Navigator Gas CEO calls for implementation of carbon levy

Navigator Gas chief executive Mads Peter Zacho called for the implementation of a carbon levy on bunker fuel to support and speed the transition to low- and zero-carbon fuels.

Providing the keynote presentation at ABS Sustainability Summit, Mr Zacho said, “Climate change is not slowing down; it is accelerating, which means we need to move faster in the shipping industry.”

A leading owner and operator of handysize liquefied gas carriers, Navigator Gas is leaning into the energy transition, which Mr Zacho sees as a business opportunity. Set against the background of the implementation of FuelEU Maritime, he outlined several investments Navigator Gas was making in energy-saving technologies to improve the energy efficiency of its fleet and support the transport of low- and zero-carbon fuels.

In August, the Big board-listed owner ordered two ethane dual fuel-powered 48,500-m³ ethylene gas carriers from China for delivery in 2027. With the capability of transporting the most complex petrochemical gases, such as ethylene and ethane, to LPG and clean ammonia, the two newbuilds will be retrofit-ready to operate on ammonia and be fitted with carbon capture technology. Navigator Gas holds options to build two additional ships.

“What IMO will bring after MEPC 82 next month and MEPC 83 next spring will be incredibly exciting,” observed Mr Zacho. “I hope for an ambitious global carbon price levied on shipping, which is something unexpected from an owner – but the cost will move down the supply chain as it should. The impact to the consumer for green shipping is only expected to be 1% to 2% more,” he added.

In 2023, Navigator Gas joined Yara Growth Ventures, a subsidiary of Yara International,  in acquiring a 14.5% interest in Norway’s Azane Fuel Solutions, a provider of ammonia bunkering solutions.

The ABS Sustainability Summit was held on 2 September, the day prior to the start of the maritime industry’s largest trade fair, SMM 2024 in Hamburg.