DNV CEO Makes “Realistic” Observations on Decarbonization

DNV Maritime CEO Knut Ørbeck-Nilssen delivered introductory remarks at the Energy Efficiency in Focus Seminar at Posidonia outlining the prospects for the decarbonization of the maritime industry and emphasizing the importance of considering energy efficiency measures.

Ørbeck-Nilssen discussed some of the major challenges facing shipping as it strives to reach increasingly ambitious regulations and goals, noting there are not enough green fuels available, and they will remain unavailable for most.

“If you would like to invest in vessels with dual-fuel capability, you will also need to pay a pretty high premium on the capex to get that dual-fuel capability. It is difficult for those who make these investments to transport the costs further up the value chain and these costs more or less rest with those shipowners that invest. So for the segments lacking high commercial drivers, considering energy efficiency measures is essential.”

He also offered the “realistic outlook” that there is a significant divide between politicians’ ambitions and what the industry can deliver. 

“Decarbonization in the maritime industry is likely to slow down. Vessels are busy trading, and there is little incentive to bring them into yards for retrofitting to alternative fuels. On top of that, there is limited capacity at the yards. And although over 50% of new orders being placed are for vessels with dual-fuel capability – which is a really good start – 93% of the global fleet is still running on conventional fuels.”