Denmark-headed Svitzer, a leading global towage provider and a wholly owned subsidiary of global shipping major AP Moller-Maersk, and Caterpillar Marine, part of US-headed global heavy-machinery and engine major Caterpillar Inc., have signed a Memorandum of Understanding (MoU) to adopt solutions that enable Svitzer to utilize methanol in its fleet of tugs.
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The implementation of dual-fuel methanol engines focuses on new tugs as well as conversions of existing Cat-powered tugs, which comprise the majority of Svitzer’s fleet.
With a relationship spanning numerous decades, this agreement marks the next evolution of their journey to, amongst other initiatives such as the adoption of biofuels in EcoTow, enable the fulfillment of Svitzer’s decarbonization strategy.
Svitzer has a significant fleet of vessels powered by Cat systems, as well as ambitious decarbonization targets for our future fleet. It is therefore of utmost importance that we join forces with strategic collaborators, such as Caterpillar Marine, to find solutions for both existing and future vessels, said Kasper Karlsen, Global CEO of Svitzer.
Following the recent Cat 3500-E series methanol-readiness announcement in September 2022, this MoU formalizes the collaboration to deploy engine technologies that enable Svitzer to utilize methanol, which can be produced from renewable energy sources to reduce lifecycle greenhouse gas (GHG) emissions.
Many companies within the industry are exploring methods and solutions that can be incorporated today while also determining viable options for the future. The collaboration between Caterpillar and Svitzer is an important step towards implementing the solutions that support their decarbonization strategy, said Brad Johnson, VP and General Manager of Caterpillar Marine.
Carbon neutral across all scopes by 2040
With a focused strategy on sustainability, Svitzer is making pragmatic decisions to support reductions in carbon intensity in the maritime industry, aiming to achieve a 50 percent reduction in the carbon dioxide (CO2) intensity of its entire fleet by 2030 and become CO2 neutral across all scopes by 2040.
Given the size and complexity of our fleet and the ambitious target we have set of becoming carbon neutral in 2040, it is critical to take a holistic approach to reduce our CO2 emissions. While we seek to mature and utilize new technologies, fuel types, and operational approaches for new vessels, we also have to find solutions that help reduce the emissions from our existing fleet. The support Caterpillar provides in finding ways of converting our equipment to methanol usage plays a key role in this, said Gareth Prowse, Head of Decarbonization for Svitzer.
The focus of our collaboration is two-fold. We are supporting Svitzer to enable tugs to operate on methanol with diesel-like performance while providing fuel flexibility which is key to enabling operators to lower their carbon intensity via green methanol as availability increases. Additionally, we’re taking full advantage of the learnings to provide conversion solutions for the existing fleet. This is a critical aspect to reach the level of methanol adoption that Svitzer seeks to fulfill its goals, said Andres Perez, Global Tug Segment Manager at Caterpillar Marine.
