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Strategic Energy Partnership in Shipping

  • Eunice O. OlaniyiEmail author
  • Patrick Gerber
  • Gunnar Prause
Conference paper
Part of the Lecture Notes in Networks and Systems book series (LNNS, volume 36)

Abstract

The International Maritime Organisation (IMO) is employing a global clean shipping approach to reduce shipping emissions and to improve the Maritime’s carbon footprint. One of the measures was the establishment of Sulphur Emission Control Area (SECA) in special parts of the world including Baltic Sea Region (BSR). Since 2015, ships are allowed only to use fuel with a maximal Sulphur content of 0.1% forcing ship owners to use special bunker fuel like LNG or to invest in expensive abatement technologies like the scrubbers. These are more expensive than the usual heavy fuel oil (HFO). Predictions are that oil prices may increase in which case ship-owners who have started using the LNG or the scrubber’s technologies will enjoy a competitive advantage over others due to the higher margins that can further increase with additional investments into energy efficiency.

In the context of SECA, this paper tackles the research objective of how strategic energy partnerships can be adapted by the maritime sector. The research focused on the adaptation of the scrubber technology for the Maritime Energy Contracting model (MEC) using the Energy Service Contracting concept. Since the authors currently participate in the EnviSuM project, which assesses the technical efficiency and the socio-economic impact of clean shipping solutions of the SECA regulations in BSR, the research was empirically validated by expert interviews, survey results and case studies.

Results illustrated how the MEC model can be a market mechanism for the delivery of emission reduction in the maritime sector.

Keywords

Business model Emission reduction EnviSuM project SECA regulation Maritime Energy Contract 

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Eunice O. Olaniyi
    • 1
    Email author
  • Patrick Gerber
    • 2
  • Gunnar Prause
    • 1
  1. 1.Tallinn School of Business and Governance, Tallinn University of Technology UniversityTallinnEstonia
  2. 2.EP Consulting OÜTallinnEstonia

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