As a leading entity in maritime safety and sustainability, DNV is at the forefront of driving decarbonization efforts within the industry. DNV Maritime is dedicated to addressing the critical challenges that companies face on their path to achieving environmental goals, as Lefteris Koukoulopoulos, Regional Decarbonization Specialist at DNV Maritime, explains in an exclusive interview with Robban Assafina. Koukoulopoulos outlines practical methods for reducing energy consumption in existing ships, which can lower fuel use by up to 16%.

Given the uncertainty surrounding the use of alternative fuels and the multitude of solutions available for reducing vessel emissions, what do you foresee as the next major challenges in decarbonizing the maritime industry?

The main challenges in decarbonizing the shipping industry stem from uncertainties about alternative fuels, regulations and market mechanisms. The industry faces difficulties in transitioning to the large-scale use of alternative fuels such as LNG, ammonia and methanol due to limited supply, high costs and safety concerns. 

With 93% of the current global fleet still running on fossil fuels, meeting decarbonization targets by 2050 will require significant advances in fuel production and distribution infrastructure, retrofitting of existing vessels and building of new vessels capable of running on alternative fuels. In addition, the regulatory environment is complex as compliance becomes more stringent. 

Achieving full decarbonization will also require collaboration between shipowners, technology developers and fuel producers.

How do the current political landscape and regulatory framework influence the future of decarbonization?

Both are crucial drivers of the decarbonization agenda. In many regions, governments are implementing more ambitious climate policies, driven by growing societal demand for sustainability. These policies are creating a clearer pathway for industries to adopt cleaner technologies and more sustainable practices.

Regulatory frameworks, particularly those tied to carbon pricing, renewable energy incentives, and emissions targets, are playing a pivotal role in shaping investment decisions. However, the pace of regulatory change and political support varies across countries, and this can impact the speed and scale of global decarbonization efforts.

At DNV, we believe that decarbonization equals collaboration between policymakers, industries, and society. We in DNV can support businesses in navigating these evolving landscapes, ensuring they can meet both regulatory requirements and sustainability goals.

What are your thoughts on the collaboration between governmental and non-governmental entities concerning funding mechanisms and financial incentives for decarbonization projects?
Decarbonization projects require significant investment and long-term commitment. Funding mechanisms and financial incentives play a critical role in making these projects feasible and attractive to investors. Governments can create favourable conditions through policies, while non-governmental entities—including private investors, financial institutions, and industry stakeholders can bring innovative financing solutions and expertise to the table.

Partnerships between these entities are crucial to bridge the funding gap. Public funds alone may not be sufficient to support the scale of transformation needed to meet global climate targets. However, when combined with private investment and financial innovation, the potential for impact is far greater. These collaborations also help reduce risk, which encourages broader participation from the private sector.

For example, initiatives such as the EU's FuelEU Maritime Regulation promote compliance pooling, which encourages shipowners to invest in alternative fuels and technologies by enabling them to share compliance responsibilities across fleets. Financial incentives and investments from these collaborations can accelerate the uptake of new technologies while spreading the financial burden across stakeholders.

Between the EU target of a 70% reduction in emissions by 2040, and IMO goal of zero emissions in 2050, what challenges do you anticipate? How do you evaluate the effectiveness of these two targets?

Both targets face significant challenges, including the slow uptake of alternative fuels, high costs and the need for new fuel infrastructure. The IMO's target of zero emissions by 2050 is ambitious, given that most ships will still be powered by fossil fuels in the near future. The effectiveness of these targets will depend on how quickly carbon-neutral fuels can be produced at scale, how regulations evolve and the willingness of the industry to invest in new technologies. The EU's 2040 target is more focused on incremental progress, while the IMO's 2050 target implies more substantial transformations in the later years.

Can you outline the primary methods for reducing energy consumption in existing ships?

Reducing the energy consumption of existing ships is critical to meeting decarbonization targets, and there are several key methods to achieve this. One effective approach is operational efficiency, which includes optimizing vessel speed and route planning. Reducing speed, known as slow steaming, can significantly reduce fuel consumption and emissions. In addition, technical energy efficiency measures are essential. 

These include upgrades such as advanced hull coatings to reduce friction, air lubrication systems and improved propeller designs to improve hydrodynamics. Retrofitting engines for greater fuel efficiency and installing waste heat recovery systems can further reduce energy losses during operation. Digitalization also plays a key role by enabling more efficient monitoring of vessel performance. By analysing data, ships can better optimize their operations in real time, reducing unnecessary energy consumption. 

Hybridization, such as the use of battery systems for auxiliary power or propulsion, is another emerging solution, particularly for short voyages or smaller vessels. At DNV, we have found that these methods can reduce fuel consumption by up to 16% when implemented on existing ships, providing significant cost savings while reducing emissions.

Observing shipbuilding trends, it's evident that future ships will focus on machinery improvements, speed reduction, vessel routing, and hull coatings, to lower energy consumption. How would you describe this scenario from the perspective of a decarbonization expert, and what responsibilities do shipowners and shipyards/stakeholders have?

The focus on engine improvements, speed reduction, vessel routing and hull coatings in shipbuilding reflects the industry's commitment to energy efficiency and emissions reduction. These advances are critical if the maritime sector is to meet global decarbonization targets. 

Machinery improvements, such as more efficient engines, waste heat recovery systems and wind-assisted propulsion systems (WAPS), will play a significant role in reducing energy consumption.

Shipowners, shipyards and stakeholders have a key role to play in advancing the maritime industry's decarbonization goals by investing in research and development, adopting new technologies and collaborating with key industry stakeholders, including technology providers, regulators and environmental organisations. 

Ensuring compliance with international and local environmental regulations is critical, as is the ongoing training and education of crew and staff on new technologies and sustainable practices. 

Shipowners have a responsibility to invest in these operational strategies to ensure their fleets are future-proof and compliant with evolving regulations. Shipyards need to incorporate energy efficient designs and technologies into newbuilds to meet stringent environmental standards. 

Stakeholders, such as regulators and financiers, must provide clear guidance, incentives and access to capital for sustainable investments, while planning for the financial implications of transitioning to greener technologies. 

Moreover, embracing digitalization to optimize vessel operations is essential to improve energy efficiency, also maintaining transparency in operations and regularly reporting on sustainability efforts are critical. in this evolving scenario, collaboration between all stakeholders is key to successfully achieving decarbonization goals.

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	Issue 94 of Robban Assafina (Nov/ Dec. 2024)