The path to a carbon-free maritime industry: investments and innovation

On January 14 2020, Peter Bryn, Technical Solutions Manager in ABB Marine & Ports North America, testified before the United States House of Representatives Subcommittee on Coast Guard and Maritime Transportation. The following is a synopsis of his testimony.

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ABB is a market leader in power grids, advanced manufacturing technology, and electric transportation in the U.S. This includes electric vehicle charging infrastructure and marine and port electrification and automation solutions. With the marine industry in the early stages of a transformation to low and zero emissions technologies, the following points summarize ABB Marine & Ports’ main arguments for an electrified, zero-emission fleet:

1. Electric propulsion systems can help marine vessels get to zero emissions. Most alternative propulsion system arrangements are centered around an electrified propulsion system, including diesel or LNG electric hybrids, fully battery powered ships, and fuel cell powered ships. Electric propulsion not only cuts emissions but also improves safety and reliability, while reducing lifecycle costs. An electric-based powertrain may also be considered as futureproof, able to accommodate new power sources as they are developed. Whether power sources consist of fuel cells, batteries, ammonia-fueled generators, or a wave energy harvesting system, electric powertrains can integrate them. This is especially important for Jones Act vessels that will likely undergo power system retrofits over their long service lives, often spanning more than 50 years.
2. Fitting the right solution to each vessel is critical. Vessel types are as varied as the missions they serve and the cargoes they carry. Ferries, inland towboats, harbor tugs, offshore workboats, and oceangoing vessels all have different operational characteristics that require different low or zero-emission technologies. Fortunately, a number of low and zero-emission technologies are either available today or under development, from diesel electric hybrids to fuel cells, full battery electric, and net-zero fuels. Accordingly, policies should focus on setting emissions targets for the marine industry, allowing the industry to assemble the best technology solutions for meeting emissions and operational goals, and provide support to the marine industry as they meet those targets.
3. Lifecyle costs of electric powertrains are typically lower than for conventional diesel power. Vessels powered by electric propulsion systems and ship-wide direct current (DC) electrical system typically cost less to operate over the lifetime of the vessel due to higher energy efficiency, lower maintenance and lower fuel costs. However, their upfront capital costs tend to be higher. This challenge is similar to that experienced by other recent energy technology breakthroughs, like wind and solar power and electric vehicles. However, thanks to a wide range of research, development, and deployment policies and incentives, those upfront costs have come down considerably and have reached or are approaching cost parity. The same will happen to zero-emission marine technologies.
4. Low and zero-emission marine vessel technologies are in the early stages of adoption and need government and policy support. Today there are commercially available zero-emission marine technologies for some segments, like ferries. However, they tend to be more expensive upfront to purchase, which is a big deterrent to ship owners and operators, even though such solutions may be cheaper to operate. For other segments like offshore workboats and oceangoing vessels, cost-effective commercially available zero-emission solutions are still in the very early stages of development. To lower costs and reach a fully zero-emission vessel fleet, deployment of existing technology and development of new technology must be expedited. The industry would benefit from government investments in research, development, and deployment of zero-emission marine technologies.

Reducing marine emissions

We are in the very early stages of a transformation of the marine industry to low and zero emissions technologies. While ports have already begun their march toward electrification, which enables zero-emission operations, the marine sector is just getting started. ABB provides ship and port electrification and automation technologies and solutions. From replacing diesel powered cranes at ports with electric solutions powered by microgrids, to fully electrifying marine vessel propulsion systems, and everything in between, we believe the future of the maritime industry will be electric, digital, and connected. These technologies are used in ports across the US, from Charleston, South Carolina to Long Beach, California. The Coast Guard has also deployed one of ABB’s advanced diesel-electric hybrid propulsion systems on the Great Lakes Icebreaker, the USCGC Mackinaw.

Global adoption of zero emissions technology

Globally, the maritime industry remains dominated by diesel-power, but a significant shift in energy sources is underway. The adoption of low to zero-emission ship technology is shown in Figure 1. While conventional power plants still dominate, a significant jump in both battery powered and liquified natural gas (LNG) ships is evident in Figure 2.

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By vessel type, certain technologies are emerging because they complement the vessel’s operational profile. For example, ferries are strong candidates for batteries because of their short-distance operation and predictable port calls, conducive to utilization of shore chargers. Conversely, containerships travel long distances and have extremely high power demands. Battery and fuel cell technologies require will require more research and development before they are able to meet the needs of oceangoing vessels cost-effectively, leading many operators to opt for LNG.

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Electrified propulsion systems

Most alternative propulsion system arrangements are centered around an electrified propulsion system, including diesel or LNG electric hybrids, full battery, or fuel cells. Electric propulsion not only cuts emissions but also improve safety and reliability while reducing lifecycle costs. An electric-based powertrain is critical as it allows for easy integration of current and future power sources, important for Jones Act vessels that will likely undergo power system retrofits over their long service lives.

Fitting the right solution

Vessel designs vary significantly, each dictated by the vessel’s application and purpose. The low and zero-emission technologies that will be selected for a particular project will be dictated by the needs and operational profile of the vessel. These technologies may include:

It is critical that ship owners and operators identify the proper solution for their vessel, whether using conventional diesel engine arrangement or some combination of low or zero-emission technologies. For example, a harbor tug with significant idle time but using short bursts of full power during operation has a very different operational profile than a Very Large Crude Carrier (VLCC) tanker trading internationally on the spot market across oceans, often spending days at anchorage. Failing to consider a vessel’s operational profile may lead to selection of a propulsion plant that is less efficient and cost effective than the diesel-mechanical baseline.

ABB works with many Jones Act vessel owners, operators, and designers to help them find the best solution for their operations. This ranges from ferries and fishing boats to harbor tugs and dredgers, passenger vessels, and river towboats.

Across segments, several recurring challenges persist: First, while the total lifecycle cost of ownership of a vessel powered by electric propulsion is lower than for a diesel-powered vessel, the upfront costs are often higher. Second, research, development, demonstration, and deployment investments are needed to bring down costs of these new systems and commercialize zero emissions solutions for more challenging applications like high speed catamarans and oceangoing cargo vessels.

US newbuild market

In the private sector, newbuild construction in the US is largely dominated by Short Distance Shipping (SDS) vessels, particularly tugs, towboats, and passenger vessels. By comparison, the number of Oceangoing Vessels (OGV) is small, as shown in Figure 3.

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There are some exciting opportunities for Jones Act oceangoing vessels in the burgeoning offshore wind market, government fleet, offshore oil and gas activity, and larger cargo vessel markets. However, the bulk of this testimony will focus on the coastal and inland vessel markets where most US newbuild construction occurs.

Common US vessel types and solutions

Road and passenger ferries

Ferries have become one of the pioneering vessel types for zero-emission battery deployment because they combine generally shorter routes with regular port visits. Shorter routes allow installation of battery packs that can fully power the vessels on their journeys, while the predictable routes and turnaround times enable efficient deployment of shoreside charging infrastructure. (Table should follow paragraph)

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Not surprisingly, the ferry industry is among the first marine segments to adopt full battery-electric solutions. The two new Maid of the Mist ferries, with power systems supplied by ABB, are the first fully electric, battery-powered vessels to be built in the US. These Niagara Falls tour boats will be powered by a pair of battery packs with a total capacity of 316 kWh, split evenly between two catamaran hulls creating two independent power systems providing full redundancy.

The vessels will charge between each 20-minute round trip while passengers board and disembark. Shoreside charging will only take seven minutes, allowing the batteries to power electric propulsion motors capable of a total 400 kW (563 HP) output. This will all be controlled by ABB’s integrated Power and Energy Management System (PEMS™), which will optimize the energy use on board.

From small to large, most ferries and routes can be electrified. In 2018, two ForSea ferries, operating between Denmark and Sweden, became the world’s largest battery powered ferries, following an ABB-led conversion.

Economics play a large part in the push toward electrification. While zero-emission boats tend to have higher capital costs, operational costs are much lower than diesel powered ships, making them more cost-effective over the lifetime of the vessel. Figure 4 is an example from a ferry project where the battery electric option (Case E) is more expensive up front, but because it costs less to operate, the ship owner or operator ends up saving USD 800,000 over the life the vessel. Just like with electric vehicles, increased deployments together with research and development can help lower the upfront capital cost of zero-emission options.

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In addition to the cost savings of choosing a zero-emission solution, CO2 emissions reductions are evident, as shown in Figure 5. A significant reduction of CO2 is shown in Case E, which assumes an emissions profile in line with the energy generation mix of the power grid in California.

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Harbor tugboats

Like ferries, harbor tugs operate on short routes and typically return to the same port every evening. However, unlike ferries, they have significant idling time and higher power demands. To reduce emissions, a diesel-electric system with a smaller diesel generator and a battery bank can satisfy onboard power requirements when stationary, while being ready to provide instantaneous maneuvering power.

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Figure 6 is an example of a typical tugboat use-case where Cases C and D were recommended by ABB. Like the ferry example above, despite higher upfront capital costs, the lower operating costs of an electric propulsion system can save the ship owner operator over USD 6m over the life of the vessel. Programs that help increase deployments will enable price reductions that come with scale and experience. For example, a low-interest loan program to cover the difference in capital cost could boost adoption.

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Inland towboats

Inland towboats operate under a wide range of profiles. Factors like voyage length and consistency of docking schedule will support either battery-electric or fuel cell-electric solutions. Less ambitious emission reductions can be achieved using a diesel-electric hybrid system with a battery.

ABB is proud to be providing a complete fuel cell-electric power system for what will become one of the world’s first fuel cell powered towboats, which will be operated by Compagnie Fluviale de Transport (CFT) of France.

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Offshore workboats

Offshore workboats present yet another operational profile. Many have long dwell-times when servicing offshore assets like wind farms or oil and gas rigs, while also needing onboard power for ancillary service-related systems. A first step toward reducing emissions for these workboats is to add batteries to a diesel-electric system. The batteries can be used to optimize diesel performance by assuming highly transient loads arising from the podded thrusters as they start and stop while in dynamic positioning mode. The diesel may shut off completely, or if running, can operate at an optimal, steady level and avoid constantly ramping up and down. A movement to zero emissions will likely entail a fuel cell-electric propulsion system with battery. (graphic should follow paragraph)

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ABB is proud to have powered the NKT Victoria, which features ABB’s Onboard DC Grid™ system, enabling a remarkable 60% CO2 reduction versus a comparable vessel. This was achieved due to both greater efficiency in the propulsion system, and operational changes enabled by the electrified system.

Oceangoing cargo vessels

Oceangoing cargo vessels often have predictable operational characteristics, but their long distance routes, coupled with very short port stays, make full battery-electric propulsion systems challenging. The first step toward reducing emissions is to use an alternative fuel like LNG or biofuel, potentially electrified with battery storage. A move toward zero emissions would likely incorporate a fuel cell-electric propulsion system, which ABB is developing on a larger scale (1-3MW) for just this purpose. (graphic should follow paragraph)

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While in port, achieving zero emissions is possible for some vessels today by connecting to a shoreside power source, often called “shore power,” “ship to shore,” or “cold ironing”. ABB has provided a number of cold ironing installations across the globe, providing both the onboard and shoreside equipment. There are challenges to cold ironing, as most older vessels are not outfitted to accept shore power and not all ports are currently equipped to support it. Also, cold ironing can be of limited value if there are substantial non-electric loads (e.g. crude oil tanker steam-powered cargo pumps) or if in-port power demands are not overly significant (e.g. a bulker with only hotel loads).

Summary and recommendations

The marine industry is just beginning its move toward zero emissions, with commercially ready cost effective solutions available today to meet the needs of many vessel segments. Yet certain segments such as oceangoing vessels will require significant additional technology research and development in order to reach the zero-emission target. One common factor across all segments, which is also true across many new technologies, is that with scale and experience, costs trend downward. This has been the case with solar and wind power, and also electric vehicles. The same will hold true for marine vessels.

There are a number of actions that the Federal Government and this Committee can take to increase deployment of existing zero-emission technologies, invest in the zero emissions technologies of the future, and grow US leadership in the marine sector for decades to come

• Green the Federal Fleet. The US government is a globally leading shipowner, and as such it can become a pacesetter in deploying cost-effective, advanced technologies. The non-defense US owned fleet includes Coast Guard, MARAD, and National Park Service vessels.
  
  ABB encourages the Committee to set an ambitious, long-term national plan to achieve zero emissions for all vessels under its ownership. Doing so would have a meaningful impact on vessel emissions and establish the private US maritime industry as a global technology leader. This would also help the US do its part toward meeting the IMO Sustainability Goals. ABB is prepared to support the Committee in developing such a strategy to seek realistic, cost-effective solutions.

• Limit Tier 4 Engine waivers to where true hardships exist. Following a thorough rulemaking process and cost justification, EPA requirements for reduced emission engines have arrived. Engine manufacturers have provided proven, cost-effective engine solutions to meet these requirements. While the EPA is not under the jurisdiction of this Committee, waivers for vessels under this Committee’s jurisdiction should be issued judiciously and only after thorough demonstration of hardship to meet the requirement.

• Support financing mechanisms and direct funding for the private sector, zero-emission vessels, projects, and equipment providers. Zero-emission vessels often have higher up front capital costs, but lower operating costs and therefore lower total cost of ownership than conventional diesel systems. Government investment in research and development can help lower those costs. As such, we recommend supporting and expanding programs like the Maritime Education and Technical Assistance (META) Program. We also suggest exploring establishing a low-interest loan program to cover the incremental capital cost of choosing a zero emissions technology.

• USCG Marine Safety Center. The Coast Guard’s Marine Safety Center (MSC) is faced with the challenge of ensuring the safety of vessels, regardless of propulsion technology. As lithium ion batteries, fuel cells, hydrogen, and other new technologies become commercially available, the MSC is tasked with updating the CFR’s to address these new technologies. This will require time and resources. ABB is prepared to support MSC in this role and asks the Committee to do the same.

• Invest in R&D. While there are commercially available zero-emission solutions available today for some marine segments, others still require significant research and development, particularly in the area of fuel cells, advanced battery chemistries, and advanced net-zero fuels. Through the US Coast Guard’s Research Development Test and Evaluation Program, the Department of Energy, and MARAD’s META Program, the Committee could encourage development of a zero emissions ship research and development program.

• Help solve shore charging. As vessels like ferries electrify, electric utilities are faced with high power loads during recharge. This can often trigger demand charges which can significantly challenge the otherwise favorable economics of moving to electric. Solutions like shoreside energy storage systems are available to mitigate this cost, though they can add cost and complexity to the project. ABB applauds MARAD’s work with the DOE to seek a national strategy to address this challenge, and asks Congress to support this initiative. The Committee could also direct MARAD to invest in shoreside power through funding mechanisms like the Port Infrastructure Development Grants.

• Training. Support Maritime Academies and ensure labs and curriculum include the latest technology. While alternating current (AC) electrical systems remains a common standard on vessels, ships powered by electric propulsion will be built using direct current (DC) architecture. Training curriculum should be updated to address these changes to how ships are powered.

ABB’s commitment to reducing emissions

ABB has set as its goal to reduce its GHG emissions by 40 percent by 2020 from a 2013 baseline. ABB supports the Paris Agreement, which came into force in November 2016, and considers it the linchpin of efforts to limit global warming and avert the potential devastating consequences of climate change. ABB actively contributes to climate goals by encouraging the early and rapid adoption of clean technologies and by helping its customers improve energy efficiency and productivity while extending the lifecycles of their equipment and reducing waste.

Meeting the goals of the Paris Agreement will require significant investment in new and upgraded technologies, which will only be forthcoming with solid, reliable, and predictable policymaking. With around 9,000 technologists and investments of around $23 billion in innovation scheduled to take place between the signing of the Paris Agreement and 2030, ABB therefore urges policymakers to adopt sound climate policies to encourage innovation and create secure investment conditions.

ABB believes that investments in developing and deploying technologies that reduce climate impacts, while incrementally higher at first, lead to significant intermediate and long-term cost savings. Such technologies are core to ABB, as nearly 60 percent of ABB’s global revenues are derived from technologies that directly address the causes of climate change through energy efficiency, renewables integration, and resource conservation. The marine sector also holds a similar promise of reducing emissions and overall costs.

References

Colton, T. (2019, January 6). Shipbuilding History. Retrieved from http://www.shipbuildinghistory.com/statistics.htm

DNVGL. (2018). Energy Transition Outlook .