Wed 18 Jan 2017 15:27

Ships earning green discount up 83% in Gothenburg


Two LNG-fuelled vessels receive the biggest discount on port fees of 30 percent.



The Port of Gothenburg reports that an increasing number of ships are receiving an environmental discount on port charges, including LNG-powered ships that receive the biggest discount of almost a third.

Heading the Swedish port's discount list are Donso-based shipping companies Tarntank Ship Management AB and Furetank AB, whose vessels - the Ternsund and the Fure West - are powered by liquefied natural gas (LNG).

In 2016, the Ternsund (built in 2016) and Fure West (constructed in 2006) received the maximum discount of 30 percent each time they called at Gothenburg. By using LNG as a marine fuel, emissions of sulphur and particles are reduced to almost zero and nitrogen oxide emissions by 85 to 90 percent. There is also a reduction in carbon dioxide emissions.

"Swedish shipping companies are very much at the forefront when it comes to LNG, methanol, hybrid electric ships and other eco-smart solutions," said Edvard Molitor [pictured], Environmental Manager at Gothenburg Port Authority.

The Port of Gothenburg rewards vessels that are considered to be environmental high performers. One in three vessels that called at the largest port in Scandinavia last year were classified as green (according to industry environmental indices) and were therefore granted an environmental discount on port fees; this represents an increase of 83 percent on the previous year.

In total, 75 vessels received a discount of 10 percent on port charges compared to 41 in 2015.

Molitor remarked: "The growing number of vessels classified as green is highly encouraging. They are also vessels that call at the port on a regular basis."

The discount is based on two separate environmental indices: the Environmental Ship Index (ESI) and the Clean Shipping Index (CSI). Vessels that have a score of at least 30 according to ESI, or that are classified as green according to CSI, receive a 10 percent discount on port charges.

The current environmental discount was first introduced on 1st January 2015. Another similar environmental reward system was in place prior to that. The aim is for shipping companies to be encouraged to mitigate their environmental impact in a way that goes beyond laws and regulations.

"We want to reward the shipping companies for their green initiatives. For the average freight vessel, the environmental discount could result in savings of tens of thousands of kronor," explained Molitor.

Gothenburg Port Authority stresses that now it is even simpler for shipping companies to secure a discount. Previously, companies were required to register their vessels with Port Control at the Port of Gothenburg, but effective from 1st January 2017, registration takes place automatically when vessels call at the port. Vessels running on LNG will still need to report to the port authority to secure the discount.