Verifying Eco-Technologies: How Third Parties Can Help Commercial Credibility

Estraden with two Rotor Sails

With the number of fuel saving technologies currently on the market, never before has it been so important for technology manufacturers to be able to prove their value. In these challenging times, shipowners and charters want to invest in guaranteed results; they cannot afford to gamble on unverified claims. Technologies therefore rely upon hard evidence to demonstrate a commercially viable ROI for shipowners and charterers and ultimately support business expansion.

While the fuel savings achieved now may not be as compelling as they were at the height of the market, the downturn in the industry has made every saving vitally important to shipowners and charterers. Measurement and analysis conducted by credible and well-known industry data specialists provides a solid foundation from which to transparently communicate the potential of a technology to both prospective clients and investors.

The technologies available are varied in type, offer and the scale of savings they deliver. From air lubrication for hulls and wind propulsion that can offer double-digit savings, to fuel emulsions or engine lubricants that offer more marginal gains, the appetite for tangible cost or efficiency savings is evident across the industry. Each solution presents its own specific measurable data, and varying conditions present unique variables that need to be filtered out of the results they produce. But the one thing that they all have in common is that proven, third party results are crucial to commercial success.

One such company that has adopted this approach to verify its claims is Nanol. Nanol Technologies, the producer of a patented high-performance lube oil additive, has verified that its product delivered a 2% reduction in fuel consumption on M/V Seagard, an operational Ro-Ro Cargo Vessel. Fuel calorific value, operating conditions and typical engine load range all formed part of the analytical process to ensure the accuracy of the saving. As a result of the verification the vessel's charterer, Transfennica, will continue its use on the M/V Seagard and consider extending its use to other vessels in its fleet. It has also secured Nanol the opportunity to meet with venture capitalists to support its future growth.

Norsepower has also proven its technology through verification and reaped the commercial benefits. When the wind conditions are favourable, Norsepower Rotor Sails allow the main engines to be throttled back, saving fuel and reducing emissions while providing the power needed to maintain speed levels and retain voyage time. Monitoring and analysis took into account factors such as wave and wind resistance, propeller efficiency and the effect of different drafts and tide conditions to verify the efficiency savings delivered. From this analysis NAPA was able to confirm a fuel saving of 2.5% from a single Rotor Sail.

As a result of the proven effectiveness of this technology, Bore installed a second Rotor Sail on the same vessel, which represented the first commercial order of Norsepower's technology. The two Rotor Sails are now delivering fuel savings of 6.1% , more than doubling previous savings. This commercial success and verified savings led Power Fund III, a clean tech venture fund managed by VNT Management, to invest €3 million to support Norsepower's growth and market expansion.

It's often said that a lack of liquidity kills innovation. But in challenging times, those technologies delivering genuine fuel efficiencies to the market still have the potential to thrive if they're able to match innovation with evidence. In difficult times, more than ever, shipowners and charterers need investment certainty alongside exciting ideas and products. As do financiers. By enlisting rigorous real-time monitoring and analysis, technology companies stand out from others claiming the same operational savings, and establish themselves as a respected and proven manufacturer. This commercial credibility, which comes hand in hand with third-party verification, is vital to success in today's shipping industry.