On Thursday, Gunvor Group, one of the world’s largest physical energy commodities traders and a strategic investor in global industrial infrastructure—announced that it has made an investment in Artemis Technologies. The investment is part of the company’s commitment to developing non-hydrocarbon solutions for maritime transportation.
Artemis Technologies, founded in 2017, is a commercial, applied technologies spin-off of the Artemis Racing sailing team, which competed in the 34th and 35th editions of the America’s Cup—the most technologically demanding sailing competition in the world.
Artemis Technologies draws on the team’s world-class designers, engineers, and boat builders to scale and monetize the hydro-foiling and tool chain intellectual property that the Artemis Racing team developed to enhance its own speed and efficiency over the last seven years. The company’s stated aim is “to become the market leader in high-speed, zero-emission vessels and propulsion systems.”
“Artemis Technologies is working on a number of compelling innovations that will help decarbonize the maritime sector at a time when there is growing demand for low-carbon alternatives,” Gunvor Group Chairman Torbjörn Törnqvist said on Thursday. “Gunvor has committed to reduce the carbon footprint of the commodities we’re trading and our industrial processes, as well as to explore relevant commercial opportunities. There is no silver bullet to the climate change issue. Many solutions are needed.”
Gunvor’s investment follows the U.K. government’s recent awarding of a GBP 33 million (about $45 million) innovation grant to the Belfast Maritime Consortium, a 13-partner syndicate of businesses, academia and government officials aimed at developing zero-emission high-speed ferries. Artemis Technologies leads the Belfast Maritime Consortium, which recently joined Maritime UK, the umbrella organization for the United Kingdom’s maritime industry, a sector valued at GBP 46.1 billion (about $63 billion).
Gunvor’s investment will support Artemis Technologies’ continued development of a transformative electric hydro-foiling propulsion system, the Artemis eFoiler, that will power “green” vessels of the future. Vessels developed as a part of the Belfast project will operate with up to 90 percent less energy than traditional ferries, able to carry up to 350 passengers and produce zero emissions during operation.
“With approximately 30 percent of ship emissions coming from domestic voyages, the maritime sector is under pressure to develop and adopt new disruptive innovations,” said Double Olympic sailing gold medallist and CEO of Artemis Technologies, Dr. Iain Percy OBE. “This means that reducing emissions on smaller domestic fleets, which typically make these shorter journeys, will be key in meeting net zero goals.”
Meanwhile, up north
The Gunvor-Artemis partnership follows a flurry of decarbonization activity aimed at ferry transportation. Last week, private equity giant EQT Infrastructure announced that it is buying Molslinjen, which operates Denmark’s domestic ferry fleet connecting its two biggest cities, Copenhagen and Aarhus. EQT Infrastructure said in a statement that will support Molslinjen’s ongoing sustainability agenda, namely the decarbonization of its ferry fleet.
And in November, Danish shipper DFDS Group, the Northern European shipping giant that operates 55 ferries across 24 routes, 35 logistics locations, 8 port terminals, and 9000 trailer and container units, announced that it was partnering with a group of companies to develop a 100 percent hydrogen-powered ferry for the Frederikshavn–Copenhagen route. DFDS’s partner consortium includes ABB, Ballard Power Systems Europe, Hexagon Purus, Lloyd’s Register, ship designer KNUD E. HANSEN, Ørsted, and Danish Ship Finance.
That project will develop the biggest hydrogen-fueled ferry with 23MW fuel cells, and capacity for 1,800 passengers, 120 freight trucks, 380 and cars. The ferry is expected to be operational by 2027.
Poseidon Principles
This week, 15 Signatories of the so-called Poseidon Principles for maritime sustainability through shipping finance disclosed the climate alignment score of their ship finance portfolios for the first time.
The Poseidon Principles Annual Disclosure Report 2020 shows that 3 banks’ ship finance portfolios are aligned with UN decarbonization targets while 12 banks’ portfolios are not. The climate assessment is designed to give banks new insight into their lending decisions, and provide an opportunity to work with shipping clients to meet broader social goals.
Announced in June 2019, Poseidon Principles establish a global framework to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with climate goals set by the International Maritime Organization (IMO). The Poseidon Principles became the first sector-specific climate alignment agreement for financial institutions
Twenty financial institutions to date have joined the Poseidon Principles, representing over $150 billion in loans to international shipping, or more than a third of the global shipping finance portfolio. The Principles were developed by global banks – Citi, Societe Generale, and DNB – in collaboration with leading industry players – A.P. Møller Mærsk, Cargill, Euronav, Gram Car Carriers, Lloyd’s Register, and Watson Farley & Williams – with expert support by the Global Maritime Forum, Rocky Mountain Institute, University College London Energy Institute, and UMAS.
United Nations agencies estimate the international shipping industry to carry around 80 percent of global trade flows and to be responsible for 2-3 percent of global greenhouse gas emissions annually.
Sea Cargo Charter
Not incidentally, there’s another environmental charter for the sector, representing shipping and industrial interests. In October, the Global Maritime Forum (an international not-for-profit) announced the signing of the Sea Cargo Charter.
Signatories of that charter include the world’s largest energy, agriculture, mining, and commodity trading companies (including Gunvor Group, as well as Anglo American, ADM, Bunge, Cargill Ocean Transportation, Equinor, Louis Dreyfus, COFCO International, Occidental, Shell and Trafigura), pledging to assess and disclose the climate alignment of their shipping activities.
Large industrial corporations are significant users of international shipping services. The shipping of crude oil, coal, iron ore, grain and other bulk commodities used worldwide make up over 80 percent of global seaborne trade. The U.N.’s International Maritime Organization has a stated ambition of reducing greenhouse gas emissions from international shipping by at least 50 percent by 2050.
