LR’s new Engine Retrofit Report says a shortage of repair yards with experience in
conversions may hinder the take up of alternative fuel technology by the existing fleet.
A Lloyd’s Register (LR) report on the state of technology, integration and compliance, alongside
the business case for retrofitting vessels, has found that repair yard capability and capacity
concerns could thwart the uptake of alternative fuel technology onboard existing ships.
The Engine Retrofit Report [Link], has identified that retrofitting a significant number of the 9,000
and 12,900 large merchant vessels estimated to be part of the global fleet in 2030, could rapidly
accelerate the maritime energy transition. However, it warns that these ambitions could be
jeopardised by the limited number of repair yards currently capable of performing such
conversions.
Key factors influencing the size of the market and the timing of retrofits, include the date by which
shipping begins building only zero-emission vessels, as well as the age at which owners or
operators decide to retrofit their vessels and the suitable engine types and bore sizes.
The study, which analyses the state of engine retrofit demand, capacity, and uptake, also points to
the new skills in naval architecture, electrical engineering, and fuel handling which will be
required if the industry is to use retrofitting as an effective tool to accelerate decarbonisation.
One of the key challenges with retrofits identified in the report is system integration, with
significant issues such as accommodation for larger fuel tanks, space for fuel preparation
equipment and ensuring safety measures are in place, all providing obstacles to rapidly
retrofitting the existing fossil fuel fleet.
Techno-economic modelling data revealed in the study shows that the use of renewable methanol
or ammonia would significantly increase fuel costs, in some cases more than doubling for vessels
in all segments, however, a low-cost scenario, where alternative fuels decrease in price and carbon
pricing rises, could tip the balance in favour of alternative fuels.
The study also highlights the importance of human factor considerations, underlining how the
critical aspect of impact on crew members can often be overlooked during retrofitting. Assessing
ergonomics, roles and responsibilities, competency and training, procedures processes, and
occupational health will play a crucial role in ensuring retrofitting is safe and effective for ship
operators.
The report also includes updates on the latest technology from Original Equipment Manufacturers
(OEMs) including Wärtsilä, MAN Energy Solutions and WinGD.
Claudene Sharpe-Patel, Lloyd’s Register Technology Director, said: “Decarbonising the
existing fleet is crucial for reducing the maritime industry’s greenhouse gas emissions. Without
significant progress in this area, there could be as many as 20,000 commercial vessels relying on
fossil fuels by 2050. We must, therefore, focus industry efforts on addressing the issues that LR’s
Engine Retrofit Report raises such as yard capacity, conversion capability and system integration,
helping stakeholders from the maritime value chain navigate the obstacles to installing future
fuels technology on the existing global fleet.”
