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Shipping's path to decarbonisation starts with LNG (Riviera)
30th July 2020

One of the biggest challenges facing shipping is achieving IMO 2050 decarbonisation goals. A UK-based ship repair, retrofit and green technology provider believes the path to decarbonisation starts with refitting vessels to burn LNG.

"Retrofitting all the vessels currently at sea with greener technology is paramount if we want to attain the scale of emissions-cutting that is required," said Newport Shipping managing director Lianghui Xia.

UK-based Newport Shipping believes that for the industry to meet the targets set by the IMO 2050 guidelines, it needs to take a step-by-step approach strategy. The first step is to attain a 40% reduction of emissions by 2030 to transition to the 2050 target.

Newport Shipping said that conversion with existing LNG modification technology offers the shipping industry a credible and achievable mid-term solution in cutting emissions for shipowners to meet the 2030 target. "As we see it now, apart from agreeing on the optimum fuel option, the other major challenge is that the agreement and implementation of the environmental agenda is governed by financial metrics", pointed out Mr Xia.

Newport Shipping offers clients seeking to make the switch to LNG a suite of full-service options accompanied by supporting financial packages.

"We offer our turnkey solution with a 5- to 7-year payment plan without fixed vessel mortgage collateral. This is a cost-effective solution to alleviate the upfront financial burden imposed on shipowners today so they can plan for tomorrow", said Mr Xia.

Newport Shipping's turnkey solution encompasses equipment procurement, full-scope design work, on-site project execution at the shipyard with deferred payments. It is a 'one-stop-shop' for shipowners to upgrade their fleet to comply with the increasingly strict environmental regulations.

"Achieving the IMO 2050 targets requires synchronised collective moves by all key market participants," said Mr Xia, and he believes the current Covid-19 pandemic only intensifies the urgency "towards building a more environmentally friendly and humane global eco-system for generations to come."

Source: https://www.rivieramm.com/news-content-hub/news-content-hub/shippings-path-to-decarbonisation-starts-with-lng-60435