Odfjell chief executive Kristian Morch has told the shipping industry that reaching zero emissions is the only meaningful goal in the sector's decarbonisation drive.
The Danish executive — speaking at The Ocean conference on climate change in Bergen on Tuesday — called on governments to back efforts to clean up the industry, with access to enough renewable energy viewed as absolutely crucial.
Morch told delegates that his company is trying to be at the forefront of the energy transition.
"Although this will take time, we hope that we can be one of the first deepsea shipping companies to reach the goal of zero emissions, as we believe that the only meaningful goal in terms of emission is in fact zero," he said.
"But before we can get to zero we need to go as far as we can with the existing technology."
Morch called for more collaboration within and across industries, with governments and international organisations urged to become involved.
Best mode of transport
He reiterated that compared to other transportation methods, shipping is today "by far the most efficient and environmentally friendly".
"But due to the sheer size of the sector, it is also responsible for about 2% to 3% of global greenhouse gas emissions," he added.
Morch said technology involving green ammonia and methanol is now available.
"But what is not available is the infrastructure that can produce and deliver these fuels using renewable energy," he added.
"I want to emphasise that the major success criteria ultimately is about access to renewable energy. Without that, there will simply not be enough green fuels available for shipping."
Odfjell believes it will take quite some time before fuel cells are ready to power deepsea ships.
And as for batteries, the CEO added: "With today's...technology, we would need three to four more ships to carry the batteries needed for one ship, which is hardly a great solution."
The tanker owner is aiming for carbon neutrality by 2050, and is working on a zero-emissions tanker design.
Regulation needed
"We need the right technology and infrastructure, but perhaps even more importantly, we need clear regulation and we need market-based measures to favour the use of zero-emission fuel, for instance a carbon tax," Morch said.
He argued that the Norwegian government and European Union alone cannot achieve the necessary change.
"We are part of a global industry so we need global rules, otherwise it will not work — we need a level playing field for the entire industry," Morch added.
The CEO said he is proud of Odfjell's efforts to cut carbon intensity by 30% since 2008.
But he warned: "Even if we have a good plan for how to get there, then we are still not even close to the finish line."
The Oslo-listed owner and manager of 92 chemical tankers reported a net loss of $7.8m in the three months to the end of June, compared with a $30.9m profit in the same period of 2020.
