General market information
There are about 170,000 ships sailing around the world (including river ways). These will all have to become green in the future. Solutions such as a specialised fuel cell will be essential.
Some countries, such as Norway, have already passed laws that zero-emission shipping is the only option to access certain areas, specially for passenger vessels.
In addition, the pressure from the Paris climate targets is very high.
Shipbuilders have to start rethinking.
TECO 2030 wants to facilitate the transition with a powerful fuel cell and thus contribute to a green transformation.
For this purpose, TECO 2030 wants to establish a fuel cell factory in Narvik, which will then create an annual capacity of 1.2 GW from 2030. This means a turnover of several hundred million euros.
Below is a picture of TECOs Fuelcell development targets and comparison in the market. As it is clearly to see AVL is already outperforming market competitors and they have way higher targets to reach. This will make TECO 2030 fuel cell uniquely strong in the market.
TECOs production capacity is:
10 MW for 2022
60 MW for 2023 (half automatic)
120 MW for 2024 (transfer to full automatic)
400 MW for 2025
1,2 GW for 2030
Possible Capacities from Vessels
This screenshot is taken from TECO 2030 Investor presentation (Site 39).
If we say TECO gets only 1% of all vessel types and with lowest potentital capacity:
Ro-Ro/PAX vessel - 184 MW - 46 vessels (4 MW per vessel)
Water ways-vessel -1200 MW - 600 vessels (2 MW per vessel)
Crude oil tankers - 370 MW - 74 vessels (5 MW per vessel)
Chemical tankers - 224 MW - 56 vessels (4 MW per vessel)
Bulk carriers - 228 MW - 114 vessels (2 MW per vessel)
Cargo vessels - 850 MW - 170 vessels (5 MW per vessel)
LNG vessels - 95 MW - 19 vessels (5 MW per vessel)
This means a total of 3151 MW if TECO only gets 1% of these vessel types and always the lowest potential capacity. If we say TECO get even 2% of all vessels with lowest potential capacity this would mean a total of 6302 MW.
At an average price of 1000€ per kW this gives a turnover of 3.151.000.000€ (3.151 bn €) for 1% case.
In the future, transport infrastructure is to be built as fossil-free as possible. In the new action plan, the government announces, among other things, the launch of fossil-free pilot projects and the use of public procurement to reduce greenhouse gas emissions at construction sites in the transport sector.
- It is not enough to travel green, we also need to build roads, tunnels, railways, ports and airports in a climate-friendly way. That is why we are stepping up our efforts to make construction sites in the transport sector fossil-free. One of the goals is to create more demand in the market for zero-emission machines by initiating pilot projects, says Transport Minister Knut Arild Hareide (KrF).
- Those who build roads, railways and infrastructure for transport in Norway are among the largest builders in the country and have a special responsibility to reduce emissions. In Norway we have renewable energy, climate ambition, knowledge and an innovative and forward-looking business community. We thus have a good basis for saving emissions, securing green competitiveness and finding a pioneering role in the development of fossil-free construction and building sites, says Climate and Environment Minister Sveinung Rotevatn (V).
The market for zero-emission excavators, wheel loaders, dumpers and other construction machinery is currently not mature enough. This means that it is expensive for contractors to buy zero-emission construction machinery. The cost of an electric excavator, for example, is estimated to be about three times that of the diesel alternative.
Direct emissions from the construction sector in Norway are estimated to be around 600,000 - 700,000 tonnes of CO2 equivalents per year. This corresponds to about 4 - 5 percent of the emissions from the transport sector.
Instruments for a fossil-free construction site in the transport sector
To enable fossil-free construction sites by 2025, the government warns in the climate report or action plan for fossil-free construction sites:
Initiate pilot projects for fossil-free construction sites on behalf of the authorities and companies of the Ministry of Transport.
Use requirements in public procurement as a tool to reduce emissions from construction sites in the transport sector.
Gradually increase taxes on greenhouse gas emissions outside quotas to around NOK 2,000 per tonne of CO2.
Aim to introduce sales requirements for biofuels in construction diesel from 2022, which will be raised to the same level as for road transport by 2030.
Initiate a study on requirements and targets for fossil-free construction diesel in the transport sector.
Consider measures to ensure efficient mass turnover of construction sites in the transport sector.
Strengthen the knowledge base on greenhouse gas emissions from construction sites in the transport sector by improving the statistical basis.
Investigate external costs other than CO2 emissions from construction activities.
Under the umbrella of the Norwegian Shipowners' Association, Norwegian shipping companies have taken action by adopting four ambitious goals laid out in a climate strategy. The goals state that members will cut their greenhouse gas emissions by 50% per transported unit by 2030, compared to 2008. Furthermore, from 2030, Norwegian Shipowners' Association members have undertaken to only order
vessels with zero emission technology.
Finally, the ambition is for the Norwegian fleet to be climate neutral from 2050. The strategy also entails an international ban from 2050 on fuel types that are not climate neutral.
"Norwegian shipping is taking a leading role by setting ambitious goals for the development of new and profitable green technology," says Harald Solberg, CEO of the Norwegian Shipowners' Association. "We have high ambitions, even in areas that today do not have commercially available technological solutions. We believe ambitious goals will help accelerate the necessary development. This means that the entire industry, in collaboration with the authorities, both nationally and internationally, must engage in developing new solutions," Norwegian prime minister Erna Solberg says.
The Norwegian parliament has decreed that the country’s UNESCO-protected fjords shall be free from cruise and ferry emissions no later than 2026, DNV GL said.
Although these represent ambitious goals, State Secretary Atle Hamar in the Ministry of Climate and Environment believes that the goal is realistic “using a combination of effective legislation and the most advanced hybrid and battery technology available today, and technologies that will emerge”.
The new law regarding the world heritage fjords is currently under extended review, with approval expected in early 2019. The measures cover emissions to air, discharge of grey and black water, and visible exhaust from the funnel.
The most recent amendments to the regulations also ban the use of scrubbers for removing SOx and NOx from emissions.
“For those not running on clean energy like batteries or hydrogen, this will mean a shift to low-sulphur fuel, use of catalytic converters, or other alternatives,” Hamar explained.
The United Nations Educational, Scientific and Cultural Organization (UNESCO) designated the Geiranger and Nærøy fjords on Norway’s west coast as World Heritage Sites in 2005. The intention of the designation is to ensure the protection, conservation, presentation and transfer to future generations of the culture and natural heritage in the unique fjord environment. Tourism is already well developed in these sensitive fjords, and a 40 percent increase in tourist traffic has been projected by 2030.
“Growth at this level will be unsustainable unless we find new ways to manage tourism in the heritage fjords. The tourism industry will have to take a role in the clean-up, and the government’s assignment is to implement rules and regulations that place responsibility where it belongs,” Hamar added.
In addition to protecting the environment and preserving the natural integrity of the heritage fjords, a key goal with the regulations is to reduce health risks for area residents. A central measure will be to install shore power for all ships to reduce emissions while in port, including supplying adequate power where grids do not have the necessary capacity.
One answer to this challenge is the power dock energy storage concept already in place in Gudvangen in Nærøyfjord, allowing charging over longer periods of time and supplying power as needed to the vessels.
“We are also encouraging the use of local regulations in ports to bring about change. Fees and charges can be adjusted to encourage greener practices in ports, finance sustainable solutions on shore, and reward cleaner ships. Owners must be convinced to build sustainable ships and phase out those most harmful to the environment,” Hamar emphasized.
Establishing hubs further out in the fjords and shuttling passengers into the protected areas is another option under consideration, according to DNV GL.
Hamar noted that the emission-free battery technology that might one day power shuttle craft is already in place on the hybrid Vision of the Fjords and the all-electric Future of the Fjords, both operating in Nærøyfjord.