Carbon War Room Offering $200,000 Ship Efficiency Grant to Prove 10-15% Fuel Savings Are Possible

Carbon War Room says it will award up to $200,000 through a grant for the retrofit of a vessel with ship efficiency technologies.

London-based Carbon War Room (CWR) Tuesday announced that it has opened a request for proposals (RFP) to ship owners and charterers for a grant that will help finance the retrofit of a single-vessel with ship efficiency technologies to help prove that a combination of efficiency retrofits can achieve a minimum of 10 to 15 percent in fuel savings.

"CWR analysis of over 100 existing ships has shown that vessels can achieve efficiency gains of at least 10–15 percent by retrofitting with a bundle of proven energy efficiency technologies. These include advanced hull coatings, ducts, fins, and new propellers," stated CWR.

"This builds on a previous report by CWR, Hidden Treasure – Financial Models for Shipping Retrofits, which explored a viable financing model whereby repayment is tied directly to fuel savings.

"Up to 200,000 USD will be granted by CWR to fund the installation of continuous monitoring equipment. CWR will also commission independent, third-party analysis of the collected data, which will verify the benefits of the multi-technology retrofit and provide a ‘proof of concept’ for the entire industry."

Funded by the Dutch Postcode Lottery, the grant is said to be intended to pay for a portion of the retrofit bundle, while at least 50 percent of the remaining costs for technology will be covered by a third party.

"Leading industry banks, including HSH Nordbank and KfW IPEX Bank, have confirmed that more-efficient vessels enjoy better marketability, greater revenue potential, and a more-attractive risk profile for financiers and shipowners," explained CWR

"In consequence, the technology bundle will yield economic benefits in the long term too, positioning the vessel for financial gains beyond the immediate $200,000 award."

The project is said to provide shipowners and charterers with an opportunity to take advantage of market trends, show leadership within the industry, and gain an advantage over market competition.

"This is an opportunity to highlight the savings from a technology-bundle approach through analysis of real, operational data," said Victoria Stulgis, Senior Associate at CWR.

"We're excited to work with a forward-thinking owner or charterer to deliver a model that can be easily scaled across the industry, save money, and reduce emissions at the same time."

In May, CWR said that charterers representing 20 percent of global shipped tonnage now have policies in place to avoid using the most inefficient ships based on their GHG Emissions Rating.