What can drive the energy transition in shipping?

The first thing that stood out to me was that energy efficiency seems to be really high on the agenda, alongside LNG as an alternative fuel. Secondly, digitalization seems to be much more in focus than just a couple of years ago. This is why it is so great to come to these trade shows; you can hear what the industry’s talking about and it really helps to calibrate your own views.

The one thing that Alfa Laval is absolutely known for is being innovative from the beginning and that’s still part of the company’s DNA. So when we started working around decarbonization and the energy transition roughly five or six years ago, we took the position that as Alfa Laval we needed to put our money where our mouth was. And, instead of just telling others to decarbonize, we also set some goals for ourselves for 2030. Right now, we expect to meet our Scope 1 and 2 net zero targets ahead of schedule. (PS: After this interview took place, Alfa Laval announced an updated goal to achieve net zero in its own operations by 2027, covering Scope 1 and 2 emissions.) However, challenges remain, particularly supporting customers in areas outside our direct control, such as fuel choice. Shipowners have a tough challenge, finding a vessel design and choosing a fuel that is economically viable, commercially attractive and future-proof for the next 20–25 years. Recognizing this complexity early on, we positioned ourselves to support shipowners with versatile, future-ready solutions. In particular, one major initiative has been to ensure our product portfolio is fuel-agnostic. Additionally, we have prioritized the development of new platforms focused on energy efficiency. Another key step has been the acquisition of StormGeo, which, whilst unconventional for a company like Alfa Laval, aligns with our strategy to address the evolving energy efficiency and sustainability demands of the maritime industry. Ultimately, our commitment is to provide solutions that enable both immediate and long-term decarbonization goals.

It is challenging to be definitive about specific products, but we can identify trends. Our energy efficiency portfolio will play an increasingly important role, even more so than it does today. Transitioning to clean fuels will also grow in importance. If I were to highlight one area, it would be energy efficiency over the short term. Given the challenges in scaling up the supply of green methanol and ammonia by 2030, boosting energy efficiency becomes an essential, immediate necessity for the industry. At Alfa Laval, all three of our divisions – Marine, Energy, and Food and Water – will contribute to these efforts. In the near term, we will focus on enhancing energy efficiency in existing systems whilst introducing new, innovative energy efficiency platforms across our product portfolio to support our customers in navigating this energy transition.

From our perspective, carbon capture and storage (CCS) is set to play an important role, particularly on the energy side. However, the role of onboard carbon capture specifically is less clear. These are two different challenges and we need to approach them with an open mind. For instance, it’s possible that LNG could be a transitional fuel that achieves a 20% reduction in emissions. If onboard carbon capture technology could add another 10–15% reduction on top of that, it might be a viable step forward. However, there are still many questions to address. We need to solve challenges related to the footprint of onboard carbon capture systems, as well as their cost-benefit ratios. These are critical factors that must be worked out before onboard carbon capture becomes a widespread solution. That said, I have confidence in the ingenuity of the maritime industry, and I am optimistic that we will find ways to overcome these challenges. And whilst there are still questions to answer, I firmly believe that carbon capture and storage, both on land and onboard, could make a significant contribution towards accelerating the energy transition.

Historically, third-party classification societies like DNV have focused primarily on safety and compliance. That has been the foundation of why companies engage with classification societies and what you’ve been known for. Looking ahead, however, the role of third-party classification will need to evolve to meet additional demands from the industry. Let me give you an example. Recently, we approached DNV with a specific question. We acknowledged that there is a growing likelihood that ships will move towards greater electrification in the future. There are many differing views globally on how this transition will unfold, but we needed to assess what this shift could mean for us. Specifically, we wanted to understand the potential impact on our portfolio, our top line and our bottom line. Whilst we have our own perspective on this transition, we wanted an independent view — one from a broader and unbiased vantage point. This kind of input is particularly valuable because the consequences of these decisions may not be visible until 10 or 15 years down the line. Having a trusted, third-party perspective helps us calibrate our vision of the future. As industry players, we are bombarded with conflicting narratives from interested stakeholders. So, we need independent thinking to cut through the noise. In this regard, the role of a third-party classification society is becoming significantly broader and more critical than it was in the past. You are no longer just certifying safety or compliance; you are helping to provide clarity and guidance on highly complex and evolving topics where decisions need to be made today with a limited line of sight to the future. I believe DNV has a much larger role to play moving forward than the traditional role you have played in the past.

I have been a part of the maritime industrial landscape for 30+ years and the Oceanbird project is possibly the most challenging project we have ever undertaken in our history. To give you an idea of the scale, this is a 200-ton unit standing 45 metres tall. The complexity of what we are attempting to achieve with wind propulsion surpasses anything we have done before. This project requires bringing together multiple disciplines: aerodynamics, hydraulics, stability, mechanical engineering, and control systems. So, for the first time in our history, we have recruited an aerodynamic engineer, something we had never done previously. We also rely heavily on control engineers and digital automation interfaces. Altogether, it involves five to seven disciplines working in unison.

In this context, the role that a third party like DNV has played has been absolutely crucial. Your contributions have been instrumental in getting us to where we are today. Safety is, of course, a primary concern, but reliability is equally important. If the system doesn’t function in bad weather conditions and we can’t tilt the sails down, we end up with a serious “Houston, we have a problem” moment. DNV’s involvement has been a true partnership, focused not only on building a relationship but also on establishing industry standards. Together, we are redefining how safety and reliability are addressed across the industry. As one of the leading players in this field, we hope to contribute to setting a strong industry standard. At the same time, DNV has been instrumental in helping us achieve critical milestones, such as gaining approval in principle and addressing safety challenges.

I have been in the industry for many years, one of the so-called ‘dinosaurs’ of the industry. That said, I think we are in a good place at this point in time. For shipbuilders, the situation is particularly promising. There is a substantial number of vessels, more than 20,000, that were contracted between 2003 and 2008, which now need to be replaced with more efficient tonnage. This creates a favourable environment. On the geopolitical front, whilst conditions are not perfect, they do create some opportunities for shipowners. This is reinforced by the energy transition, which will require significant investment. If shipbuilders and shipowners remain profitable, this will positively impact the entire supply chain, enabling reinvestment into the infrastructure and technologies necessary for the energy transition. Overall, I believe this is an excellent time for the industry. We all have a critical role to play in the race to achieve net zero. It’s a significant challenge and having the financial strength to accomplish this will be crucial. But I feel optimistic about the near to medium term, as we have strong tailwinds that will hopefully help us reach our goals. PS: After this interview took place, Alfa Laval announced an updated goal to achieve net zero in its own operations by 2027, covering Scope 1 and 2 emissions.