Interview: DNV's Knut Ørbeck-Nilssen on Efficiency and Carbon Capture

Leading class society DNV believes that green fuels will be costly and scarce for the rest of the decade, making efficiency the most important near-term element of the green transition. To find out more about what shipowners are doing to decarbonize with the resources they have today, TME spoke with DNV Maritime CEO Knut Ørbeck-Nilssen to get an insider's view.

TME: The largest vessel operators have lots of decarbonization options, but what should small and midsize owners do to reduce their emissions?

Well, I think the area these owners should focus on is energy efficiency. Some of these measures are on the technology side, which requires capital investment, and some are on the operational side, which requires investment in the skills of the crew.

On the operational side, there is a lot that can be done - for example, improving the routing of the vessels with better planning, and trying to arrive at the destination right on time. If you can steam at a more appropriate speed, and you have a discussion with the charterers about an arrival time that makes sense, you don't have to go at high speed to reach the destination and then wait for a berth.  

There are contractual questions about who shares the savings and who benefits from just-in-time arrival. Commercial conditions will determine what will prevail, and I think that in order to really get that discussion moving, the industry will need to be more transparent on performance.

As we all know, when you start measuring things, you usually have a tendency to get those things done. And if you have transparency, you will automatically create a sense of competition about who can do better. And nobody likes to be below average. 

TME: What about technical improvements to the ship itself?

You can do everything from changing to LED lights, cleaning the hull, changing propellers or putting air lubrication systems in - there are numerous things. Of course, it depends on the age of the vessel and how much you would like to reinvest. There is a probably a cutoff at a certain vessel age where you wouldn't want to do too many technology investments, and would focus on the operational side instead. 

TME: How about installing onboard carbon capture?

In almost all decarbonization scenarios that we have studied, carbon capture comes up. Like with alternative fuels, it's not simple, but we feel that the CO2 capture technology on board the vessels can be implemented. We are in some technology pilots now, and they are showing promising results.

According to the maritime forecast, the estimated demand for carbon storage from shipping in 2030 is between 4 and 76 MtCO2. Interestingly, the global carbon-storage capacity for that year is projected to be between 47 and 67 MtCO2. This means that while shipping’s carbon storage needs could be significant, the global capacity might just be able to accommodate it. Additionally, both the IMO and the EU are working on integrating onboard carbon capture technologies into the regulatory framework to help reduce GHG emissions.

We will also need carbon reception facilities in ports, and that is probably something that we in the industry cannot resolve by ourselves. CO2 emissions savings can be huge. For example, the combined annual emissions from the last voyage of vessels entering the ports of Singapore and Rotterdam amount to 24 MtCO2 and 13 MtCO2, respectively. That's why we've proposed carbon capture corridors, equivalent to the green corridors for alternative fuel. For example, if you take a container ship route from Shanghai to Rotterdam, that would be just two ports, and that level of shoreside infrastructure investment can be arranged.

If we manage to implement onboard carbon capture, we will alleviate a lot of pressure on the world's limited green fuel supply. The 10 largest announced projects for dedicated CO2 storage, which are intended for use with other industries, have a planned capacity ranging from 7.5 to 20 MtCO2 per year. We think that it will not replace green fuels, but it is an important supplement.

TME: How will data and digitalization play a role?

I think that digitalization can really help on the decarbonization journey and foster trust in vessel monitoring and performance. Enabling accurate data with the right requirements, combined  with transparent and independent evaluation of performance, is what is needed  to make it work and I think that's where DNV could play a major part.

At DNV, we are developing what we are now calling the Vessel Technical Index, an accurate measurement of performance on the propeller shaft. It is a way that you can measure the performance of the vessel's efficiency and installed technology, removing the environmental effects from weather and operational effects like speed instructions and cargo carried. With this method, you take away a lot of the uncertainties around all of the things that cannot be controlled during a voyage.

For example, if you install a wind-assisted propulsion system or air lubrication system, you will be able to measure its effects on efficiency in full-scale operation. You would then know what the saving potential of the measure is in different conditions, fostering greater trust in the business case, and it will potentially be easier to share the cost of that installation with the charterer. It's a very understandable metric that you can write into a contract. Last year we released a Recommended Practice on this in order to be totally transparent and ensure the measurement is not just a black box to industry partners.

TME: FuelEU Maritime is going to provide new impetus to efficiency investments. Can you tell us a bit about the factors that go into planning for the new regulation?

FuelEU Maritime is a key driver for efficiency investments, and at DNV, we’re actively helping our customers get ready for these changes. First, companies will need to submit a FuelEU Monitoring Plan to an accredited verifier like DNV. This plan outlines how emissions are monitored and reported for each ship, and our role is to ensure these plans meet regulatory standards. Our compliance services also include verification of emissions pooling arrangements, offering a solution for companies looking to manage compliance collectively.

Additionally, DNV’s FuelEU Maritime Plan Generator is a comprehensive online tool designed to help shipowners and operators prepare for compliance with the upcoming regulations.

Beyond helping customers meet their regulatory obligations, DNV also makes it easier to handle the wider implications of FuelEU Maritime. Through digital tools like Emissions Connect, we provide the data management capabilities that support decision-making, optimize performance, and enhance operational efficiency. This enables shipowners and operators to stay on top of both compliance requirements and the commercial realities they face.

TME: DNV entered the data-sharing arena early with the Veracity platform. How has that supported your work?

We are extremely pleased in the way that Veracity has developed. It was a brave decision to enter into the data platform business so early, but we haven't regretted it for one second.

Veracity was a maturing journey for us: in the beginning, we thought that maybe this could be an exclusive platform for the maritime industry, and we would take a big chunk of the data platform market. But what we soon came to realize is that it is really much more of an integrator. We can be part of an industry network of data exchange, and this has been extremely successful. There are many, many software providers and vendors that we connect, and the richer the environment, the more value can be extracted from the data. And I think there's a lot more to come.            -TME