Wind-Powered Shipping is Back
A refreshingly "simple" and available decarbonization solution hits the seas.
Source: Cargill
One of the world’s reactions to Russia’s invasion of Ukraine has been to put a financial clampdown on the funds and assets of oligarchs. Sanctions have often included targeting the fleet of mega-yachts docked in marinas around the world.
Articles about these yachts provide a glimpse into the shocking consumption levels among the super-rich, like when you read in a divorce that someone “just can’t live” without that upper-six-figure monthly stipend.
A recent WSJ article highlighted how just one oligarch’s impounded boat was draining the coffers of a small nation. The economics are astounding.
As the article points out:
“Taxpayers of this cash-strapped nation are currently paying $28,000 a week to maintain the stationary boat, including the salary of an Italian captain and $2,000 a day in diesel to keep its air conditioning running. If it turns off, mold will spread through the vessel within 48 hours, potentially damaging its hardwood interior and the Miro painting on board.”
“You take thousand dollar bills, tear them up, and just keep going,” said Tom Paterson, the dock master of the marina, making a ripping up motion with his hands in the marina offices.
+Taxpayers Stuck Paying the Bills for Oligarchs’ Seized Yachts and Mansions - WSJ
$2,000 a day in diesel fuel to keep the air conditioners running. What does it burn to move?
I cringe whenever I have to fill up my car’s 20-gallon tank every few weeks. This article feeds into that feeling that what I do matters so little. But worrying about the massive over-consumption of billionaires is a fool’s errand.
Consumers gotta consume, and they just do it way better than the rest of us.
Thankfully, there are people out there tackling big problems that have a massive impact on our collective consumption and resource use. And once in a while, these solutions are actually ready to go.
Speaking of Really Big Boats
I first wrote about companies in the shipping industry that are looking to harness the wind for fuel efficiency in April 2022. At that time, the companies in this space were generally in the design phase. They fell into two technological camps - kites and sails.
Since then, there have been far more headlines around sails. Investment is coalescing around this technology as a potential standard. I’m not saying it’s over for kites, but a certain momentum is gaining steam.
As with most decarbonization efforts, there is room for more than one solution. Various technologies fit different niches.
AYRO Raises 19 Million Euro
The latest headline has come from Paris-based AYRO behind its Oceanwings concept. The company has just raised a 19 million euro Series B round that Swen Capital Partners Blue Ocean Fund led.
According to the press release:
“Every year, some 90,000 ships transport nine billion tons of goods globally, accounting for almost 90% of all logistics flows. Reducing the emissions of these ships is an urgent priority,” said Emmanuel Schalit, AYRO’s new CEO. “The good news is that wind is free, available on every ocean, and the technology to harness it is now mature and available.”
+AYRO Secures 19 Million € Series B Financing Round Led by SWEN Capital Partners’ Blue Ocean Fund - BusinessWire
The AYRO sail solution has been outfitted on the Canopee, a ship custom-built for carrying space rocket components from Europe to French Guiana (pretty specific purpose).
The vessel was launched for trials in July, representing another technology that has advanced from design to testing.
WindWings (and the sail naming convention)
I’ve seen more headlines recently from Cargill’s sail project.
Cargill is the world’s largest agricultural trader. It moves 225 million tons of cargo each year on hundreds of vessels.
Traders lease ships more often than they own them. A project like this required collaboration with engineering and design firms (BAR Technologies and Yara Marine Technologies) as well as shipbuilder and owner Mitsubishi Corp.
It’s also an example of a large customer perhaps pushing its decarbonization agenda up the supply chain.
This project has been in the news since its prototype set sail on its maiden voyage in August. Moving from design to prototype is always a big step. And this collaboration has successfully gotten the technology out to sea.
Similar to the estimates provided by others in the space, they expect to see about a 30% reduction in fuel consumption due to the sails.
“The WindWings project, which is co-funded by the European Union as part of the CHEK Horizon 2020 initiative, can help the industry meet those targets by offering a retrofit solution that is capable of decarbonizing existing vessels, which is particularly relevant given that 55 percent of the world’s bulker fleets are up to nine years in age.”
“On an average global route, WindWings can save 1.5 tonnes of fuel per WindWing per day - with the possibility of saving more on trans ocean routes. This can translate into vessel owners saving heavy fuel oil (HFO) at c$800 per tonne, which will become even more important when saving against future fuels, which will undoubtedly cost a lot more.”
+Cargill and BAR Technologies ground-breaking wind technology sets sail - Cargill
This video sums up the technology behind the project and the players involved, and is pretty cool to watch!
Retrofit vs. Purpose Built
While both AYRO and Cargill claim that their sail solutions can save about 30% of fuel use, Oceanbird is making the case that a purpose-built sail-powered vessel could achieve a 90% emissions reduction.
“The target working with Wallenius Wilhelmsen is to have a vessel that is specially built for sailing with a full set of six Oceanbird Wing 560 sailing in 2027. The concept is for a car carrier using wind propulsion, but Oceanbird is also working on designs so that its wing sail could be deployed to a broad base of ships ranging from car carriers to tankers and bulkers as well as cruise ships.”
“Their ultimate goal, unlike other wind technologies, is to move to full wind propulsion where a ship might get 90 percent of its power from the sails.”
+Oceanbird Wing Receives AiP as it Approaches First Full-Size Prototype - Maritime Executive/
This solution takes longer to build out. However, it is vital to have this portfolio of short-term wins and longer-term solutions.
Efficiency for the Win
One commonly cited issue with renewable energy is its intermittency - the sun doesn’t shine at night, and the wind doesn’t always blow. However, in the case of these global shipping routes, the wind is actually very consistent. After all, mariners have been taking advantage of dominant currents and wind patterns to make the routes faster and more efficient for centuries.
Additionally, decarbonization and fuel-switching solutions in the energy world often require massive infrastructure investments or rely on tech that isn’t available yet. The build-out of these entirely new systems requires billions and takes years.
When it comes to replacing shipping fuels, there is a chicken-and-egg issue of either commissioning ships that use these new fuels before they are available versus providing an alternative fuel that has no demand (yet).
A technology with such simple economics and broad reach is refreshing. I don’t want to undermine the amazing engineering involved in these new “wings”, but even I can understand how sails move a ship and save fuel.
I can wrap my head around how a 30% solution, while not perfect, will immediately impact this massive global and dirty industry.
As for the math behind the investment, it’s pretty simple. Does the savings in fuel cost over the life of a 30-year asset justify the cost of the sail? Solutions that save money and don’t impose another additional cost on business can roll out quickly.
From our homes to our cars, efficiency doesn’t get the attention it deserves. It’s far sexier to dream up versions of the future where everything we need is somehow provided without impacting the environment. But a 30% haircut on the footprint of an entire industry goes a long way.
Using less fuel also makes the economics of switching to cleaner (but more expensive) ones easier, which is crucial to rolling out potential substitutes to that dirty bunker fuel.
Solutions like these are essential because they are real, impactful, and ready to go.
My family did an overseas stint living in Sydney when I was a kid. I remember it being a big deal to go down and see the Queen Mary coming into port. The ship was just so unfathomably large.
I feel the same way about a massive cargo ship powered by sails. I can’t wait to see one in action.