Whether it’s food, technology or medicines, countries rely on shipping to sell or buy goods. Much of what we use everyday has been transported by sea. But this comes at a cost. Shipping contributes approximately 3% of global greenhouse gas emissions — and within the EU, that figure is doubled.
It’s a sector that’s renowned for being difficult to decarbonise. The industry is crying out for innovative tech and large amounts of capital to build and trial solutions which enable ship owners to meet strict regulations.
This is where collaboration between maritime startups and major energy companies can make a big difference.
Established in 1996 as one of the first corporate venture funds in the energy sector, Shell Ventures invests in maritime startups which focus on decarbonisation. With a dedicated team of business development experts, Shell works with portfolio companies to co-create their partnership strategy.
“Portfolio companies tell us that they find value in Shell as a customer. We provide marketing support and facilitate introductions to internal Shell leadership as well as industry networks,” says Karinya Turnbull, chief of staff at Shell Ventures. “In turn we have learnt that partnerships between corporates like ourselves and startups require clear and aligned goals, patience and commitment from both parties.”
Here’s the stories of Value Maritime and Corvus Energy, two startups in Shell’s portfolio, about how their technology is creating waves in the decarbonisation of the shipping industry.
Sharing expertise
Christiaan Nijst is founder and director at Netherlands-based Value Maritime, whose Filtree system clears air and water on small and medium-sized ships. The technology filters sulphur, ultra-fine particulates (fine dust) and CO₂ from the ship’s exhaust gases. It also removes oil residues and particulate matter from the washing water.
Value Maritime received funding from Shell Ventures in 2023 and Nijst says collaboration will be key for the shipping industry to progress.
“Startups, with their innovative solutions and agility, can bring breakthrough technologies while established energy companies offer the scale, resources and infrastructure needed to implement these solutions on a global level,” he says.
“Through partnerships with strategic players like Shell, we are actively developing the necessary infrastructure and creating access to buyers for the captured carbon,” he adds. “This holistic approach ensures that CO₂ is not only captured, but also effectively stored or reused in ways that contribute to a sustainable circular economy.”
Nijst adds that when startups and energy companies work together and in close cooperation with governmental and institutional bodies, they can significantly speed up the regulatory, technical and operational advancements needed to meet global sustainability goals.
“By pooling strengths, we create an ecosystem that supports faster innovation, smoother implementation and more impactful reductions in the maritime sector’s carbon footprint,” says Nijst.
Regulatory support
Norway-headquartered Corvus Energy is a supplier of energy storage solutions in the maritime industry. Electric or hybrid/electric vessels such as ferries, cruise ships, tug boats and fishing boats use these solutions for example, in the form of lithium-ion batteries.
Fully electric vehicles can save 100% in fuel costs, minimise emissions and, as batteries do not have moving parts, maintenance costs are reduced. For hybrid vessels, energy storage solutions improve energy consumption by running the engines at optimal load and storing excess energy for later use.
“Over half of all vessels in the world that have installed zero emission solutions are using our systems today,” says Fredrik Witte, CEO at Corvus Energy.
“Recently, our system became the second company in the world to receive type approval for our maritime fuel cells solution, [granted by DNV, a leading maritime classification society, for meeting regulatory, technical and safety requirements]. We have developed this solution in cooperation with Toyota using their fuel cell technology,” he adds. “We put that fuel cell into an inherently gas safe environment because safety is, of course, extremely critical in the maritime industry.”
Maritime safety is highly regulated and is an example where a major energy investor can provide essential support. Shell invests in multiple decarbonisation strategies including lower carbon fuels, hydrogen, Carbon Capture Storage (CCS) and new technologies. Corvus Energy received investment from Shell Ventures in 2019.
“Strict safety and performance standards must be met when new technologies like battery systems are introduced,” says Witte. “We leverage [Shell’s] network to better understand the approval process and steer through these complex regulations and environments.”
Turnbull adds this is a benefit of working with Shell Ventures: “Our Ventures team work together with our marine business experts to support portfolio companies with industry knowledge and expertise. This saves companies crucial time in gaining accreditation”.
Opening doors
Having the backing of major global energy companies also accelerates the growth and scale timeline for maritime startups. Shell’s portfolio companies use Shell’s stamp of approval to leverage the wider Shell business and make connections with the industry.
“With the support of Shell Ventures, we’ve been able to accelerate our strategy across the maritime value chain,” says Nijst. “Shell’s involvement provides both financial backing and access to expertise, industry networks and global markets, which enhances our ability to expand into key maritime hubs.”
Witte notes an increase in the rate of growth Corvus has witnessed since 2019 and says as both a board member and strategic investor, having the energy firm on their side has been critical for gaining support for projects.
“Shell has expertise, experience and relationships with regulatory bodies and other industry stakeholders. We are able to promote our solutions to a wider audience — both across Shell’s businesses and by leveraging external connections,” says Witte.
In turn Shell has learned to be open to new ways of working and to be clear on the common goal. Turnbull recognises that “a company of Shell’s size has well-established processes which we take for granted but can be daunting for new startups. Our specialised team provides support.”
Speaking to both companies it’s clear the combination of a world-leading energy company with over one hundred years’ experience, together with relatively new organisations focused on disrupting the industry with rapid growth, can make great progress on their common goal of decarbonisation.
Shell Ventures continues to support marine decarbonisation and further information can be seen on their website here or via the Low Carbon Solutions (LCS) LinkedIn page here.
Read the orginal article: https://sifted.eu/articles/decarbonise-shipping-brnd/
