Carbon War Room Wants a Guinea Pig

By MarEx 2015-09-08 00:21:54

Carbon War Room (CWR) has issued a request for proposals (RFP) to shipowners or charterers for a grant that will help finance a single-vessel retrofit with a bundle of proven technologies. The retrofit will result in a minimum fuel savings of 10–15 percent.

Up to $200,000 will be granted by CWR to fund the installation of continuous monitoring equipment. CWR will also commission independent, third-party analysis of the collected data, which will verify the benefits of the multi-technology retrofit and provide a proof of concept for the entire industry.

CWR analysis of over 100 existing ships has shown that vessels can achieve efficiency gains of at least 10–15 percent by retrofitting with a bundle of proven energy efficiency technologies. These include advanced hull coatings, ducts, fins and new propellers. This builds on a previous report by CWR, Hidden Treasure – Financial Models for Shipping Retrofits, which explored a viable financing model whereby repayment is tied directly to fuel savings.

The grant will cover a portion of the total retrofit bundle, with at least 50 percent of the remaining technology costs to be financed by a third party. This project is funded by the Dutch Postcode Lottery, which recently awarded €1,000,000 ($1.1 million) to Rocky Mountain Institute and CWR to expand their efforts in the shipping industry.

Leading industry banks, including HSH Nordbank and KfW IPEX Bank, have confirmed that more efficient vessels enjoy better marketability, greater revenue potential, and a more attractive risk profile for financiers and shipowners. In consequence, the technology bundle will yield economic benefits in the long-term too, positioning the vessel for financial gains beyond the immediate $200,000 award.

This project gives shipowners and charterers the chance to capitalize on market trends, gain a competitive advantage, and provide leadership for the maritime industry, says CWR.

Victoria Stulgis, Senior Associate, Carbon War Room commented: “This is an opportunity to highlight the savings from a technology-bundle approach through analysis of real, operational data. We’re excited to work with a forward-thinking owner or charterer to deliver a model that can be easily scaled across the industry, save money, and reduce emissions at the same time.”

Owners or charterers that are interested in the project should download the full application particulars from http://bit.ly/RetrofitRFP and submit all necessary information via email to James Mitchell at Carbon War Room (jmitchell@carbonwarroom.com) by October 19.

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