Green Technologies in Transport – Irreversible Growth and Strong Prospects

By
Ralitsa
March 13, 2023

Protecting the planet is becoming an increasingly real priority for shippers and their transport providers. In a series of articles this year, we will look at the trends and key technological achievements in the “greening” of different modes of transport, ports, airports and cargo-handling facilities, as well as the software solutions connected to them.

The race to make transport business models more sustainable

There are two dominant business models in transport regardless of mode or ownership: asset-heavy and asset-light, or even asset-free. Typical representatives of the first group are shipping lines, railways, airlines, owners of containers, trailers and vehicle fleets, while the second includes freight forwarders, NVOCCs and 3PL/4PL operators. While the first group focuses its “green” efforts on alternatives to fossil fuels such as green methanol, green hydrogen and biodiesel, as well as replacing internal-combustion engines with electric propulsion, the second focuses mainly on data management and integration, economies of scale and paperless processes.

On 15 February, nine container lines that are members of the Digital Container Shipping Association (DCSA) made an important decision to accelerate digitalisation in documentation by adopting common standards for the electronic bill of lading (eBL) and committing to 100% adoption by 2030. According to McKinsey, using electronic bills of lading alone could save USD 18 billion annually through simpler documentation and fewer human errors, plus another USD 30–40 billion through faster global trade.

After several years of largely verbal commitments without substantial action to reduce emissions, governments, citizens and businesses have begun to recognise the need for immediate concrete measures, particularly following repeated extreme weather events linked to climate change. Despite attempts by influential politicians to delay unpopular measures, the process has become irreversible and is expected to accelerate.

Leaders of the change

A.P. Moller-Maersk is an undisputed leader in the large-scale adoption of green technologies in shipping. Its efforts in 2022 and 2023 focused heavily on creating strategic alliances to accelerate green methanol production by 2025, when the first six 17,000-TEU methanol-powered vessels from a total order of 19 ships were expected to enter service.

Maersk ordered six methanol-powered ships scheduled for 2025

Henriette Hallberg Thygesen, CEO Fleet & Strategic Brands at A.P. Moller-Maersk, said that decarbonising operations requires a significant and timely acceleration in green-fuel production, and that green methanol is currently the only real market-ready solution for shipping at scale. Maersk has entered into strategic agreements for bio-methanol and e-methanol production with CIMC ENRIC, European Energy, GTB, Orsted, Proman, WasteFuel, Carbon Sink, Debo and SunGas Renewables, Inc. The company’s goal is to achieve full carbon neutrality by 2040.

Other container carriers are moving in the same direction. HMM ordered nine 9,000-TEU methanol-powered ships worth KRW 1.41 trillion (USD 1.12 billion) for delivery between 2025 and 2027. MSC, meanwhile, has also pursued carbon-offset and alternative-fuel approaches, including agreements involving biofuel and orders for dual-fuel vessels.

The innovative HAV Group ASA

In 2021, the Norwegian maritime industry created HAV Group ASA to provide zero-emission solutions for the maritime sector. Through four companies — HAV Design AS, HAV Hydrogen AS, Norwegian Electric Systems AS and Norwegian Greentech AS — the group is positioning itself as a leader in the greening of maritime transport.

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