Hapag-Lloyd and its view on future propulsion technologies

In 2020 Hapag-Lloyd achieved fuel savings of roughly 15 percent with 39 vessels by removing the fouling on their outer hulls. Additionally since beginning of 2020, the company has been operating its vessels using IMO 2020-compliant low-sulphur fuel oil, thereby reducing sulphur-oxide emissions by roughly 70 percent compared to 2019. Also Hapag-Lloyd is focusing on new propulsion technologies, and is the first shipping company in the world that has converted a large container ship to dual-fuel propulsion, which can also operate using liquefied natural gas (LNG). Furthermore, an initial test phase has started to employ bio-fuels based on used cooking oil. And last but not least Hapag-Lloyd ordered six state-of-the-art container ships, each with a capacity of more than 23,500 TEU. Since they will have highly efficient dual-fuel engines, the shipping line can use either low Sulphur fuel or LNG with these vessels. The new ships will be delivered in 2023, and by using LNG they will be able to reduce carbon emissions by between roughly 15 and 25 percent. In addition to advancing the modernization of the fleet, this will lower the carbon footprint.

Although LNG might only be an interim solution, it is the best and cleanest option currently available, helping lower emissions today. There are no other alternatives available in large quantities, and all alternatives for the use in Ultra Large Container Vessels still need 10 to 15 years of development. In general there are a few issues that will be crucial for further progress of decarbonisation: the infrastructure for the availability of fuel, the cost-to-market, various safety issues but also the willingness to pay higher prices. In the medium term, fossil LNG must be replaced either by hydrogen-based synthetically manufactured methane gas SNG or by Bio LNG.

Great hopes are placed for example in hydrogen as alternative fuel. But important changes are required for green hydrogen to break through: First and foremost, supply of green hydrogen needs to be expanded considerably. In 2020, green hydrogen only made up ~0.1% of global hydrogen production. Although the capacity for the production of green hydrogen is expanding rapidly, it is starting from a very low baseline. Second, and linked, prices will have to come down to make green hydrogen economically viable. One is for sure: the expansion of renewable energy sources will make production cheaper. Taking all these developments into account, we are probably going to see green hydrogen used as SNG drop-in on container vessels in the next 10 years.

Until then Hapag-Lloyd will continue to invest in LNG as an intermediate measure to bring down CO2 emissions significantly. Investing in LNG makes sense because it keeps various future options open. By advancing decarbonisation today, it will lay the groundwork for the technologies of tomorrow. With the six orders of brand new 23,500+ dual fuel vessels into the Hapag-Lloyd fleet as of 2023 – plus the conversion of the 15,000 TEU vessel “Brussels Express” from conventional fuel to LNG, Hapag-Lloyd will invest more than one billion USD into a cleaner environment and less CO2. Hapag-Lloyd strongly believes that the shipping industry could become a zero-emission industry as of 2050. But this requires quick technological progress as the feasibility will strongly depend on the available fuel options.