The shipping industry may be ill prepared to accommodate the
global drive towards biofuel use
Lloyd's Register CEO Richard Sadler has called on the
shipping industry to make preparations for the global drive towards
biofuels and argues that if second and third generation
technologies are successful then current projections of demand
would see the world fleet unable to cope with the logistic
demands.
Speaking last night at IMarEST's annual Stanley Gray lecture,
targeted at shipowners, regulators, economists, engineers and the
general public, Richard Sadler concluded that the increase in
demand for biocargoes would require an additional fleet size of 400
Handysize equivalents by 2030. Moreover, with additional
environmental pressures, these vessel requirements may well
increase. The International Energy Agency (IEA) World Energy
Outlook projections for biofuel demand may well be inflated by
political pressures to find alternative bio energy in shortening
timescales.
The implications for the shipping industry are significant.
Whether first or third generation, whether biodiesel or bioethanol,
shipping will be at the heart of the supply chain and anticipatory
investment will have to be made by the industry. Contradictory
information makes the risk in that investment uncertain and
therefore it is vital to look at ways to hedge the future - through
flexible initial oil tanker design for vessels to be constructed
now and converted in the future to take advantage of growing
biotrade.
The biofuels industry is in the early stages of low carbon
impact second and third generation biofuel development. Companies
investing time and money in developing technology into economically
viable and socially acceptable solutions are naturally keeping
quiet about the technology or products being developed. Whether as
a cargo or for use in the engine room, these new solutions will
have to be incorporated into marine systems. Current ship designs
are constrained by current legislation, creating poor designs if
biofuel becomes a large scale global energy source. New standards
may be required to meet essential safety and environmental needs
and an early start is essential to meet these challenges. Lloyd's
Register welcomes dialogue with all concerned and is ready to
assist.
Notes to editors
For more information contact:
Mark Stokes
Group Communications Director
Lloyd's Register
T +44 (0)24 7423 1725
M +44 (0)7825 734991
E mark.stokes@lr.org
The Lloyd's Register Group is an independent risk management
organization that works to help to improve its clients' quality,
safety, environmental and business performance throughout the
world, because life matters. Its expertise and activities cover
railways, shipping, oil and gas, and other asset-based industries.
The Group comprises charities and non-charitable companies, with
the latter supporting the charities in their public benefit
goals.
For a pdf of the full speech by Richard Sadler, a pdf of the
presentation slides and photo of Richard Sadler, see right or
contact news@lr.org
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