Facing the Decade of Decarbonization –The Power of Wind

NAMEPA 24 Oct 2019

James RhodesMember, ISWA CEO, Magnuss

1.5°C“All ships designed and built today must operate in a net zero emissions world at the end of their service life”

‘GHG emissions from international shipping to peak as soon as possible and to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008’ Initial IMO Strategy on GHG emissions [April 2018]

MAERSK Announcement [Dec 2018] – Fleet Carbon Neutrality by 2050

Carbon Price - EU ETS, which has seen a huge increase in price, from €7/ton to €20/ton of CO2 in 2018, [€62/ton fuel] and predicted average €35-40/ton between 2020-21 [€115-125/ton of fuel]

Global SOx Directive [01 Jan 2020] – current fuel difference €150/ton+

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

LR Survey of Shipping Operators

ISource: Zero-Emission Vessels 2030. How do we get there? https://www.lr.org/en/insights/global-marine-trends-2030/zero-emission-vessels-2030/

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

What can Wind Propulsion deliver ?"In 2030, the market potential could amount to 3,700–10,700 installed systems on bulkers, tankers & container vessels, associated with approx. 3.5–7.5 Mt CO2 savings & 6,500–8,000 direct + 8,500–10,000 indirect jobs." EU Report 2017

“Market potential for wind propulsion tech forecast to grow from €350 million per year (2020s) to €2.5 billion per year (2050s)” UK Maritime Plan July 2019

Wind Propulsion…..

Predictability & Future Proofing – fuel prices & availability, emissions legislation, stranded assets, investments.

Primary Renewable - delivers savings directly at the point of use – 5-20% & possibly up to 30% fuel & emissions as retrofit. 30%+ for optimised new builds.

Installation – Lease Options & Modular Rentals reduce CAPEX, Purchase ROI’s - $600/ton, 3rd Party Validation & Classification.

Facilitate Secondary Renewables (H2, NH3, Battery etc.) –Hybrid solutions reduce power requirements, bunkering & storage– reduces costs of OPEX & CAPEX

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

THard Sail

Rotors

Kites Soft Sail & Dynarigs

Suction Wing

Hull Form

Turbines

Technology Toolbox

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

Stage of Development?

Concept R&D Test & Trial Commercial

Technology Ship Size 2008 2014 2016 2018-2020Rotors <10,000t

>10,000t

Hard Sail <10,000t

>10,000t

Soft Sail <10,000t

>10,000t

Kite <10,000t

>10,000t

Suction Wing

<10,000t

>10,000t

TurbineHull Form

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

Barriers & ChallengesIndustry structure – the split incentive, charter party clauses Solution - new mechanisms e.g. SSI2040 Save as you Sail, Clean Shipping Index, CWR

Perception - a psychological barrier on a potential solution that is so visible. Solution – increasing number of demonstration vessels, communication.

The promises – the need to ‘prove’ savings Solution – more demo vessels, independent verification, pooling of information (IWSA)

Capital intensity for working demonstrators – cost for technology to reach market Solution – increasing coop/pooling resources (IWSA), finance facility & build tech cluster.

Lack of technology transfer – from the offshore and yacht sectors. Solution – increasing transfer is underway, incubation/innovation support (IWSA)

Operational & technical – route specific savings, compliance, cargo handling etc.Solution – working with class, NA/engineers. Weather routing, automated systems, operations management etc.

Lloyds Register: Wind-powered shipping 2015

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

soft sails

suction wing

towing kites

Sail types – soft/wing/kites

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

Sail types - rigid sails

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

Wind technology landscape

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

1925 2010 2013 2014 2015 2016 2017 2018 2019 2020

First classed rotor: Magnuss VOSS

‘Delta Challenger’ Deltamarin

Norsepower: Bore’s RoRo MV Estraden

Eco Flettner: Wind Hybrid Coaster

Eco Flettner: MV Fehn Pollux

Maersk: LR2 Pelican(ETI R&D fund demo)

Norsepower: ferry MV Viking Grace

Anemoi: rotors on rails for MV Afros

Announced: ScandlinesMV Copenhagen

FlettnerRotor: the original, sea trial on Bachau1925.

E Ship 1: Enercon launches RoLo, validates savings from rotors

Magnuss: Zero Emissions bulker

0 MTD0 MT CO2

Ship designs Demonstrations

Demonstrations

SSI: published case study on Magnuss CWR/UCL issues two ground-

breaking reports touting savings potential of rotors (2011,2014)

Magnuss partners with industry on largest ever, full- scale, retractable wind propulsion build-out and deployment

Sail Types - Rotor Development

Joint industry reports

Planned Project

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

Magnuss: Scale with project finance

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

Worldwide Wind Network

43

9

6

2

36

210

12

Facing the Decade of Decarbonization – The Power of Wind NAMEPA 24 Oct 19

International Windship Associationwww.wind-ship.org

Gavin Allwrightsecretary@wind-ship.org

Facing the Decade of Decarbonization – Wind Propulsion NAMEPA 24 Oct 2019