Ten years on: How early dual-fuel LNG investments positioned UECC ahead of the market

aspire

· Decade of operations of innovative PCTCs gives RoRo carrier a European lead in green shipping.

· Emissions reduction goal on track to exceed IMO/EU targets by 2030 towards early net zero.

· BioLNG adoption raises bar of environmental performance amid eco-friendly fleet expansion.

United European Car Carriers (UECC) is firmly on course to exceed IMO and EU requirements for emissions reductions by 2030 as it reaps the rewards of pioneering investments in LNG-fuelled Pure Car and Truck Carriers (PCTCs) made over a decade ago – and is raising its sights with accelerated adoption of bioLNG to fuel sustainability gains.

This year marks UECC’s tenth anniversary of the delivery in 2016 of the world’s first two dual-fuel LNG PCTCs – Auto Eco and Auto Energy – from China’s NACKS Shipyard that set a new standard for eco-friendly maritime transport in the European short sea RoRo trade in which it operates.

‘Pioneering technology’

“When UECC ordered the world’s first dual-fuel LNG PCTCs, the technology was considered pioneering in the maritime industry. A decade later, dual-fuel propulsion has become the prevailing choice for a significant share of global newbuild vessel orders, underlining how early investment in lower-emission technologies positioned UECC ahead of the market,” says UECC’s CEO Glenn Edvardsen.

“At the time UECC committed to LNG newbuilds, dual-fuel LNG propulsion was the most mature and environmentally progressive solution available for delivering substantial emission reduction in shipping.

“Rather than adopting a wait-and-see strategy while searching for a perfect future fuel solution, UECC chose to invest early in technologies capable of delivering immediate and meaningful greenhouse gas emissions reductions.

“While recognizing that LNG was not a perfect long-term solution on its own, the company believed it was important not to let the perfect become the enemy of the good. That decision has since provided the foundation for further emissions improvements through bioLNG adoption, hybridisation and continued energy-efficiency innovation.”

Subsequent deliveries in 2021 of three more advanced multi-fuel LNG battery hybrid PCTCs – also the first vessels of their kind – gave UECC the most environmentally efficient fleet in its market segment with the addition of newbuilds Auto Achieve, Auto Aspire and Auto Advance, built at China’s Jiangnan Shipyard.

Taking advantage of LNG

Scheduled delivery of four additional newbuild multi-fuel LNG battery hybrid PCTCs from China Merchants Jinling Shipyard Nanjing in 2028 will further enhance the sustainability of the UECC fleet as the company continues to demonstrate that integrating LNG technology with innovative energy-efficiency features offers a viable route for significant emissions savings to reach net zero.

“Already from an early stage, we recognized that we needed to take environmental responsibility and took the initiative with these sustainable newbuild investments as far back as 15 years ago to drive the nascent industry shift towards greener operations,” says UECC’s CEO Glenn Edvardsen.

“Acting ahead of regulation, we have been able to progressively reduce the carbon footprint of our operations over the past decade to consistently deliver more sustainable transport logistics – and thereby reduce the Scope 3 emissions of our customers. This has now proven to be a competitive advantage as carbon-pricing regulation has kicked in.”

He explains UECC’s newbuild investments have contributed to curbing exposure to the EU Emissions Trading System (EU ETS), while enabling its fleet to run with a compliance surplus under FuelEU Maritime that both avoids surcharges and gives it earnings potential through pooling. Furthermore, 100% of the UECC fleet has a C-rating or above under the IMO’s Carbon Intensity Indicator (CII) regulation.

Exponential emissions reduction

Consequently, UECC is rapidly approaching its goal of a 45% reduction in emissions in 2030 versus a 2014 baseline – equating to around 186,600 tons of CO₂ – after seeing a cut of nearly 154,500 tons last year following an exponential improvement since a reduction of about 3200 tons in 2017.

That would put UECC well ahead of the respective IMO and EU emissions reduction targets of 20% versus 2008 and 55% versus 1990, while the company aims to achieve net zero in 2040 – earlier than targeted by both authorities.

UECC Sustainability Manager Steinar Rinvik Spinnangr attributes this trend to the company’s proactive alternative fuel adoption strategy, initially with biofuels on existing vessels but primarily with switching to liquefied biomethane (LBM), or bioLNG, on its LNG-driven newbuilds under its Sail for Change initiative with participation by major vehicle manufacturers.

“This has really turbocharged sustainable operations as the share of bioLNG has more than doubled over the past year to 71% of our LNG consumption on these vessels, drastically improving their environmental performance. And we envisage bioLNG playing an increasing role in fuelling our fleet going forward as additional newbuilds come online,” he says.

Alternative fuel adoption

UECC has also taken these factors into account when evaluating the potential of fuels in relation to technological readiness, commercial viability, safety and handling, sustainability and regulatory compliance, according to Spinnangr.

In addition, UECC has facilitated development of a bunkering network by creating demand for bioLNG, having earlier inked a supply agreement with Titan Clean Fuels for LBM fuelling at the Port of Rotterdam for PCTCs servicing its main North-South trading network under Sail for Change.

But Head of Ship Management Roar Olsen says it has been far from plain sailing on the company’s sustainability journey as it has needed to overcome technological obstacles to realise its bold and innovative newbuild ambitions.

“Clearly, we were aware of the environmental benefits of LNG, including significantly lower tank-to-wake CO₂ emissions compared with conventional marine fuels, but this fuel had limited application in shipping at the time and was unproven in the PCTC segment.

“So implementation of this technology on the first newbuilds required extensive technical studies, a high level of engineering competence and teamwork to develop a pioneering LNG installation on what was then the most technically advanced PCTC ever built.”

Building on LNG success

Olsen says the first two vessels provided the platform for further evolution of the LNG propulsion system to incorporate a battery hybrid solution and other elements to enhance fuel efficiency – such as energy storage charged by a permanent magnet and a smart energy management system – on subsequent newbuilds developed in collaboration with ship designer Shanghai Merchant Ship Design & Research Institute and class society DNV.

And he concludes: “We have effectively capitalized on LNG technology and widespread availability of the fuel to help pioneer this ground-breaking solution in the shipping industry – and it has delivered a step-change improvement in environmental performance over 10 years of operations.”

For more information contact:

Bjorn O. Gran Svenningsen, Director Sales & Marketing, UECC Email: bsv@uecc.com Website: uecc.com

About UECC

UECC (United European Car Carriers) is a leading provider of sustainable shortsea RoRo transportation in Europe. UECC operates a fleet of Pure Car and Truck Carriers (PCTCs), delivering logistics solutions with a focus on sustainability. The company is committed to reducing its environmental impact through the Sail for Change programme and other initiatives.

UECC has progressively enhanced the green performance of its fleet over the past decade since delivery of the first dual-fuel LNG PCTC Auto Eco in 2016. Illustration: UECC/Blue-C

UECC has evolved LNG propulsion technology for the PCTC segment with development of multi-fuel LNG battery hybrid newbuilds including Auto Aspire. Photo: UECC