The Emerging Role Of Green Steel In Shipping

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Decarbonising shipping is about more than fuel. “The more we focus on fuels, the more non-fuel related greenhouse gas (GHG) emissions will become relevant,” believes Andreea Miu, head of Decarbonisation at the Sustainable Shipping Initiative (SSI), says an article published on lr website.

Summary

  • The focus on decarbonizing shipping is expanding beyond fuel-related emissions. Non-fuel related greenhouse gas (GHG) emissions are becoming increasingly significant.
  • Steel plays a crucial role in shipping’s lifecycle emissions, accounting for approximately 75-80% of a ship’s weight. The steel sector is responsible for 7-9% of global GHG emissions.
  • A key strategy in reducing these emissions is the increased use of recycled steel or steel produced with lower GHG emissions. The shipping industry is a significant source of high-quality scrap steel.
  • The possibility of circular recycling, where steel from scrapped ships is directly reused in shipbuilding, was discussed. However, geographic barriers present challenges.
  • The Sustainable Shipping Initiative (SSI) advocates for circular recycling and aims to promote a more circular ship lifecycle. However, practical difficulties of such a model exist, such as additional emissions from transporting steel for recycling across long distances.

Beyond Fuel, The Rising Importance Of Non-Fuel Emissions

The focus on decarbonizing shipping is expanding beyond fuel-related emissions. Andreea Miu, head of Decarbonisation at the Sustainable Shipping Initiative (SSI), emphasizes the growing significance of non-fuel related greenhouse gas (GHG) emissions. Her insights were shared at a seminar during London International Shipping Week, coinciding with the release of SSI’s new report, “Green steel and shipping.”

The Impact Of Steel In Shipping’s Environmental Footprint

The seminar highlighted the crucial role of steel in shipping’s lifecycle emissions. With steel accounting for approximately 75-80% of a ship’s weight, its production and usage represent a substantial portion of the shipping industry’s GHG emissions. According to SSI’s report, the steel sector is responsible for 7-9% of global GHG emissions, dwarfing the shipping industry’s fuel emissions, which stand at about 3% as per the European Commission.

Strategies For Emission Reduction, Recycled And Low-Emission Steel

A key strategy in reducing these emissions is the increased use of recycled steel or steel produced with lower GHG emissions. The shipping industry is already a significant source of high-quality scrap steel, indicating a deep interconnection with the steel sector.

The possibility of circular recycling, where steel from scrapped ships is directly reused in shipbuilding, was discussed. However, geographic barriers present challenges, as most ships are built in East Asia while being scrapped in the Indian subcontinent.

SSI’s Vision Vs. Practical Challenges

SSI advocates for circular recycling and aims to promote a more circular ship lifecycle. However, Nicolò Aurisano from AP Moller-Maersk (APM) highlights the practical difficulties of such a model, pointing out that transporting steel for recycling across such distances may lead to additional emissions. He suggests that the shipping industry should instead integrate into the global steel circular economy, learning from sectors like automotive and construction.

AP Moller-Maersk’s Commitment To Green Steel

APM, a pioneer in supporting green steel, joined the SteelZero initiative in 2020 and is progressively focusing on the emissions from shipbuilding and steel use. As low-emission fuels become more common, the relative impact of these emissions is expected to rise.

APM plans to incorporate ‘lower embodied-emission steel’ into future newbuilding contracts, targeting 50% usage by 2030 and aiming for 100% net-zero steel by 2040. This commitment will also influence the end-of-life phase of their ships, although complexities regarding transparency and criteria for steel recycling remain challenges to be addressed.

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Source: lr.org