,” he said. Mr Koutsourakis said he is not trying to be evasive but rather, the decision is based on several factors. “It depends on the type of vessel, the trading pattern and operating profile of the vessel.”
He emphasised that shipping is facing a multi-fuel future. “We will never have a single fuel like we had in the past, like HFO, and let’s say as an alternative, MDO. In the future, there are going to be many different fuels,” he said.
Methanol as an option
“Methanol is not a non-carbon fuel, but there is higher potential to have increased production of green methanol,” he said. “By using green methanol, you can reduce the emissions on a lifecycle well-to-wake approach. This might be the first step,” said Mr Koutsourakis.
Ticking off some of the advantages of methanol, Mr Koutsourakis said, “It requires less capex because it is less complex and easier for the crew to handle.”
He noted discussions are underway with clients regarding ammonia as a fuel and anticipated the first vessels might make their debut in 2025 or 2026. He said ammonia is a non-carbon fuel, but there are other issues, including potential environmental risks and hazards to the crew.
“There are some people discussing hydrogen, but we do not see hydrogen as a primary fuel in the short-to mid- term” As a super-cryogenic liquid, hydrogen requires special handling and expensive materials for transport, storage and handling. He does see a role for hydrogen, however, in connection with the production of synthetic fuels. Green hydrogen, for example, produced via electrolysis and renewable energy can be combined with captured CO2 to produce e-methanol. “This is a case,” said Mr Koutsourakis.
Riviera Maritime Media’s Maritime Decarbonisation Conference, Asia will be held 19-21 April 2023 in Singapore. Use this link for further information and to register your interest
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