2016 Fire Awards Finalist
Maurice Meehan, Director of Shipping Operations, Carbon War Room
Maritime shipping accounts for 2.4% of global GHG emissions – Depending on future economic and energy developments, projected to increase by 50% to 250% in the period to 2050 by the International Maritime Organization. The current rate of innovation and uptake of new tech and fuels will not get us to peak emissions by 2025 or a 50% reduction in total emissions by 2050 (based on 2008 high). Both targets needed for shipping to contribute its fair share to a 2DEG future. We must understand what is blocking investment, coordinate the availability of essential data, and plan future fuel infrastructure.
The Double Return on Investment Platform (R2OI Platform), now transitioning to a multi-stakeholder platform with the Global Maritime Decarbonisation Forum aims to accelerate the mass uptake of ‘clean’ technology solutions in the shipping industry that, deliver ‘double-digit’ efficiency gains, carbon and other emissions savings.
- Split incentives for efficiency: vessel owners pay only 30% of fuel used
- Lack of access to capital for retrofits
- Low industry risk appetite and short (three-year) payback times
- Breakthrough tech providers with “high uncertainty technology” face a chasm between concept design and demonstrating in full use to the market – often called crossing the Valley of Death, as so many promising companies run out of funding during this phase.
A three-year programme of market research and high-level industry forums will identify solutions and disseminate solutions. Forums provide for:
- The exchange of techniques and tools used to ensure returns on retrofit investments;
- The presentation of transactions, case studies and verified results on the use of these techniques and tools; and
- Linking lenders and financiers with potential retrofit projects.
BNEF On-Stage Pitch
Key Impact Metrics
- Current market size: <$10 million
- Market opportunity: $8.4 billion p.a.
The Double ROI platform is currently seeking:
- Funded research resource of $120,000 committed by industry and public sector consortium for 12 months of research, including analysis to understand why different tools are needed (e.g. detailed insights into the existence and severity of split-incentives, the price premium of more efficient designs and the significance of uncertainty in both forecasting and measuring a technology’s performance)
- Funded development team of $560,000 to develop a robust vision, through convenings, research, hackathons and multi-stakholder consultations for a platform that is taken up by the shipping industry beyond the life of the project to move to launch end 2018.
- Annual operational costs of $450,000 for the platform.
- Specific Pilot Technology programs, $250,000
Director of Shipping Operations, Carbon War Room