South Korean Hanwha Group Emphasizes On ‘Decarbonization Of Shipping’ At Davos

Hanwha Group emphasizes on 'decarbonization of shipping' at Davos. Photo: Pexels

Vice Chairman of South Korea-based clean energy company Hanwha Group, Dong Kwan Kim, talked about the decarbonization of shipping and plans to build a zero-emission gas carrier at the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland. Under this concept, the vessels will be run on alternative fuels which will happen for the first time in the industry.

“Hanwha is challenging existing industry frameworks, spearheading innovations, and paving the way for maritime decarbonisation,” said Dong Kwan Kim, Vice Chairman of Hanwha Group. “We’re taking a holistic approach to the energy transition, driving disruptive change not only in the production and storage of clean energy but in transportation as well,” he added.

As the world grapples with rising temperatures and world-threatening climate events, decarbonisation of shipping is imperative provided the crucial role played by the shipping industry in global trade.

Kim shared Hanwha’s blueprint for the development of a carbon-free vessel powered by alternative fuels such as ammonia during a session titled “The First Fossil-Free Ship on the Water,”. Further, he also apprised about developing an ammonia-powered gas turbine to replace conventional engines and eliminate the need for pilot fuel eventually reducing carbon emissions. It was also said that the installation of hydrogen fuel cells with energy storage systems (ESS) as the vessel’s auxiliary source of power is also at the offing.

According to Deloitte, the first report on the intricacies involved with achieving decarbonisation of shipping, ‘All Hands on Deck’ was published in 2020 with several significant recommendations that included scaling up pockets of demand for low carbon solutions through joint-purchasing coalitions, taking a segment-specific approach to decarbonization, leveraging local/regional regulation for momentum and near-term impact and activating green corridors to create concrete proof points in specific geographies.

As per a study conducted by the Council On Energy, Environment and Water, there are around 2,000 vessels that cater to passenger demand and 1,600 vessels enable cargo movement on inland waterways, consuming about 1,200 lakh liters of fuel as of 2019. The estimated emissions of the inland waterways transport (IWT) sector stand at about 277,000 tonnes of CO₂ (tCO₂) as of 2019, read the report. Further, the key findings of the report stated that if 100 percent of IWT cargo vessels are transitioned to LNG, then there can be a 27 percent reduction in annual emissions while the transition to solar-assisted electric boats can result in a 13 percent reduction in emissions by 2030.