Shipyards ready for retrofit boom, says Tallinn Chairman

Shipyards are ready for an expected burst in retrofits, whether in terms of fuel efficiency, or alternative fuels, said Sergei Kravchenko, chairman of Tallinn Shipyard, last week. Yards are poised to convert existing vessels to methanol, LNG or ammonia, should their customers be eager to do so. Audiences at the SMM panel Retrofitting the fleet: the case for marine engine upgrades heard that momentum from charterers to reduce their own Scope 3 emissions would likely drive new activity in the coming years. Questions were asked over whether shipyards could handle the rush.

But Kravchenko was unequivocal: “European shipyards are ready to retrofit – the market is not,” he said. On alternative-fuel retrofits, he added: “The economics break first. You need more space, bigger tanks, for the same power. Hydrogen is two times more expensive, with ammonia, the factor is 2.5. My suggestion is hybridisation and [efficiency] retrofits.”

Fellow panellist Thomas Leander, Everllence vice president, Head of Solutions, suggested that capacity would normalise in the coming years, leaving under-invested shipowners exposed. “Right now, everybody is screaming for capacity,” he said. “But in a few years we will reach a point of overcapacity.”

Echoing sentiments heard from others this week, Leander suggested that charterers would soon be free, and willing, to pick winners based on green performance and optimisations. And, he added, “We will also make our own decisions as consumers through ZEMBA (Zero Emission Maritime Buyers’ Alliance). You will prefer goods to be transported with companies that want to do it in a green way.”