TECO 2030: A Green Pioneer in The Maritime Industry

A Green Pioneer in the Maritime Industry

In an exclusive interview with the Norwegian finance media InvestorNytt, TECO 2030 gives InvestorNytt an insight into their groundbreaking work on green solutions for the maritime industry. From their early days focusing on environmentally friendly cleaning methods to their current pioneering work with hydrogen-based fuel cells, TECO 2030 is leading the way to a more sustainable future in the maritime industry.

In the interview with TECO 2030 CEO Tore Enger, we gained deeper insight into the company’s history, its green focus, and how it aims to be a pioneer for eco-friendly solutions in the maritime industry.

TECO 2030 started in 2019 as a spinoff from TECO Maritime Group, which celebrates its 30th anniversary next January. Since its foundation in 1994, the company has always had a strong focus on the green segment of the maritime industry.

“We were among the first companies globally to switch from sandblasting to high-pressure water for tank cleaning. This was a revolutionary change that significantly reduced environmental impact,” Enger explained.

In addition, the TECO Maritime Group owned a factory in Singapore specializing in the production of high-pressure cleaners. They were also pioneers in the use of water-based detergents for cleaning cargo tanks.

Enger continues to explain how the company has contributed to extending the life of electronic and automation components, as well as their general ship repair operations in Gibraltar.

“We have always been committed to environmental standards. For example, we were the major owner of Scanship, which is now part of VOW ASA, from 2008 to 2017. Scanship is a world leader in water treatment on board cruise ships,” says Enger.

He also mentions the global “sulfur cap” in 2020, which reduced the sulfur content in heavy fuel oil from 3% to 0.5%. This led to an increase in demand for exhaust cleaners, also known as “scrubbers.”

“We have installed over 130 of these towers on various ships, including many cruise ships. But many wonder why we don’t produce our scrubbers. The answer is simple: We want to focus on solutions that address a wider range of environmental challenges, not just SOX emissions,” Enger concludes.

From Scrubbers to Groundbreaking Fuel Cells

Tore Enger spoke further about TECO 2030’s innovative projects and their vision for the future.

After developing the “TECO future funnel,” which Enger describes as “tomorrow’s scrubber,” in record time with help from AVL in Austria, TECO 2030 began exploring new technological opportunities.

“We did this development in record time, we did it in 6 months. Thanks to AVL, which probably has the most sophisticated simulation tools in the world. So, we ran the scrubber to pieces inside the simulator many times, tore it apart, and replaced components, and by the middle of February 2020, we were ready to go into production, setting two of the scrubbers in production in Germany. And then came Corona, and there were some changes, the market collapsed, and everyone got sick. The world shut down, so we were about to make scrubbers in the worst period of Covid. Then we get through the summer. We wanted to go beyond traditional scrubbers and find technology that the world needs,” says Enger.

This led them to the development of fuel cells specifically designed for the maritime industry and heavy applications. “Nobody in the world had this. Most fuel cells were developed with passenger vehicles in mind, not ships,” Enger explains.

With support from AVL, which is the world’s largest independent developer of powertrain systems, TECO 2030 developed a fuel cell stack that is both powerful and compact. “Our 400KW module has half the footprint compared to competitors. On ships, space is critical, so this is a major advantage,” said Enger.

He also shared the news that their module is currently being tested at AVL’s facilities in Graz, Austria. “We are excited to see the results, and we plan to make a film about this milestone,” he adds.

Enger emphasized the importance of having a strong team. “We attract the best talents in the industry. For example, Hans Petter Klein, one of the world’s leading experts on fuel cells, came to us from AVL,” he said.

TECO 2030 has also entered into a partnership with ThyssenKrupp to deliver manufacturing equipment to their factory in Narvik. “We have a dedicated team in Narvik who previously worked with REC Scancell. They have experience scaling up production quickly,” Enger explained.

He concluded by expressing optimism for the future. “We have the right tools, and we see the market beginning to open up. Doors are opening for us,” Enger said.

ESG Fluctuations and TECO 2030’s Strategy for a Greener Maritime Industry

Enger responds to how fluctuations in the ESG sector affect TECO 2030 and their strategic initiatives to promote environmentally friendly practices in the maritime industry.

“Although we are aware of market fluctuations, they are beyond our control. We are a small player, but we see global giants like IKEA, Apple, and Amazon taking steps towards zero emissions throughout the product value chain. Every step in the right direction contributes to a better world,” says Enger.

Regarding strategic initiatives, Enger explains that TECO 2030 is looking at innovative solutions for the maritime industry. “We can implement fuel cells on ships that use hydrogen. Another possibility is to use ammonia, which can be converted to hydrogen, allowing ships to travel longer distances, such as across the Atlantic.”

He adds that the transition to greener technologies is likely to start with shorter routes, like Oslo to Rotterdam, before expanding to longer routes. “Larger ships will initially combine fuel cells with other types of fuel, which will allow them to dock without polluting. This is the beginning of a global movement towards a more sustainable maritime industry.”

Strategic Partnerships and Economic Outlook for TECO 2030

Tore Enger is asked about TECO 2030’s strategic partnerships and their economic prospects.

“We have an ongoing project with Shell and Horizon Europe, which we call a ‘Lighthouse project’. Both parties have invested 5 million dollars. The goal is to convert a 20-year-old, 6,000-ton ship with high emissions to zero emissions. When the project is completed next year, this ship will go from being the most polluting in the fleet to the most environmentally friendly.”

Regarding the company’s financial prospects, Enger explained: “We are still in a development and testing phase. I expect that 2025 will be the year when we see a significant increase in turnover and a positive bottom line. 2024 is a bit uncertain, as it depends on which major players take the initiative first. We believe that once one of the major players takes the step, it will create a domino effect in the market.”

He added that TECO 2030’s focus is not on small projects but on larger initiatives. “We are not looking for small projects like installing a 200kw system on a local ferry. Our goal is to be part of the bigger change in the industry. We may be a small company, but we are the only one we know of that is planning large-scale production towards the end of next year and into 2025. With a planned production capacity of 400 megawatts per year, this could potentially generate sales of about 400 million euros. “

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Source: Investornytt