Stolt's 2030 strategy melds fleet renewal, biofuel adoption

"Fleet renewal over the next decade will have a significant impact and already has," says Stolt-Nielsen Group ESG manager Bharat Nayar. "Fuel efficiency and environmentally sustainable ship technology have advanced considerably in the last five to 10 years, so our latest vessels are positively affecting our AER." Recent deliveries include several advanced super-segregator vessels built at Hudong Zhonghua Shipbuilding, and there are six 38,000-dwt super-segregator vessels on order at China’s Wuhu Xinlian Shipbuilding, scheduled for delivery between 2026 and 2028.

The ambition is to achieve a 50% reduction in AER by 2030, leaving a 14% gap to bridge through a combination of fleet renewal, biofuel deployment and energy efficiency measures. This strategic approach has already yielded significant results across the fleet.

"In Europe, all of Stolt Tankers’ inland barges were running on biofuel in December," notes Capt Nayar, adding Stolt is continuing to trial biofuel for its deepsea fleet.

As part of the energy efficiency measures being implemented across the fleet, graphene coating technology has been applied to 25 vessel propellers. This initiative has yielded promising results, achieving efficiency gains of 1- 2% and showing minimal coating deterioration during routine inspections.

In evaluating emerging technologies, Capt Nayar says the company has taken a measured approach based on rigorous feasibility studies. Wind-assisted propulsion, for instance, was deemed unsuitable for the company’s operational profile, with vessels spending approximately 45% of their time in port, resulting in negative return on investment calculations.

From a regulatory perspective, Capt Nayar acknowledges reporting Scope 3 emissions presents specific challenges, particularly in categories 1 and 2, which cover capital goods and purchased services. "Many suppliers globally, including those in Europe, are not yet measuring their carbon emissions," he explained. This lack of measurement complicates the reporting process, as companies often rely on data from their suppliers to accurately account for these emissions.

To tackle this issue, the company has adopted a hybrid approach that primarily employs spend-based methodologies aligned with the Greenhouse Gas Protocol. This method calculates emissions based on the financial value of purchased goods and services, using emissions factors derived from industry averages. While this approach simplifies data collection, it may not provide the most accurate emissions estimates for specific contexts. The company supplements this method with actual emissions data where available to enhance accuracy.