Without consensus, the maritime industry is not prepared for net zero

When it comes to maritime decarbonisation, N2 Tankers’ commercial director, Madhu Vadakkepat, does not pull any punches. Given all the commercial, operational and technical uncertainties, he sees the delay in the adoption of the IMO Net-Zero Framework as a positive.

“We are still not prepared,” stated Captain Vadakkepat, highlighting the lack of a clear consensus of government policies and the need for comprehensive training and certification of seafarers, particularly regarding LNG fuel.

Speaking at his offices in Singapore, Captain Vadakkepat noted that while 60% of new ship orders are LNG ready, there are issues like methane slip, lack of available fuel and a shortage of engineers trained and certified to use the fuel. He questioned how engineers were going to be trained and who would bear the cost? “We spend the time and effort in training engineers for these new fuels. One way to do this is by doubling them up on a ship that is already operating on these fuels. But if we do this, who will pay?” he said.

Captain Vadakkepat said that every owner wants to optimise the operating budget owner’s perspective is clear, in a way that any additional investment or expenses should be in line with compliance to a regulatory framework, that I am afraid is not quite clear or missing when it comes to training crew for alternate fuels.

And, he said, if there are any incidents or accidents related to new fuels, it will be the master and crew that are held legally responsible as the human element and training are often cited as the root causes and not the gadgets onboard.

He even questions the maritime industry’s ability to reach net-zero emissions, given the lack of available low- and zero-carbon fuels. “How many tonnes of synthetic LNG can be supplied for just these newbuilding orders alone?” he said.

A joint venture between shipowners Reederei NORD and Nissen Kaiun, N2 Tankers manages a pool of tankers built in Japanese shipyards, with two newbuildings coming this year and two in 2027.

“Please look after your hull; that will help you reduce emissions”

Besides training, there are still issues around availability and capacity to supply alternative fuels, even in a place like Singapore, the world’s leading bunkering port. “Roughly 500 ships come and go in Singapore every day. You might have ships waiting, like transiting the Suez Canal because it would be a challenge to hold everyone at the anchorage in Singapore waiting for fuel,” he said.

When it comes to complying with FuelEU Maritime, Captain Vadakkepat said the “best option was pooling” to share the benefits of any surplus compliance from ships that are operating on biofuels. “Biofuels seem to work well,” he said. “They limit investment and only require minor adjustments.”

Among the energy-saving technologies that has attracted his attention is wind-assisted propulsion (WAP). He said WAP would be trialled on newbuildings, potentially reducing fuel consumption by 2-5%. “But the wind has to blow in your favour,” he observed.

Captain Vadakkepat emphasised the importance of regular hull cleaning and the use of silicone coatings. “We have seen substantial savings on fuel. Please look after your hull. That in itself will help you reduce emissions.”

Captain Vadakkepat does believe the IMO Net-Zero Framework eventually will be adopted. “But it has to be a consensus from everyone,” he said, “and the whole industry has to work together towards it.”