Solstad investing in green tech to reach net-zero target
Over the next three years, Norwegian Solstad Offshore is planning to invest more than 300 million NOK (approximately $33.4 million) in battery hybrid conversion projects to achieve a 50% global fleet emission reduction by 2030.
As disclosed, the projects are linked to an 87 million NOK (around $9.7 million) grant that the company received from the state-owned Innovation Norway.
Solstad intends to upgrade a total of 11 vessels with battery hybrid conversions that will enable the vessels to connect to shore power in ports and harbours.
Upon the project completion, the company’s fleet will have a total of 21 battery hybrid vessels.
The upgrades are expected to result in an annual reduction of 12,000 tons of CO2 emissions. They also represent an important measure to reach the company’s target of 50% emission reductions by 2030 and ultimately zero-emission by 2050.
“This major grant from Innovation Norway allows us to step-up up our green technology investment program. The list of vessels includes some of our largest construction vessels that will after conversion contribute to considerable CO2 emission reductions”, said Tor Inge Dale, chief sustainability officer at Solstad Offshore.
In 2021, Innovation Norway introduced a condemnation scheme to support removing older vessels from the market and at the same time fund upgrades of existing vessels with green technology. The scheme aims to contribute to increased investments in the Norwegian fleet and reduce emissions in line with the action plan set by the Norwegian Government.
“Innovation Norway is pleased to see that this funding arrangement can assist on speeding up both the needed work to recycle older offshore vessels as well as provide considerable contributions to fund important decarbonization projects in this segment”, said Sigbjørn John Huun, special advisor at Innovation Norway.
Back in October, Solstad revealed plans to recycle seven vessels at specialised yards in Norway in following the strictest national and international agreements and regulations in accordance with EU Ship Recycling Regulations (EU SRR) and Hong Kong-convention (HKC).