Ship efficiency retrofit grant launched by Carbon War Room

Chartering, Corporate Social Responsibility, Energy, Environment, Markets — By on September 8, 2015 at 12:52 AM

CWR 08SEPT2015

“Now is the time for ambitious shipowners and charterers to take advantage of the multiple technologies available. As we see an increasing number of capital providers offering finance for these projects, never before has there been so much confidence in efficiency technologies and the economic benefits they yield.” José María Figueres, Chair of the Board, Rocky Mountain Institute and Carbon War Room
08 September 2015, London, UKCarbon War Room (CWR) today issued a request for proposals (RFP) to shipowners or charterers for a grant that will help finance a single-vessel retrofit with a bundle of proven technologies. The retrofit will result in a minimum fuel savings of 10–15%.

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.

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

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 €1, 000, 000 to Rocky Mountain Institute and CWR to expand their efforts in the shipping industry.

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. 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.

This project gives shipowners and charterers the chance to capitalise on market trends, gain a competitive advantage, and provide leadership for the maritime industry.

Victoria Stulgis, Senior Associate, Carbon War Room commented:

“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.”

Owners or charterers that are interested in the project should download the full application particulars from http://bit.ly/RetrofitRFP
Submit all necessary information via email to James Mitchell at Carbon War Room (jmitchell@carbonwarroom.com) by October 19, 2015
About Carbon War Room
Carbon War Room

Carbon War Room (CWR) was founded in 2009 as a global nonprofit by Sir Richard Branson and a group of likeminded entrepreneurs. It intervenes in markets to accelerate the adoption of business solutions that reduce carbon emissions at gigaton scale and advance the low-carbon economy. CWR merged with Rocky Mountain Institute (RMI) in 2014 and now operates as an RMI business unit. The combined organization engages businesses, communities, institutions, and entrepreneurs to transform global energy use to create a clean, prosperous, and secure future. The combined organization has offices in Snowmass and Boulder, Colorado; New York City; Washington, D.C.; and Beijing.

Carbon War Room launched Shipping Efficiency in 2010. Since then, it has worked with RightShip to develop the GHG Emissions Rating and make it publicly available at ShippingEfficiency.org. The Rating ranks vessels against others of a similar type and size on a simple A to G scale, from most to least efficient. It is now used by charterers to shift a fifth of the world’s shipped tonnage to more-efficient ships annually and by other shipping stakeholders, including ports and banks.

In collaboration with UCL Energy Institute and other industry experts, CWR has created new financing models for efficiency retrofits and partnered with investor EfficientShip Finance to make $25 million available for these retrofits.

For more information, please email James Mitchell here
Or visit the Carbon War Room website here
Or visit the Shipping Efficiency website here
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