Decarbonisation in Shipping: A Call to Action

A new study by EY Greece has shed light on the substantial challenges facing the shipping industry’s transition to net zero. The study reveals that this transition will be uneven and capital-intensive, influenced by various factors including the availability of alternative fuels, necessary infrastructure, shipyard capacities, access to finance, and fragmented commercial incentives.

Emphasis on Immediate Solutions

BAR Technologies has responded to this report by emphasizing a misstep in the industry’s focus. While the long-term pathways concerning future fuels are essential, the current dialogue around decarbonisation has been overly fixated on hypothetical future options rather than exploring actionable solutions that can be implemented now. The EY study identifies “energy efficiency and operational measures” as the most practical near-term actions that shipping companies can adopt.

The Case for Wind Propulsion

Among these operational measures, wind propulsion shines as a particularly potent option. BAR Technologies argues that it should be acknowledged as a viable component of immediate decarbonisation strategies, given its proven track record in delivering measurable fuel and emissions savings on commercial vessels.

Wind propulsion has begun to enter the mainstream of maritime technology. According to the International Windship Association, over 100 large commercial cargo ships—boasting more than five million tonnes of deadweight capacity—are now equipped to harness wind power. This number reflects significant growth—up nearly fivefold from May 2022—demonstrating that wind technology is gaining traction within the industry.

The Role of BAR Technologies

BAR Technologies is at the forefront of this wind propulsion transition. By the end of 2026, they expect to have 10 vessels operational with 23 WindWings® installed, collectively saving approximately 100 tons of CO2 each day. This indicates a strong commitment to leveraging wind energy not just as a future prospect but as a viable solution for today.

John Cooper, CEO of BAR Technologies, firmly states that the shipping industry must stop considering decarbonisation as a distant goal reliant on future fuels or comprehensive regulatory frameworks. He argues for immediate action to utilize proven technologies that can make a difference now.

The Advantages of Wind as an Energy Source

Wind is unique among energy sources for shipping; it doesn’t require new fuel-production facilities, specialized bunkering infrastructure, or complex global supply chains. Additionally, it’s freely available and enhances a vessel’s flexibility concerning its fuel use. Unlike alternative fuels, which often necessitate new infrastructures and supply chains, wind energy can be harnessed without incurring the same costs associated with fuel production.

Addressing Barriers to Adoption

Despite the clear advantages of wind propulsion, various barriers hinder its broader adoption. Currently, these barriers tend to be more commercial and financial than technical. Under many chartering arrangements, shipowners often absorb the costs associated with implementing wind technology while charterers reap most of the financial benefits from reduced fuel consumption. As a result, owners are left bearing both the investment and long-term performance risks, which discourages them from adopting these greener technologies.

Access to finance also plays a significant role in this equation. Many shipowners do not have access to competitive green lending options or blended finance, making them reliant on conventional commercial borrowing rates to fund emissions-reduction technologies. This reality can extend the payback period, especially in sectors like tramp, bulk, and tanker markets, where unpredictability reigns in routes, earnings, and charter durations.

The Path to Coordination and Investment

The EY study concludes that the successful transition to net zero for shipping hinges on coordinated efforts, commercial viability, access to financial resources, and prompt action across the entire maritime value chain.

John Cooper emphasizes that the real key to unlocking immediate action lies in making green investments manageable and affordable. Shipowners need access to financing that allows for the immediate deployment of proven emissions-reduction technologies. Reducing the cost of capital and creating funding structures that recognize both the savings from fuel and the environmental contributions these technologies offer could enable a broader array of owners to invest in wind propulsion.

In summary, while the path to decarbonisation in shipping poses significant challenges, immediate solutions like wind propulsion are already available. The industry must shift its focus towards these actionable technologies and work collaboratively to overcome the financial and commercial barriers that currently impede progress. The time for action is now; the technology is proven, and the benefits are clear.