Solvang towards the future
PUSHING FOR GHG PENALTIES
The new GHG regulations from the EU and IMO announce a new era for global shipping. Solvang has carefully prepared for what is to come.
Solvang’s fleet demonstrate the results of systematic environmental efforts through many years. This includes operations, design and technology. Our achievements in terms of reduced energy consumption and emissions correspond with the international strategy to mitigate climate changes. In 2023, IMO defined the targets to reduce emissions by 20 to 30 % by 2030, by 70 to 80 % by 2040, and to fully eliminate net greenhouse gas emissions by 2050. In the spring of 2025, IMO defined yearly limits of GHG intensity in shipping fuel. This is calculated well-towake, which is in according to Solvang approach to fuel an emissions.
The fleet reduction in AER (annual efficiency ratio) from 2009 to 2024 is shown in the figure below.
Annual Efficiency Ratio development (AER)
35% reduction since 2009
OCCS project
A central part of Solvang’s future climate achievemtns is the innovative onboard carbon capture and storage technology. In 2024, an OCCS plant was installed on board Clipper Eris. See ”From concept to reality”, pages 3839. Parties: Solvang ASA and Wärtsilä Norway AS, with support from MAN and SINTEF.
Goals:
• To demonstrate that CO2 can be captured and stored as liquid CO2 in deck tanks (achieved Q1, 2025);
• To gain real experience of operation of a shipboard CCS plant;
• To reduce energy consumption;
• To reduce cost (CAPEX/capital expenditures and OPEX/operating expenses);
• To explore maintenance requirements;
• To identify possible buyers of the captured CO2
Scope:
Modification of existing EGC (exhaust gas cleaning) installation to incorporate a particle filter (WESP):
• Testing of WESP unit (ongoing per Aug 2025);
• Installing CO2 absorber and stripper units and associated peripherals, (achieved Q4, 2024);
• Modifying the existing liquefaction system and deck tanks to accommodate liquefaction and storage of CO2 (achieved Q4, 2024);
• Testing of the CCS system to optimize the operation and gain operational experience (ongoing per Aug 2025);
• Provide input to regulators for development of a coherent and practical set of rules for CCS onboard ships (ongoing per Aug 2025).
Our target for 2030
By 2030, Solvang will be fully compliant with AER for all vessels, while the GFI target level will depend on the availability of CCS and biofuel.
Ethylene (E and H-class) vessels AER rating
Solvang’s average AER has improved from 13.73 in 2023 to 13.17 in 2024. This corresponds to an A/B. At sea the AER was 11.7 or an A rating, even for the two vessels that scored below CII compliance due to port operations. Five of eight vessels scored A or B, and one scored C. If corrected for port operations/idling, all vessels scored A or B. Anticipating continuous 2 % reduction in target AER, and simulating E-class and modified H-class up to 2030, the f leet average rate will be B up to 2026 and C up to 2030. Hence, our ethylene fleet will score far better than the required AER in 2025 and also be in compliance in 2030.
LGC fleet AER rating
AER improves from 8.1 to 7.5 from 2023 to 2024, or 7.1 if corrected for port operations and idling. Out of nine LGCs, three had a C rating, and six had B rating. The C-rating was due to planned dockings and trading patterns. Compared to the IMO 2019- 2026 reduction target, the 7.5 value corresponds to a B-rating in 2025 and minimum compliance in 2030. Three vessels are scheduled for drydocking in 2025, which will improve the AER rating.
Assuming continued 2 % reduction in target AER from 2026-2030 (see figure under rules and regulations), the LGC fleet average will require 7.38 in 2030.
Based on the modifications done on the LGC fleet, our LGC vessels will operate in the same pattern with continued improvement of operations, best practice and maintenance. As a result, our LGC fleet will be in IMO compliance also in 2030.
VLGC fleet AER rating
The AER improves from 7.0 to 6.8 from 2023 to 2024, or 6.6 if corrected for port operations and idling. The results give a good C-rating for two vessels, and B rating for three vessels.
Compared to the IMO 2019-2026 reduction target, the 6.8 value corresponds to a B/C. One VLGC was dry-docked in 2024, giving full effect in 2025. Assuming continued 2 % reduction in target AER from 2026-2030, the VLGC fleet average required in 2030 should be < 6.56.
Due to CII requirements, not the EEXI certification, speed for some of the vessels in 2030 will be limited to 15.5 knots. In 2024 average speed was about 16 knots.
With the assumption given above and upgrades, the current Solvang fleet will be fully AER/CII compliant in 2030. Depending on the IMO revision scheduled for 2026, some adjustments could be expected.
Summary 2030
With the assumption given above and upgrades, the current Solvang fleet will be fully AER/CII compliant in 2030. Depending on how IMO’s new GHG regulations will play out, if finally adopted, both targets and limit values for all vessels would likely have to be re-calculated. Changes and amendments can be expected.
OUTLOOK 2050
25 years from now, Solvang’s cargo operations will play a vital role for our clients worldwide. At the same time, net-zero GHG has moved from vision to reality by radical green measures in the Clipper Future programme.
Clipper Future aims to design vessels to comply with future regulations while sticking to a reasonable writeoff schedule. The scope is cost-effective and smart technical solutions to deliver in a well-to-wake perspective. All our newbuildings from 2013 on comply with our vision.
Change of fuel
To comply with IMO GHG zero-emission regulations, we will not get around the need for a zero-carbon fuel. In a well-to-wake perspective, such a fuel is not available in 2025. Only tank-to-wake, where energy and cost intensive processing leads to substantial losses. The price factor is 4 to 10, compared to standard fossil fuels (IMO 4th GHG study 2020).
Pertaining to standard fuels, a well-to-wake approach is crucial to avoid GHG emissions shifting from shipping to other energy generation industries, such as oil or coal power plants.
Electro-fuel
Artificial fuel processed from air, water, and renewable electricity. According to a recent study renewable electricity from clean sources will be limited for the next decades.
In principle, the world’s deep sea shipping could use all the world’s renewable electricity to produce e-fuel with green ammonia. Without active contribution from other industries, it is hard to see how e-fuel could be available in amounts even close to sufficient.
Biofuel
The availability of sustainable biofuel will be defining for the future fuel scenario in shipping. Biofuel is the only alternative able to compete effectively with a fully exhaust-cleaned fossil counterpart, combined with CCS.
Carbon capture and storage
By 2050, Solvang holds necessary experience from onboard carbon capture and storage to effectively demonstrate a world-wide use of the technology.
In combination with biofuel and/or electrofuel with CO2 permanently kept out of greenhouse gas systems, GHG output figures could turn negative. Another option is the aforementioned electro-fuel or e-fuel.
The carbon offset scenario
While all GHG emissions cannot be avoided, high quality emission reduction projects can be used for compensation in a carbon offset scenario. A market for carbon quotas is currently open, trading CO2 cuts to a lower price than using alternative fuels.
Regulations prospect
The conditions for future ship design and fuels will be decided by rules and regulations not yet proposed or adopted. The industry expects tighter regulations on emissions to air other than CO2, particularly SOx, NOx, CO, THC, and particles.
The future development will depend on a trade-off between fuel, engine and cleaning technology. There will be no fully clean fuel in a well-to-wake perspective, because all propellants require a form of processing. Also ”clean fuel” will need cleaning.
Clipper Future design
All newbuildings need the ability to operate on GHG neutral fuel. At the moment, there is no alternative to our two-stroke directly driven main engines for propulsion.
We project a 100 % reduction by 2050 in a mixed scenario of carbon capture and e-fuel/biofuel, compared to 2008 annual GHG emissions
Solvang’s vessels will run OCCS, deliver fuel efficiency above 50 %, and have the option to modify for all fuels. The following examples illustrate that all foreseeable solutions today would be GHG-neutral when using biofuel or e-fuel, without modifications.
Fuel specs
The specific choice of fuel for Clipper Future would be made upon evaluations of commercial operation, environment, technology, and operational expenses and revenues. More alternatives are expected to arrive, some radical, like wind assistance or air lubrication of the hull. They should all be considered in due time.
Currently, Solvang focuses on fuel optimization plus OCCS for optimal flexibility. In a 2050 positive scenario, given sufficient supply of GHG-free renewable electricity, we will deliver CO2 to the bunker barge, and in return receive e-fuel processed by our captured CO2.
In line with technical specifications for vessels, we stick to the Solvang ECO vessel design, including the optimization of hull lines, cargo intake, cruising range, propeller/rudder design, heat recovery, optimal engine load and other measures.
