Photo: An example of how Skarv Shipping Solutions imagine future shortsea vessels may look. Design: https://www.navaldynamics.com/

Skarv Shipping to build four multi-fuel shortsea bulkers

Grieg Edge, the innovation hub of Norwegian shipping group Grieg Star, has teamed up with compatriot Peak Group AS to establish a joint venture named Skarv Shipping Solutions.

The JV founders said that the company aims to help ship and cargo owners reduce their emissions of greenhouse gases and reach their climate goals.

Ships transport ninety per cent of all goods to and from Norway. The vast majority of this is bulk cargo, which is transported by approximately 2,700 ships owned by 2,000 shipping companies. These include numerous small shipping companies, and many of them have limited resources to carry out the measures needed to decarbonise their operations.

Although bulk transport has traditionally been a very energy-efficient way of transporting goods, the industry needs to implement more sustainable solutions. We know that many cargo owners want to cut CO2 emissions from transporting their goods. There is an underlying need to renew the ageing short-sea fleet along the coast of Norway and in Europe and the Mediterranean. And we know that many transport companies and shipping lines are unsure how to make it happen. This is where Skarv Shipping Solutions will be able to help,” says the CEO of the newly founded company, Jan Øivind Svardal.

“We aim to be able to start the development and construction of up to four bulk carriers for transport in Northern Europe before long. The focus will be on measures to reduce energy consumption and emissions of CO2. We are in a transition phase right now, where no one knows with certainty which fuels will become dominant in the future. At the same time, it isn’t easy to guarantee access to green fuels at an acceptable price. That is why we invest in ships with engines that can handle several fuel types, so-called multifuel. Still, they will be able to deliver zero carbon emissions from day one.”

The new company will draw expertise and resources from its parent companies, ensuring expertise in logistics, marketing, analysis, ship design, green technology, shipping and ship operation.

“We believe that much of the development of new propulsion models in shipping will occur within the short-sea segment. In Peak Group, we have found a partner with extensive expertise in that area. We believe that our experience at Grieg within ship technology, deep-sea shipping and logistics as well as the development of the zero-emission ship MS Green Ammonia and other green fuel-related initiatives will be of great value to Skarv,” says the Managing Director of Grieg Edge, Nicolai Grieg.

Earlier this year, Grieg Edge won approval in principle from DNV for its green ammonia tanker MS Green Ammonia which also runs on green ammonia developed jointly with LMG Marin and Wärtsilä.

The tanker is a part of the larger Berlevåg project in the north of Norway where a group of Norwegian companies intends to use wind from Raggovidda to produce green ammonia.

As informed earlier, the tanker will distribute green ammonia from the planned factory in Berlevåg to various locations and end-users along the coast and will also be able to handle ship-to-ship bunkering. 

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The 120-metre long tanker will have a cargo capacity of 7,500 cubic metres of ammonia and will be able to load up to 1,000 cubic metres per hour. The engine will be a Wärtsilä W25DF ammonia engine.

After obtaining the approval, the next steps will be to further detail the ship’s design and initiate the yard tender process.