Sustainability innovation for a shipping provider
For a leading shipping company, developed a fuel technology strategy to underpin a 60% reduction in emissions.
Working with their senior management team and board, in preparation for a potential investment in a new fleet, we assessed the economic and carbon impact of different technologies and fuels, and modelled the business implications by scenario. The strategy will not only significantly reduce emissions but maximise flexibility, enabling sustained viability amidst fuel price volatility, and for the long term.
Context
Creating a sustainable fleet requires investment in sustainable shipping technology now. Our client was looking at investing in a new fleet of ships which would allow them to dramatically reduce their emissions.
The risk was compounded by uncertainty as to which sustainable fuel technology will ‘win’ in the long-term, so creating a flexible strategy was of paramount importance.
Approach
Working with the senior management team and Board, we assessed the economic and carbon impact of different technologies and fuels, which fed into their evaluation of the economics of the investment.
The resulting strategy enabled future optionality depending on which ‘green’ fuel would be commercially viable in the long-term.
Impact
Following our recommendations the client decided to invest in a new fleet that will be on the ocean by next year.
The strategy will mitigate their emissions by 60% by volume transported. It also allows them to maximise their fuel flexibility – meaning that even amidst sharp shifts in fuel prices the asset is still able to run in a carbon limiting and economically viable way.