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ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
Cruise Industry News
                    Special Report

 Zero
 Emissions Target
ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
Cruise Industry News

    2019 ZERO EMISSIONS
       TARGET REPORT
           Cruise Industry News
           Zero Emissions Report

              November 2018

                Publishers
           Angela Reale Mathisen
              Oivind Mathisen

                    Editor
               Oivind Mathisen

             Managing Editor
             Monty Mathisen
       monty@cruiseindustrynews.com

                   Design
                 MOVE Design

           Cruise Industry News
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     Copyright 2018 Cruise Industry News

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ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
ZERO EMISSIONS TARGET

                                   Table of

 Contents
                  4                                    6                                      9

            2                                     5                                   8
Zero Emissions   New Carnival      ‘Paying Off’       IMO                Taking              Thinking
Target           LNG Ships                            2020               Initiative          Differently
                 to Drive Fuel
                 Efficiency

                  11                                   13                                     18

            10                               12                                       16
Energy           Industry Is       Big Picture        Ongoing            Class of 2018       Staying Agile
Solutions        Leading the Way                      Debate

                  22                                   25                                     27

            20                               24                                       26
The Hydrogen     LNG vs.           Preparing For      Building Largest   LNG                 Turbine Power
Alternative      Liquid Fuels      LNG Bunkering      Hybrid Vessel      ORDERBOOK

                                                      Cruise Industry News: 2019 Zero Emissions Report       1
ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
ZERO EMISSIONS TARGET                             Cruise Industry News

Zero Emissions Target
               Z
                         ero emissions is the   alternative fuels, including LNG.           in port. Norwe-
                         cruise industry’s         New ships also have to comply with       gian authorities
                         long term ambition,    IMO Tier III NOx restrictions in ECA        have gone as far as
        both for water and air, and not only    areas and Tier II everywhere else.          to declare that their her-
    at sea, but also in port.                      Next comes the 2020 and 2025 Energy      itage fjords, that are popu-
    It may have started with wastewater         Efficiency Design Index requirements        lar with cruise ships, shall be
discharge regulations being introduced in       that new ships must be 20 percent and       emission free by 2025.
Alaska and the Baltic some 20 years ago,        30 percent more energy efficient, respec-      Longer term, the IMO has set
followed by air emissions restrictions in       tively, than a 2015 baseline.               2050 as the target date for a 50 percent
ports on the West Coast, leading to the            New ships are well on their way to       reduction in CO2 emissions from a 2008
first installations of shorepower and test-     meeting these targets already, resulting    baseline and that will require more than
ing of scrubbers.                               from more energy efficient powerplants,     low sulfur fuel and scrubbers.
    Since 2015, so-called SOx Emission          HVAC systems, lighting, galleys, hull          Thus, the cruise industry is actively
Control Areas established by the IMO            forms and hull lubrication, and more, in    engaged in developing technologies and
have restricted the sulfur content in ma-       addition to energy management plans         fuels to reduce emissions both at sea
rine fuels used to 0.1 percent, and by 2020     and more efficient operations. Advanced     and in port. So far, the focus is on LNG
IMO regulations puts a global sulfur cap        wastewater treatment systems clean the      as the “next” fuel, but work is also un-
at 0.5 percent for marine fuels (outside of     discharges into the sea. New develop-       derway advancing fuel cell and energy
ECAs), compared to a 3.5 percent lim-           ments also promise to turn garbage into     storage technologies and fuels such as
it today, which has been in effect since        energy that can be burned as fuel rather    hydrogen, methanol and ammonia for
2012; it was 4.5 percent before that.           than being incinerated and going up the     ship applications, as well as solar and
    In order to comply, ships will have         funnel.                                     wind power.
to operate on the low sulfur fuel or, if           At the same time, port communities          The path to zero emissions ships may
running on heavy fuel oil, use exhaust          are becoming more concerned about           be long, but the technology insiders are
gas cleaning equipment (scrubbers), or          air emissions from cruise ships when        confident the industry will get there. 

2         Cruise Industry News: 2019 Zero Emissions Report
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                                                                                                    The new and innovative
                                                                                                     LNG-fueled AIDAnova
                                                                                                   under the lights at Meyer
                                                                                                       Werft in Papenburg,
                                                                                                                   Germany.

New Carnival LNG Ships
to Drive Fuel Efficiency

W
             ith 11 LNG-fueled ships on        “AIDAnova is also significantly more      ships powered
             order, Carnival Corporation    efficient,” said Arnold Donald, CEO, on      by LNG both for
             has the largest orderbook of   the company’s third quarter earnings call.   our Princess brand
green ships in the cruise industry.            “In fact, she is over 20% more unit       to be delivered in 2023
   Later this year, the company’s German    cost efficient and over 35% more fuel        and 2025, bringing the total
brand, AIDA Cruises, will make history      efficient than the AIDA fleet average,       number of ships on order fully
when the new 183,900-ton AIDAnova be-       which bodes well for returns in the fu-      powered by LNG to 11.”
comes the first cruise ship in the world    ture,” he said.                                 Orders for LNG ships cover the
to be powered by LNG while both at sea         During the quarter, we completed          AIDA, Princess, Costa, P&O and Car-
and in port.                                contracts for two more next generation       nival brands. 

4        Cruise Industry News: 2019 Zero Emissions Report
ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
Cruise Industry News                                                                                    ZERO EMISSIONS TARGET

‘Paying Off’

“T                                                      You will see continued growth in our market fueled by
              oday, about 30 percent of
              our fuel has had the sulfur               increased capacity and the excitement surrounding
              removed before we buy it and
given the success of our AEP (advanced                  such high profile ships.
emission purification – scrubbers) systems,
we believe that this 30 percent figure will
not change materially even after the 2020
date,” said Richard Fain, chairman of Roy-       “Of course, it’s required a massive in-       to do to find ways to reduce our energy
al Caribbean Cruises, on the company’s        vestment in these AEP systems, but that          consumption. We already have the lowest
second quarter earnings call, commenting      investment is paying off in both fuel costs      levels in our industry and have partnered
on the 2020 IMO regulations.                  and environmental benefits.                      with the World Wildlife Fund to improve it
   “ In fact, for various technical rea-         “I shouldn’t leave this topic of fuel with-   even further. While AEP systems and other
sons, many observers believe that the         out mentioning our energy conservation           such measures are good, the best way to
new regulations could actually reduce         efforts because we are enormously proud of       reduce our environmental footprint is to use
our fuel costs once the regulations come      the work our teams have done and continue        less energy in the first place.” 
into force,” he continued.

                                                                       Cruise Industry News: 2019 Zero Emissions Report                  5
ZERO EMISSIONS TARGET - CRUISE INDUSTRY NEWSSPECIAL REPORT
ZERO EMISSIONS TARGET                         Cruise Industry News
              IMO                                              S
                                                                    tarting on January 2020, the International Maritime Or-
                                                                    ganization’s (IMO) new rules for sulfur emissions will
                                                                    come into force worldwide. The limit for sulfur in fuel

              2020
                                                      oil used onboard ships operating outside designated emission control
                                                   areas will be reduced to 0.5%.

                                     THREE WAYS TO COMPLY:
Scrubber
installation ready
for the Grand

                                                                                                                  1
Princess.                                             Install a Scrubber – an exhaust gas cleaning sys-
                                                      tem will reduce emissions from the smokestack,
                                                      enabling ships to meet IMO 2020 regulations
                                                      while still burning HFO. Scrubbers are said to cost
                                                      about $1.5 million each. Installation takes place
                                                      during drydocking, and on older ships, could cause
                                                      stability concerns.

                                                                                       MGO may be more
                                                                                       expensive and in short
                                                                                       supply come early 2020.

      2
                               Burn MGO – marine gas oil is a low sulfur fuel al-
                               ready widely used in emissions control areas. MGO
                               costs more than HFO and prices are expected to
                               rise significantly in 2020 as demand spikes. Of
                               20,000 ocean-going ships, only 3,000 to 4,000 are
                               projected to have scrubbers by 2020, which will
                               change fuel buying dynamics.

                                The 5,200-guest
                                      AIDAnova

                                                            LNG – a handful of cruise ships and con-
                                                            tainer ships will be LNG-powered by 2020,
                                                            with the clean burning gas meeting IMO
                                                            requirements. Supply chain issues remain
                                                                                                                 3
                                                            the biggest challenge

6         Cruise Industry News: 2019 Zero Emissions Report
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ZERO EMISSIONS TARGET                           Cruise Industry News
                                                                                          Bellona
                                                                                             “Combine this with coverage of
                                                                                          overcrowding in some of the most pop-
                                                                                          ular destinations, we decided to become
                                                                                          more active and encourage the ports, the
                                                                                          local communities and the infrastructure
                                                                                          providers to get more actively engaged,”
                                                                                          continued Strang.
                                                                                             “Although we have a very good re-
                                                                                          lationship with the ports, from time to
                                                                                          time it is clear that our message is not
                                                                                          getting out there.”
                                                                                             Thus Carnival has forged a rela-
                                                                                          tionship with Norway’s Bellona, an
                                                                                          environmental group working inter-
                                                                                          nationally. “We found that we share
                                                                                          many of the same objectives, to pro-
                                                                                          mote the use of clean technology, find
                                                                                          sustainable ways to reduce emissions,
                                                                                          and at the same time maintaining our
                                                                                          ability to carry out our business in a
                                                                                          clean fashion.
                                                                                             “As such we have set some targets
                                                                                          together, like zero emissions in port and
                                                                                          in pristine areas, which seems to us a
                                                                                          good way to kick start and accelerate
                                                                                          discussions that are already going on
                                                                                          in Norway.”
         Bellona’s Kalinka sailboat meeting                                                  Bellona may also be expected to play
         the Queen Mary 2 in Stavanger.                                                   a role on the public funding side, as most
                                                                                          ports do not have the financial resources
                                                                                          to pay for installations.

Taking Initiative
                                                                                          TV Coverage
                                                                                             In a TV interview this summer, Stein
                                                                                          Kruse, CEO and president of Holland
                                                                                          America Line Group, told a Norwegian
                                                                                          reporter that the company would be

E
                                                                                          willing to put money on the table for
        very summer Norwegian news                Enova, a Norwegian government           shorepower installations.
        outlets focus on air pollution from   agency providing public funding for            Also on Norwegian TV and respond-
        cruise ships, particularly in ports   cold ironing installations, claims that     ing to criticism, the port director for
where an inversion layer creates a very       funding shorepower for cruise ships         Oslo, Ingvar Mathisen, said that the port
visible ceiling of smoke.                     is too costly, considering the power        was only responsible for 5 percent of
   Taking a lead industry role to tackle      requirement and the limited seasonal        the CO2 emissions generated in the
the issue has been Carnival Corporation.      use. It has instead thrown the challenge    city, and that cruise ships in turn are
“We have had discussions with a num-          back to the cruise industry, with Eno-      responsible for only 4 percent of the
ber of ports about installing cold iron-      va’s CEO stating that it is the cruise      port’s emissions.
ing equipment, but the recent effort by       lines’ responsibility to clean up their        While Oslo provides shorepower for
Enova to fund shorepower in a number          own business.                               Color Line’s cruise ferries, Strang com-
of ports unfortunately does not cover             So far Enova has funded installations   mented that Carnival has not been suc-
cruise ships,” commented Tom Strang,          to the tune of nearly half a billion NOK    cessful in its discussions with the port.
senior vice president of maritime affairs     and has issued an invitation for more          A more typical TV report from an-
for Carnival.                                 applications.                               other port claimed that one ship can

8        Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                                                    ZERO EMISSIONS TARGET

                                                        Thinking
generate the same emissions in a day
as 13,000 diesel-powered cars.

Slow Start
   Said Strang: “We have to have dis-
cussions, we want to help the ports find
ways of solving the issue, and we can
share the experience we have from the
                                                        Differently
United States.”
   So far in Europe only Hamburg                                                                   “In the longer term, hydrogen may
and Kristiansand have shorepower for                                                           also be used as a fuel, if we can find
cruise ships, while an installation in                                                         solutions to transport and store it aboard.
Livorno has not been functional due                                                            There is research underway to combine
to “automation issues,” according to                                                           hydrogen with liquids, transforming
Strang.                                                                                        hydrogen to a liquid form for transpor-
   As for Kiel announcing plans to in-                                                         tation.”
stall shorepower, he said: “That was                                                               Hydrogen would most likely be for
a result of us telling them we wanted                                                          fuel cells, but may also have application
shorepower and how can we make that                                                            in turbines, according to Ullrich.
happen.”                                                                                           He added that some cruise lines are
   With more than 100 ships running                                                            testing small-scale applications of fuel
on liquid fuels in the Carnival fleet, he                                                      cells to see if the technology is reliable
said shorepower will be relevant for                                              Andreas      and can deliver what is expected.
many years to come.                                                                 Ullrich,       “If somebody starts, it will be a big
   Thirty-nine ships in the Carnival                                         global market     push for the technology. This is what
                                                                        leader, passenger
fleet are fitted for shorepower, accord-                                 ships and ferries     happened with LNG.”
ing to Strang, while more ships have                                     at Bureau Veritas         Meanwhile, energy storage systems

                                             T
the cabling in place.                                                                          are curtailed by high costs and low capac-
   “We have led the way,” he added,                   here is no single “best” solution        ity, according to Ullrich, who added that
“but found it very difficult to get ports             for the most energy efficient and        if the price goes down and capacity goes
to make commitments. Although today                   green ship going forward, ac-            up, they could be an attractive solution.
there is a lot more pressure from com-       cording to Andreas Ullrich, global mar-               New technologies are mostly being
munities on local operators and ports        ket leader, passenger ships and ferries           considered for newbuilds, but older ships
to clean up their act.”                      at Bureau Veritas. Instead, he defined            can also be retrofitted to some extent,
   Each ship needs from 5 MW to 12           medium-term solutions being scrubbers,            he said, including scrubbers and SCRs
MW in port, depending on the size of         catalysts (SCRs) and LNG, and longer              to comply with emissions regulations.
the vessel. Ship installations tend to       term with batteries and fuel cells, possi-            “I think the cruise industry is tak-
run around $1 million, while the recent      bly combined with LNG-fueled engines.             ing huge steps forward to become both
shoreside installation in Kristiansand          “We also have to think differently,”           greener and more efficient, but one has
was budgeted at about NOK 40 million         he said. “Today, powerplants consist of           to understand that it takes time to devel-
(about $5 million) through EU funding.       main engines generating energy in one or          op new technologies. We have ships on
                                             two spaces, but in the future there may be        order now for 2027 deliveries. They are
Other solutions                              more decentralized arrangements, maybe            designed with existing technologies, but
   A second-best solution is to burn         smaller energy storage units positioned           I think owners would be willing to make
LNG while in port; it has significantly      around the ship, supplying different con-         changes, if new technologies were to be-
less emissions than fuel oils.               sumers, supported by an excellent energy          come available. They want their ships to
   Strang said Carnival is also looking at   management system.”                               sail for at least 20 years and even more,
battery and fuel cell technologies, while       Ullrich continued: “LNG is current-            and by 2050 IMO regulations call for
making sure its ships reduce the hotel       ly the best option to reduce emissions,           a 50 percent drop in CO2 emissions.”
load to a minimum in port, running one       but it is a fossil fuel, and eventually we            As for a zero emission ship, Ullrich said:
instead of two engines, for example.         need to change to synthetic fuels, or fuels       “I am sure it will happen, but I am not sure
   He described the efforts as part of the   produced from renewables. We can also             when. Our over-riding goal must be zero
pathway to success: meaning eventually       create energy from wind and solar power.          emissions for both air and water.” 
zero emissions. 

                                                                    Cruise Industry News: 2019 Zero Emissions Report                       9
ZERO EMISSIONS TARGET                           Cruise Industry News
                                                                                           The Viking Sun
                                                                                           is powered by
                                                                                           MAN engines.

        MAN has reported a record orderbook for cruise ship engine
        orders, including the new Ritz-Carlton vessels.

                                                                                           fuel tanks become relatively larger the

Energy Solutions
                                                                                           smaller the vessel becomes.
                                                                                              “For that reason, we have had projects
                                                                                           that started with LNG but changed to
                                                                                           liquid fuel.”

                                                                                           Solutions

C
         hanging its name to MAN Energy      51/60 and the 35/44 dual fuel engines for        In terms of future powerplant solu-
         Solutions earlier this year means   large and smaller vessels, respectively.      tions, Tolgos said cruise lines have
         that MAN is now strategically           “Considering the typical operating        different options, including traditional
focused on comprehensive powerplant          profile of cruise vessels, the application    diesel engines running on HFO and using
solutions, including exhaust gas treatment   of our ECOMAP technology on CR en-            scrubbers and catalysts (SCRs) to meet
systems, technology for LNG-fueled ap-       gines can reduce fuel consumption by an       environmental regulations; MGO and
plications, and hybrid solutions with en-    additional 1 to 2 percent,” Tolgos noted.     catalysts; or LNG. However, LNG-fu-
ergy conversion and storage systems, and         “The 45/60 CR engines are more so-        eled ships might still need catalysts as
related automation systems, according to     phisticated so the capital expense is high-   they also carry MGO as back-up fuel,
Sokrates Tolgos, head of cruise sales and    er, but the payback comes from reduced        although the system will not be active
tendering, MAN.                              fuel consumption.”                            when running on LNG.
   “We are going from being a pure en-           He explained how common rail and             In addition, he said that oil companies
gine and turbo machinery company to a        ECOMAP can be used to adapt each              have promised to supply new fuel types
systems supplier,” Tolgos said.              engine’s performance characteristics,         within the 0.5 percent sulfur cap required
   “We have taken the first steps already    optimizing the fuel economy of the            globally by 2020, but the question is how
with our acquisition of the marine fuel      powerplant.                                   much the new fuel will cost. Tolgos’ ex-
gas storage and supply systems of former         Common rail and ECOMAP are fea-           pectation is that a new blended fuel will
Cryo of Sweden, and we have entered into     tures for liquid fuel engines, while a gas    be more like a diesel-fuel than a residual
a partnership with Canada’s AKA, which       injection system will be used for dual        fuel, hence refinery economics will drive
is an electric solutions provider.”          fuel engines.                                 the cost up to be closer to distillate than
                                                                                           residual fuel.
Engine Series                                LNG vs. Liquid Fuels                             Compatibility of these new fuel types
   Tolgos said that today MAN is de-            Big newbuilds are looking in the LNG       with existing engines is another factor
livering the whole technology range of       direction, Tolgos said, but a large per-      that must be considered to safeguard
powerplants and systems from heavy fuel      centage of smaller ships are still looking    reliable operation of the plant.
oil to LNG.                                  toward liquid fuel.                              Meanwhile, he added, many experts are
   System offerings include the 48 engine       He explained: “The feasibility of using    expecting to see HFO prices drop signifi-
series with common rail (CR) injection       LNG as a fuel has much to do with the         cantly against diesel/distillate type fuels
technology for big cruise ships operating    size of the vessel.                           in 2020 when the sulfur cap is introduced.
on oil-based fuels, as well as the 45/60        “When you go from big to small, the           Tolgos said that he definitely expects
CR, which was announced last year, and       power demand does not decrease at the         cruise ships to meet Phase 3 of the EEDI
the 32/44 CR series for smaller ships.       same rate, and the autonomy range does        (Energy Efficiency Index) in 2025. “We
   For LNG-fueled ships MAN offers the       not decrease. That means that the LNG         have more efficient engines, which in

10       Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                                                    ZERO EMISSIONS TARGET

                                                         Industry Is
                                                         Leading the Way
                                              “T
                                                             he global shipping fleet can
                                                             look at the cruise industry to
                                                             lead the way for more en-
                                              ergy efficient ships” said Ginger Garte,
                                              environmental and sustainability director,
                                              Americas Marine & Offshore, Lloyd’s
         The 45/60 CR engines                 Register.
         are more sophisticated                   “The cruise lines are not waiting for
                                              regulations, but moving ahead, imple-
         so the capital expense               menting fuel saving technologies and
         is higher, but the                   testing new technologies that are prom-
         payback comes                        ising efficiencies. Although they can be          Monitoring performance ship-wide from
                                              small, they all add up.”                        the advanced engine control room aboard
         from reduced fuel                        Garte continued: “The cruise industry
                                                                                                   the Carnival Vista, which carries LR’s
                                                                                                                           ECO Notation.
         consumption.                         recognized more than a decade ago that
                                              climate change would be the biggest issue           Even casual dining venues contribute by
                                              facing maritime industries. And they are        eliminating table cloths, that in turn saves
combination with other factors, such as       tackling it in a multitude of ways, from        on water for washing. In addition, the latest
more efficient hull design, reduced ener-     advancing exhaust gas cleaning systems          generation of washing machines use 65 per-
gy consumption by various consumers,          to looking at alternative fuels that are        cent less water, according to Garte, who also
like HVAC and lighting, will help cruise      effective in meeting sulfur requirements.       noted better energy management of galleys,
ships comply.”                                    “The biggest cruise companies are           more efficient ice makers and dish washers.
                                              investing in both scrubbers and LNG.                Also critical is how the ships are operated,
Lifecycle Cost                                Although LNG may be a temporary                 significant fuel savings and reduced emis-
   “The number of installed engines and       measure, restricted by lack of bunkering        sions can be gained by just-in-time arrivals,
cylinders are not only related to the ves-    capabilities around the world, and not          trim optimization, weather routing and more.
sel size and speed, but also to hotel load    reaching the level needed to decarbonize.           “All energy efficiency programs are
requirements and efficient engine loads,          “By 2030, the industry will need a          looked at and improved for every new-
redundancy and safe return to port,” Tol-     heavier lift, like methanol as a fuel, fuel     build,” Garte said.
gos said. “For ships below 50,000 tons, it    cells or other solutions that are not cur-          The latest generation of newbuilds are up
would be difficult to find space for more     rently available.”                              to 20 percent more efficient than the previ-
than four main engines, but larger ships          Looking at how the cruise industry has      ous generation and thus the cruise lines are
tend to have from four to six engines.        been performing historically, Garte said        well on their way to meet the 2025 Phase 3
Looking at it from a lifecycle cost per-      it has been very competitive in terms of        requirement of the Energy Efficiency Index
spective, I would say that five to six main   energy efficiency.                              stipulating that new ships must be 30 percent
engines are the best solution.”                   Efforts include redesigning vessels for     more efficient compared to a 2015 baseline.
   While offering liquid fuel engines,        better hull hydrodynamics including air             And in order to reach the IMO target
LNG derivatives, and also researching         lubrication, welds around sea chests and        of 50 percent reduction of CO2 by 2050,
energy storage systems, Tolgos said the       coatings, as well as better aerodynamics        Garte said the first zero emission will have
next evolution may be fuel cells, especial-   for the superstructure.                         to enter service around 2030.
ly if LNG can be used in fuel cells. This         “By reducing the friction between the           Meanwhile, Carnival Corporation stated
would also offer a completely new per-        hull and the water, we have verified that       in its 2017 sustainability report that it has
spective on how to utilize space in future    air lubrication can reduce fuel consump-        achieved a 26.3 percent reduction in CO2
ship designs as fuel cells, in principle,     tion by up to 5 percent,” she said, “and        emissions, three years ahead of its 2020
enable the design of decentralized on-        consequently air emissions.”                    deadline. 
board generation of energy and power. 

                                                                      Cruise Industry News: 2019 Zero Emissions Report                    11
ZERO EMISSIONS TARGET                          Cruise Industry News

      The Harmony of the Seas

Big Picture
I
     ncreasing energy efficiencies and          Furthermore, Marttinen said that Wärt-     a 50 percent reduction in greenhouse gas-
     reducing emissions require a com-       silä, has been running tests with metha-      es by 2050 and eventually going to zero.
     bination of an optimized powerplant     nol, while also doing development work            “Meanwhile, LNG is a perfect bridge.
and other energy consumers aboard, in        with batteries and fuel cells.                It is available in multiple locations, and in
addition to ship operations, including          “The combustion engine itself has          the Caribbean, for example, if you look at
navigation and itinerary planning, ac-       seen huge improvements over the past          island energy needs, LNG can also play
cording to Vesa Marttinen, director of       100 years,” he added, “and continues to       a key role in generating energy ashore.”
cruise, ferry and superyachts at Wärtsilä,   improve step by step. The question now            Hybrid solutions are also entering the
a major powerplant and systems supplier      becomes how much effort it will take to       picture, according to Marttinen, with
to the cruise industry.                      achieve the next steps, and if the end-user   powerplant configurations that include
   He underscored that many variables        is willing to pay the price, or if we can     batteries or fuel cells. He noted that test-
play important roles, starting with the      achieve similar gains doing something         ing of fuel cells on ships already started
propulsion and hotel consumers.              else with lower capital costs. In the end,    more than 10 years ago.
   To help minimize fuel consumption         the customer must justify the business            “Technology, however, is only an en-
and consequently emissions, he added         case.                                         abler for operations,” he explained. “You
that fuel consumption, energy usage and         “Yet, it is our role as a technology       need to look at both the machinery and
other operating data must be shared be-      company to continue to push forward.”         operations to get the total picture.”
tween the vessel, the shoreside marine
department and the engine and equipment      Powerplants                                   Zero Emissions?
suppliers.                                      What is the ideal powerplant today?           Will there be a zero emissions ship in
                                             “Let me answer this way,” Marttinen said.     the future? ”One day,” answered Martti-
Fuel Options                                 “From what we have seen in the past, the      nen, “and it will be the result of multiple
   Another aspect is the fuel; and power     steam engine was introduced 200 years         developments.”
generation can use HFO in combination        ago, but it took 80 years before steam           Meanwhile, new versions of older
with scrubbers to meet emission require-     surpassed sails, so we can also assume it     technologies are also being tried, such
ments, or MGO, or LNG. In addition, oil      will take some time before LNG surpass-       as rotor sails, which he said are 100 years
companies are developing low-sulfur HFO      es current fuels. Also forcing change and     old, but are now being optimized with
to meet future emission requirements.        development is that the IMO is requiring      new materials and computers. He said

12       Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                                                ZERO EMISSIONS TARGET

Wartsila on

                                                                                 Ongoing
display, powering
the 227,625-ton
Harmony of the
Seas.

                                                                                 Debate

                                                                                                                                 JENS ERIK WEGNER
he can also envision using wind turbines to generate power
while in port.
   “The key is to use technology to improve the assets and the                                                         Connecting to
operations, and while this usually involves the next generation                                                        shorepower in
                                                                                                                           Hamburg.
of vessels, much can also be done with existing ships.

                                                                     N
   “Every time we reduce energy consumption we reduce
greenhouse gases.                                                              orway’s Kristiansand is the second European port
   “The trend has been that ferries are usually first to implement             to offer shorepower to cruise ships after its 16 MW
new technologies and then cruise ships.”                                       installation came on line in September, thanks to an
   Marttinen also expects to see more actors getting involved        EU grant.
in terms of port operations and vessel traffic control.                 The only other European port offering shorepower is Ham-
   “You can say that sustainable operations start with the equip-    burg, at its Altona Terminal, while Livorno expects to be op-
ment on the ship, then you have the operation of the ship, the       erational by the end of the year.
operation of the fleet, and also the operation of ports. Future         A spokesperson for the Port of Hamburg said that prepara-
ports may also have their own powerplants, using different           tions were underway for a feasibility study to install shorepower
sources of energy, and selling electricity to the ships.             at all the cruise terminals. She also said that the port was in
   “There are many different avenues moving forward.”                discussions with MSC and other cruise lines for shorepower
                                                                     and LNG bunkering.
Development                                                             In addition, Kiel has announced that it is planning a shore-
    “We have been sort of vegetating in the marine leisure mar-      power installation at its Ostseekai terminal for cruise ships.
ket,” Marttinen continued. “We have these assets that go 20             Meanwhile, AIDA Cruises also has a hybrid solution, with
knots, but is that needed? What if we could have zero emissions      the AIDAperla and AIDAprima running on LNG supplied
and go at 10 knots from port to port? Does a ship have to call       by truck while in port in Hamburg, Rotterdam, Le Havre,
at a port every day? What about every other day? The cruise          Southampton and Zeebrugge, as well as in Barcelona for the
lines would also generate more onboard revenue. In addition,         AIDAprima, and in Madeira during the winter. According to
if passengers are sourced in homeports and nearby areas with         AIDA, Marseille, Civitavecchia and Kiel are also preparing
no flights, the operation would be even more sustainable.            to supply LNG for the dual fuel ships, while the line is in the
    “Developing assets and operations is what it is all about,       discussion stage with Palma de Mallorca.
and this is where we can give a helping hand.” 

                                                                     Cruise Industry News: 2019 Zero Emissions Report                               13
ZERO EMISSIONS TARGET                                      Cruise Industry News

Exclusive Club
    The only other operating shorepower in-
                                                    SERGIO FERREIRA

stallations for cruise ships are in the United
States and Canada – on the West Coast in
Juneau, Long Beach, Los Angeles, San Di-
ego, San Francisco, Seattle and Vancouver
and on the East Coast in Montreal, Halifax
and New York’s Brooklyn terminal.
    Additional shorepower facilities in
North America and Europe are dedicated
to ferries, container ships, tugboats, fishing
vessels and offshore vessels and rigs.
    Longer term, Peter Castberg Knudsen
of PowerCon, the Danish company that has
installed the facility in Kristiansand, said he
envisions shorepower to supply hotel con-
                                                  LNG being
sumption aboard when cruise ships are in          supplied by truck
port throughout Europe and also for charging      in Madeira.
applications for battery installations.
    Also on a broad European scale, so-              According to MedCruise, Livorno and           ects are reported to be underway at Wusong
called Trans-European Transportation              Varna have shorepower installations for          in Shanghai and Qingdao in Shangdong,
Network core ports will need to provide           cruise ships, and Marseille for ferries.         according to Cavotec, a supplier of shore-
alternative infrastructure such as shore-            Giovanni Spadoni, technical and com-          power cable management systems.
power before the end of 2025, according           mercial director for the Port of Livorno,           Down Under, the Ports of Auckland
to EU regulations, Castberg Knudsen said,         said that its installation has been tested       announced last year that they would
unless there is no demand and the costs           on a naval vessel, and the port is in the        pursue plans for shorepower. However,
are disproportionate to the benefits.             process of verifying whether Holland             CLIA Australia countered that a key strat-
    He added that cruise ports in Europe have     America Line ships can plug in. He said          egy of the cruise lines is the adoption of
so far been reluctant to install shorepower       he expects the plant to be fully opera-          exhaust gas cleaning technology, which
due to the high investment cost combined          tional by the end of the year.                   in combination with cleaner fuels, will
with relatively low usage in addition to many        In China, Shenzhen has a shorepower in-       mean that the usefulness of shorepower
ships not having the equipment to connect.        stallation for cruise ships, while other proj-   will decline over time.

14        Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                                                     ZERO EMISSIONS TARGET

                                                    In Vancouver, the federal and provin-       late September deadline, while also an-
                                                cial governments funded two-thirds of the       nouncing plans for yet another invita-
                                                installation, while Holland America Line,       tion in January 2019 with a March 2019
                                                Princess Cruises and the port authority         deadline.
                                                funded the other third.                            So far, the agency has awarded half
                                                    A spokesperson said that the original       a billion NOK in grants for shorepower
                                                $9 million investment made in 2009 will         installations.
                                                be fully amortized by the end of the year
                                                (2018).                                         Pollution Issues
                                                    In Montreal and Halifax a combination           Paulsen said that the issue with cruise
                                                of funding from the federal and provincial      ships is local pollution when ships are in
                                                governments, as well as the port author-        port, and that today there is an acute need
                                                ities, paid for the installations.              to improve the air quality. LNG will help
                                                    The project costs were estimated at $10     by reducing emissions and so will new
             Two of eight containers            million and $11 million, respectively.          ships that have to comply with the latest
            housing the shorepower                                                              IMO requirements, compared to older
        system, including frequency
           converters, transformers             Cost Effective?                                 ships that may be exempted.
                and switchgears for                 Other cruise ports in Norway have ap-           Where clean (hydroelectric) power is
                       Kristiansand.            plied for grants from Enova, a Norwegian        not available, Castberg Knudsen’s ideas
                                                government agency working to improve            include using wind turbines to compete
                                                energy efficiencies and reduce emissions,       with fossil fuels in terms of producing
                                                but have been turned down, because the          electricity at the lowest cost that can even
Funding                                         agency considers cruise ship usage to be        make a shore system profitable, he said,
   Kristiansand has been able to install        seasonal and not cost effective.                without external funding.
shorepower thanks to a 4 million euro               This is partially because of the rela-          Paulsen added that even with coal-
grant from the EU.                              tively low investment for supplying 1 to        fired powerplants, it makes sense to move
   Hamburg’s installation was financed          2 MW of power compared to a system              the emissions away from the populated
partially by the EU and the City of Ham-        for a cruise ship at 16 MW.                     port area, and that it is easier to clean the
burg.                                               The Kristiansand installation is 16 MW,     emissions from one powerplant rather
   In North America, Los Angeles paid           6.6 – 11 kV, 50-60 Hz. It was originally in-    than several ships.
for its own installation. A spokesperson        tended for Copenhagen, but for unknown
said that the port is recovering the invest-    reasons, that city pulled out of the project.   Public Reaction
ment through a passenger head tax and               Ferries, coastal vessel traffic, fishing       Meanwhile, some cruise ports are fac-
that the cruise lines pay for the electricity   vessels and oil rigs in port for mainte-        ing negative public reaction on heavy
they use.                                       nance have been favored, said Jan Kjetil        traffic days due to the visible exhaust that
   For San Diego, a spokesperson said           Paulsen, senior adviser on shipping at the      can literally “cover” a town or a fjord.
the system was paid for by a combina-           Bellona Foundation, an environmental               In Norway, one local politician even
tion of grant funding and money from            organization based in Norway.                   exposed himself to passengers as a form
the port’s capital improvement program.             Hurtigruten commented that it needs to      of protest.
   Carnival Corporation funded the in-          stay in port for more than 45 minutes for          The Norwegian government has re-
stallation cost in Seattle.                     a shore connection to make sense, which         cently announced that it will make its
   San Francisco, which completed its           would eliminate many of its ports of call.      World Heritage fjords zero emissions
installation in 2010, was able to take          It also noted that Bergen is the only port      zones by 2026, including Geiranger, a
advantage of state grants that were no          where it can presently use shorepower.          popular cruise destination.
longer available once California made           Not all of its ships can plug in yet, how-         That may mean that these fjords will
shorepower mandatory in 2014.                   ever, with shipboard installations to be        be off limits to large cruise ships unless
   For the Brooklyn Cruise Terminal,            completed by 2021 or earlier, according         they can come up with new power solu-
a spokesperson for the New York City            to a spokesperson.                              tions very quickly, according to Bellona’s
Economic Development Corporation said               Enova recently awarded NOK 51               Paulsen.
the $15 million spend on the onshore in-        million in grants to 11 Norwegian ports,           He added that it is in the interest
frastructure was funded with about $12          financing up to 75 percent of the instal-       of the industry and the ports to reduce
million from the port authority and nearly      lation cost of shorepower.                      emissions. What tourist would pay to
$3 million from the Environmental Pro-              The agency has since issued another         visit destinations covered by clouds of
tection Agency.                                 invitation for grant applications with a        exhaust, he asked. 

                                                                        Cruise Industry News: 2019 Zero Emissions Report                 15
ZERO EMISSIONS TARGET                             Cruise Industry News
                                                             Cruise Line: CARNIVAL
                                                                 Ship: HORIZON
                                                                     Tonnage: 135,000
                                                                         Capacity: 4,000
                                                                            Yard: FINCANTIERI

     Cruise Line: ROYAL CARIBBEAN
                     Ship: SYMPHONY
                        Tonnage: 227,625
                              Capacity: 5,400
                                Yard: CHANTIERS

                                                             Cruise Line: NORWEGIAN
                                                                 Ship: BLISS
                                                                     Tonnage: 164,600
                                                                         Capacity: 5,200
                                                                             Yard: MEYER

Class of
                               2018
           Cruise Line: SEABOURN
                      Ship: OVATION
                        Tonnage: 40,350
                               Capacity: 604
                              Yard: FINCANTIERI

                                                             Cruise Line: MSC CRUISES
                                                                 Ship: SEAVIEW
                                                                     Tonnage: 154,000
                                                                         Capacity: 4,140
                                                                            Yard: FINCANTIERI

                  Cruise Line: TUI
                 Ship: MEIN SCHIFF 1
                       Tonnage: 110,000
                             Capacity: 2,900
                             Yard: MEYER TURKU

16        Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                        ZERO EMISSIONS TARGET

                                                          Cruise Line: PONANT
                                                              Ship: LE LAPEROUSE
                                                                  Tonnage: 10,000
                                                                      Capacity: 180
                                                                          Yard: VARD

    Cruise Line: VIKING OCEAN
              Ship: VIKING ORION
                     Tonnage: 47,000
                            Capacity: 930
                           Yard: FINCANTIERI

                                                          Cruise Line: PONANT
                                                              Ship: LE CHAMPLAIN
                                                                  Tonnage: 10,000
                                                                      Capacity: 180
                                                                         Yard: VARD

       Cruise Line: CELEBRITY
                      Ship: EDGE
                  Tonnage: 129,500
                         Capacity: 2,900
                            Yard: CHANTIERS

Cruise Line: HOLLAND AMERICA
         Ship: NIEUW STATENDAM
                    Tonnage: 99,000
                         Capacity: 2,660
                          Yard: FINCANTIERI

                                                          Cruise Line: MYSTIC
                                                              Ship: WORLD EXPLORER
                                                                  Tonnage: 9,300
                                                                      Capacity: 200
                                                                         Yard: WEST SEA

             Cruise Line: AIDA
                 Ship: AIDANOVA
                   Tonnage: 183,900
                          Capacity: 5,200
                                Yard: MEYER

                                               Cruise Industry News: 2019 Zero Emissions Report   17
ZERO EMISSIONS TARGET                              Cruise Industry News
                                                                             Another Mein       built, the yard will have capacity to con-
                                                                              Schiff under
                                                                             construction
                                                                                                struct 190,000 tons every eight months,
                                                                                in Finland      with 17,000 employees pitching in.
                                                                                                   The obvious hitch to hiring all these
                                                                                                people is not only do they need to be
                                                                                                skilled, they also need to speak the yard’s
                                                                                                operating language, Finnish – one of the
                                                                                                world’s less common tongues. To meet
                                                                                                these goals the yard has undertaken a
                                                                                                massing staffing outreach, retraining
                                                                                                internal workers displaced by robotics,
                                                                                                as well as attracting new talent.
                                                                                                   The yard has an agreement with the
                                                                                                government to re-educate the unem-
                                                                                                ployed to be welders. After a six-month
                                                                                                training course, there is a standing job
                                                                                                offer from the yard.

Staying Agile
                                                                                                   The school also has transfer-of-skills
                                                                                                trainings where architects and engineers
                                                                                                from the residential home construction sec-
                                                                                                tor can be retrained to design and build
                                                                                                ships. The training extends to suppliers and
                                                and find ways to improve things. We can-        subcontractors wanting to train their people.
                                                not sit still, because our competitors – our       The staffing uptick is part of the yard’s
                                                state-owned competitors in France, Italy        200 million euro investment in infrastruc-
                                                and China – are certainly not sitting still.”   ture improvements, new technologies,
                                                    The Meyer pledge – to improve the           and an expanded design team that will
                                                family business for the next generation         reduce reliance on outside contractors.
                                                to inherit – requires long-term planning:       That said, Meyer praised his supplier and
                                                Grow when the climate is right and be           contractor network.
                                                ready for harsher conditions.
                                                    A new 120-meter crane went online this      Reliability
                                                summer. The monstrous blue staple-shaped           About 800 subcontractor companies

               B
Jan Meyer,                                      tower on wheels can lift 1,200 tons – twice     work on each ship, so many that the city of
CEO                     lue and orange cov-     that of the yard’s previous crane.              Turku is considering zoning an industrial
                        eralls and bright                                                       park outside the shipyard for them. If it’s
                        yellow hardhats         Ramp Up                                         built, Meyer would see his subcontractors
       strolled across Meyer Turku’s               The plan for Meyer Turku is aggres-          each day when bicycling in to work from
   vast campus one recent afternoon.            sive and somewhat audacious. When               the city center.
An abnormal string of sunny days had            Meyer Werft took control in 2014, the              “We are a big economic factor,” he said
all of Finland in a jolly mood. With TUI        yard could complete a single 100,000-           of the relationship with the city.
Cruises’ new 111,500-ton Mein Schiff            ton ship every year, with about 5,000              The Meyer family, who started their
2 about to touch water for the first time       employees working. In 2016 and 2017             shipbuilding dynasty in 1795, found
and Costa’s Smeralda laying in semi-con-        that increased to 7,000 employees able          something of a kindred spirit in the Finn-
structed sections nearby, Meyer Turku           to build 150,000 tons a year.                   ish yard. Founded in 1737 as Fithie/Åbo
CEO Jan Meyer had to be smiling too.               Currently, the 2018 and 2019 capacity        Gamla Skeppswarf, the Turku shipyard
    While an orderbook stretching into          projects 9,000 employees able to com-           consolidated, merged, or changed own-
2024 is good news, the seventh-genera-          plete 180,000 tons a year. Moving for-          ership at least 25 times before Meyer
tion shipbuilder sees it as a call to action,   ward, Meyer Turku wants to add 6,000            Werft’s purchase. The roots are deep and
not a time to get comfortable.                  more employees by 2021, so 15,000               wide, encompassing a broad network and
    “We have good times now and some            workers could build a 190,000-ton ship          impressive longevity.
stability, but we really need to use these      every 10 months.                                   “When we came to Turku we found
good times to prepare for the future,”             The ultimate goal is that by 2022,           a very unique way of working together
Meyer said. “We have to look at ourselves       when Royal Caribbean’s first Icon ship is       as a cluster has been developed,” Mey-

18        Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                                                        ZERO EMISSIONS TARGET

                                                                                                   ing and building a ship is all about find-
                                                                                                   ing the best compromise for contradictory
                                                                                                   requirements,” Meyer said. “Cruise-ship
                                                                                                   building is a lot about collaboration. So
                                                                                                   we have cooperation with our customer’s
                                                                                                   architects. The customer has a concept
                                                                                                   for a restaurant. What they want to serve
                                                                                                   there. How they want to utilize the space.
                                                                                                   And of course they don’t want to see any
The                                                                                                pillars whatsoever. For us, pillars are very
110,000-                                                                                           good for the steel structure, but not very
ton Mein                                                                                           good for internal visibility. So we need to
Schiff 2 under
                                                                                                   find a good compromise between these
construction in
Turku, slated for a                                                                                contradictory aims.”
spring 2019 delivery                                                                                   He gave the example of Mein Schiff’s
                                                                                                   50-meter wide diamond-shaped window
                                                                                                   structure. The glass wall at the aft of the
The LNG-                                                                                           ship needed to be stable but without cum-
powered Costa                                                                                      bersome, view-blocking support pieces.
Smeralda will
be delivered
                                                                                                   Furthermore, the ship will twist ever so
from the yard                                                                                      slightly because of propulsion and waves.
next autumn.                                                                                       “Even if there was a shift of just a few mil-
                                                                                                   limeters the stress on the windows would
                                                                                                   be enormous.”
                                                                                                       Meyer’s design team had to perform an
          We have to look at ourselves and find ways to improve                                    engineering feat. Through rigorous com-
                                                                                                   puter modeling and testing they were able
          things. We cannot sit still because our competitors – our                                to predict vibrations. They were able to
          state-owned competitors in France, Italy, and China – are                                remove most of the pillars, allow for stress
          certainly not sitting still.                                                             reduction on the windows, and at the same
                                                                                                   time keep the room quiet and scenic.
                                                                                                       “The ability to predict it allows us to
er recalled. “Sometimes I get questions,        tainability, visually pleasing spaces, etc.        tell the architect, ‘Okay, we can remove
like, why did you choose Finland to help a      While these things are important, so too is        that pillar.’ And so it’s visually appealing
shipyard, why did you not choose Norway         reliability. If, late in the process of building   and still serves as a quiet space. And, of
or Denmark or Sweden or somewhere.              a ship, there is uncertainty that a design         course, we need to do it together with a
Actually, that’s not the point. The point is    or concept will work, the customer has             turn-key outfitter that’s working in the
here we have a heritage of 200 years we         every right to be disappointed. “This kind         aft part of the ship and is actually build-
can build on. We cannot sleep on it but         of thing is unacceptable,” Meyer said.             ing it. And then it all needs to fit on the
we can build on it. And that’s important.           “What’s often overlooked is the aspect         timeline,” Meyer said. Building the same
That’s the kind of starting advantage that      of reliability. That is something we should        class of ship several times gives Meyer’s
is unique to us and not our competitors.        maybe focus more on in cruise-ship build-          team a chance to experiment and perfect
We can use it. And also, we are permitted       ing. That is a real value,” Meyer said. “This      designs. “It allows us to try out our com-
to improve this collaboration and really        reliability, aside from our ability to offer a     puter models. The computer helps a lot,
bring this supplier collaboration to the next   competitive package, innovation and a rea-         but does it reflect reality? That’s the im-
level. We also need to try as best we can       sonable price, is an important factor in why       portant question.”
to get long-term visibility. We want to get     we have an orderbook going into 2024.”                 Revamping the shipyard by ramping up
the orders ready so they can plan from the                                                         staffing and tonnage building capabilities,
supplier side. Also, with this sort of long-         Meyer said it’s difficult to discuss          all while remaining innovative and price
term visibility we can develop processes        innovations because his cruise line cus-           competitive – all in a five-year window –
and build teams.”                               tomers almost always want to be the first          is similar to how Meyer described Mein
   The cruise industry is always excited        to reveal what’s new. It’s easier to discuss       Schiff’s giant glass diamond windows.
about innovation: efficiency, maneuver-         the process.                                           “It looks simple. That’s how it should be.
ability, amenities, environmental sus-              “It’s about finding solutions. Design-         But it’s actually difficult to implement.” 

                                                                         Cruise Industry News: 2019 Zero Emissions Report                    19
ZERO EMISSIONS TARGET                             Cruise Industry News

The Hydrogen Alternative
         I                                              Future ships may be
              n order to reach IMO’s 2050                                                      Hyon is a joint venture between Nel
              goal of 50 percent CO2 re-                                                    Hydrogen, Hexagon Composites and
              duction in emissions from
                                                        larger because they                 Powercell of Sweden, thus offering a
shipping, Tomas Tronstad, managing di-                  will need bigger tanks              one-stop hydrogen and fuel cell solution,
rector at Hyon, said he sees two solutions:             to accommodate                      targeting marine industries, including
Batteries for ferries and short-sea oper-                                                   cruise lines.
ators; fuel cells and hydrogen for larger
                                                        new fuels, such as
powerplant installations, like cruise ships.            hydrogen, methanol                  Green Potential
   “I expect the shipping fleet to look                 and perhaps ammonia,                   There are generally two ways to pro-
very different in 2050,” he said, “and                                                      duce hydrogen today, Tronstad explained,
I don’t expect to see the ships that are
                                                        NH3, which has no                   with water (HO2) or natural gas (CH4)
sailing today.                                          carbon content.                     being the raw materials.
   “Future ships may be larger because                                                         While using natural gas will mean
they will need bigger tanks to accom-                                                       CO2 emissions from the production; us-
modate new fuels, such as hydrogen,            a way of stimulating the development         ing power from renewable sources to split
methanol and perhaps ammonia, NH3,             of the hydrogen industry in the country.     water in an electrolysis process means no
which has no carbon content.”                     Hydrogen-run fuel cells are common        CO2 and the resulting hydrogen can be
                                               on buses and trucks, he said, with the       considered renewable.
Ferries First                                  hydrogen stored in pressurized tanks.           “NEL, only participates in projects
   Based in Norway, Tronstad said there           Since hydrogen is very light, the tanks   based on renewable energy sources,”
are many hydrogen-fueled ferry projects        are pressurized at 700 bar containing 5      Tronstad added.
as the Norwegian authorities have begun        kilos of gas giving an average car a range      He said hydrogen can be considered a
to stipulate zero emission vessels in cer-     of some 500 km. He said the tank size        “difficult” gas, as it is very light and has
tain areas, and are requiring hydrogen as      was comparable to a standard gas tank.       very small molecules, but taking that into

20       Cruise Industry News: 2019 Zero Emissions Report
Cruise Industry News                                                                                ZERO EMISSIONS TARGET

                                                                                                      Fuel cells should not
                                                                                                      be a showstopper for
                                                                                                      large hydrogen cruise
                                                                                                      vessels.

          When you pay for power, you are also paying for the grid,
          for the infrastructure. We will produce hydrogen using
          renewable energy, but not from the grid. We will produce
          the hydrogen where the power is being generated, and
          then transport the hydrogen to where it will be used. This
          will reduce costs significantly.

account, it is not difficult to design safe   PEM Fuel Cells                                   Explained Tronstad: “When
systems. He said that hydrogen is very           Tronstad explained that PEM fuel cells     you pay for power, you are also
predictable gas and does not pose any         are the standard already used in motor        paying for the grid, for the infrastruc-
greater risks than gasoline or diesel fuel.   vehicles. He described them as very dy-       ture. We will produce hydrogen using
    Thus, Hyon has received approv-           namic, operating effectively at different     renewable energy, but not from the grid.
al-in-principle from DNV-GL for its mod-      loads.                                        We will produce the hydrogen where the
ule-based fuel cell solutions, adapted for       “At PowerCell/Hyon we have devel-          power is being generated, and then trans-
maritime use. The approval builds on the      oped the world’s lightest and most com-       port the hydrogen to where it will be used.
MS-100 hydrogen PEM (Proton Exchange          pact marine fuel cell solutions,” he said.    This will reduce costs significantly.”
Membrane) fuel cell system from Power-        “So the fuel cells should not be a show-         Meanwhile, in the United States Nikola
Cell for general application in ships.        stopper for large hydrogen cruise vessels.”   Motor Company is rolling out infrastruc-
    The approval covers smaller mod-             What needs to be done next is to pro-      ture for hydrogen production and filling
ules of just a few hundred kilowatts to       vide bunkering opportunities and to bring     stations (from Nel) for trucks. Maritime
multi-megawatt units.                         down costs.                                   bunkering stations may be next. 

                                                                     Cruise Industry News: 2019 Zero Emissions Report              21
ZERO EMISSIONS TARGET                             Cruise Industry News
The AIDAnova will be powered by dual-fuel
powerplants from Caterpillar Mak.

            LNG vs.
            Liquid Fuels                                                                       “Every cruise operator is hyper-fo-
                                                                                            cused on every aspect of the environ-
                                                                                            mental impact of their operation from

               I
                                                                                            bilge water to wastewater, air emissions.”
                    deal powerplant solu-               Every cruise operator
                    tions depend on op-                                            Data Analytics
                    erational profiles and              is hyper-focused on           Caterpillar Mak is also focused on the
       areas of operation, according to                 every aspect of the        digital realm, according to Shock. “Our
    John Shock, responsible for the cruise              environmental impact of data analytics system captures data that
and ferry market for Caterpillar Mak.                                              allows the shipowner to operate the en-
   “LNG is a very good solution,” he                    their operation from bilge gines more efficiently, minimizing fuel
continued, “and we are seeing both the                  water to wastewater, air consumption, making sure that energy is
cruise and ferry markets moving faster to               emissions.                 being produced efficiently as well, and
LNG than other shipping segments. The                                                       schedule optimized, condition-based
progress has been huge, but gas is still                                                    maintenance.
not universally available, it carries higher   ther gains would most likely be small and       “We also have an advisory power man-
capital costs and has some different per-      incremental, and that more efficiencies      agement system, which is a multi-engine
formance characteristics that shipowners       would come from systems and operating        optimizer, managing different loading on
nevertheless are able to offset against bet-   procedures.                                  several engines at the same time.
ter environmental performance.”                   “The diesel engine can be more effi-         “It (environmental regulations and
   When the first LNG-fueled cruise            cient,” he said, “but we are restrained by   technology development) is not going to
ship, the AIDAnova, enters service later       emissions. Most of the modifications we      stop,” Shock said. “By 2050, the IMO is
this fall, she will have Caterpillar Mak       do to the engines to reduce emissions,       requiring a 50 percent reduction in green-
engines and related systems, as will a         make them less efficient.                    house emissions.”
sister ship slated for 2021 delivery, in          “We have been able to run our high-          As to whether a powerplant can become
addition to two LNG-fueled ships for           speed engines more efficiently at a higher   totally carbon neutral, he said: “As long
Costa Crociere.                                emission level because the SCRs are so       as we operate on carbon-based fuels, I do
                                               effective that we meet the IMO III re-       not see how we can become carbon neu-
Proven Engines                                 quirement at the stack. The engine is 2 to   tral. Today, LNG and methanol start out
   “The most proven powerplants re-            3 percent more efficient and by increasing   as natural gas, and if you are consuming
mains the diesel engine running on MGO         the efficiency we are offsetting the cost    energy to create fuels, even though the
or with catalysts (SCRs) with HFO,             of the urea (in the SCR system).”            emission properties may be substantially
Shock continued.                                  As for scrubbers, Shock described the     better, you cannot get to zero emissions.
   When Holland America Line’s Nieuw           technology as transitional. “Scrubbers are      “It may eventually take new alter-
Statendam enters service in November,          improving and maturing,” he said, “but       native fuels, energy storage or energy
she will feature a diesel electric Cater-      many operators I talk to are not yet sold    conversion systems and different tech-
pillar Mak powerplant.                         that they are reliable, cost effective and   nologies like fuel cells. To get to zero
   Shock said today’s generation of diesel     long-term viable. One issue is how to deal   emissions, we are going to have to go
engines are very efficient and that fur-       with the waste of closed-loop systems.       the way of renewables.” 

22       Cruise Industry News: 2019 Zero Emissions Report
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