Battery Ships
Høvik, 29th January 2013
Remi Eriksen, CEO DNV Maritime and Oil & Gas
Key strategic drivers - Maritime
The lack of bank and equity
finance will make it difficult to fund
new projects
Increasing fuel prices
Stricter environmental
requirements
Main trends
driving
Maritime
industry
Growing import of natural
resources to Asia from South
America, Australia, and Africa
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Overcapacity in most shipping
segments and poor markets in
short/medium term
The balance of power is shifting
east
Market outlook - Maritime
Vessel type
Consideration

Likely to be slow for several years ahead

Will take years to absorb the fleet growth, but eco-ships will
create NBs
Container

Short term outlook poor, longer term better
General cargo

Stagnant with long term renewal need
LNG

Strong
Offshore

Strong
Tugs

Opportunities
Ferries

Opportunities
Tanker
Bulker
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2yr outlook
New Contracts 2012 – Clarksons (over 2000GT)
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Picture from a large yard – last weeks
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Depressed market situation
 Many yards have failed to win new
contracts this year as the world
orderbook continues to tumble
 Ships are delivered at a rapid rate
 During the 1st half of this year the
orderbook fell 22% in DWT. Since
2009, it is down more than 40%
 Because of lack of financing, only cashrich owners can afford to order
 Owners are reluctant to commit and are
waiting for yards to present packages
including pricing, innovative finance
and fuel-efficient designs
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Newbuilding prices edging down
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SecondHand prices – not bargains but getting there
Panamax peak
90 mill. USD in June 2008
SH prices trying to find a level as potential
sellers avoid “distress” sales.
But the downward pressure is building…
Aframax 30 mill.
USD
Panamax 21 mill. USD
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Maritime Industry at a Crossroad
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Batteridrevne skip
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Shipping 2020 – Summary of Findings
 Newbuildings in 2020 will emit up to 10 to
35% less CO2 than today’s ships
 1 in 10 new buildings in the next 8 years
will be delivered with gas fuelled
engines
 Scrubbers are a significant option after
2020
 At least 30-40% of newbuildings will be
fitted with EGR or SCR by 2016 for NOX
reductions
 Ballast water treatment systems will be
installed on at least half of the world fleet
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Shipping has been lagging other industries in reducing
emissions
Source: DNV Data
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From traditional high emission levels …
CO2 ≈ 75,000
NOx ≈ 2,000,000
PM ≈ 2,500,000
CO2 ≈ 6,000
NOx ≈ 70,000
PM ≈ 100,000
CO2 ≈ 400
NOx ≈ 7,000
PM ≈ 12,000
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…to a decade of transition & opportunities
Hybrid system cost ≈ $2,000,000
Annual fuel costs ≈ $5,000,000
Savings potential ≈ 20%
Annual savings ≈ $1,000,000
Hybrid system cost ≈ $300,000
Annual fuel costs ≈ $250,000
Savings potential ≈ 30%
Annual savings ≈ $75,000
Return on Investment < 2 years
Return on Investment < 4 years
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Benefits
 Good investment
 Improved ship functionality, responsiveness
and reliability
 Improved environmental profile and reputation
with customers, employees, investors and
authorities
 Increased robustness:
- Increases in fuel prices
- Changes to stricter environmental regulations
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Conclusive remarks
 Shipping industry is facing a tough time
- Stricter environmental requirements are being imposed
- Fuel costs keep on increasing
 Innovation is not only something industry want, it is necessary for survival
 The Norwegian Maritime Industry is at the innovation forefront….
 …. and the World looks to Norway for technology and best practice
It is during tough times innovation is most important
and also more efficient
as the purpose and goals become so much clearer!
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Thank you
“The person who says it cannot be done
should not interrupt the person doing it”
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Safeguarding life, property
and the environment
www.dnv.com
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