Carbon War Room Offers Grant for Fuel-Saving Retrofit
International non-governmental organisation Carbon War Room (CWR) has issued a request for proposals to shipowners or charterers for a grant of up to USD 200,000 to partly fund the installation of continuous monitoring equipment on one vessel, as part of a retrofit expected to reduce fuel consumption by 10–15%.
The grant will cover a portion of the total retrofit bundle, with at least 50% of the remaining technology costs to be financed by a third party. This project is funded by the Dutch Postcode Lottery, which recently awarded EUR 1 million to Rocky Mountain Institute and CWR to expand their efforts in the shipping industry.
More-efficient vessels enjoy better marketability, greater revenue potential, and a more-attractive risk profile for financiers and shipowners, leading industry banks such as HSH Nordbank and KfW IPEX Bank have confirmed. 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 USD award, CWR says.
Victoria Stulgis, Senior Associate, Carbon War Room, said: “This is an opportunity to highlight the savings from a technology-bundle approach through analysis of real, operational data. 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.”
CWR will also commission independent, third-party analysis of the collected data to verify the potential benefits of the multi-technology retrofit and possibly provide a ‘proof of concept’ for the entire industry.
CWR analysis of over 100 existing ships has shown that vessels can achieve efficiency gains of at least 10–15% by installing energy efficiency technologies. These include advanced hull coatings, ducts, fins, and new propellers.
The request for proposals 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.