Net-Zero Industry Act: Council and Parliament strike a deal to boost EU’s green industry

08.02.2024

wind-turbine-vetro-vetropark — Foto-ilustracija: Pixabay

Photo-illustration: Freepik (@
Oleksandr Ryzhkov)

The Council and the European Parliament reached a provisional deal on the regulation establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem, better known as the ‘net-zero industry act’ (NZIA). The regulation aims at boosting the industrial deployment of net-zero technologies needed to achieve EU’s climate goals, using the strength of the single market to reinforce Europe’s leadership in industrial green technologies.

Under agreement, there will be a single list of net-zero technologies, with criteria for selecting strategic projects in those technologies that will contribute better to decarbonisation.

The industrial contribution towards climate neutrality

The net-zero industry act aims to ease conditions for investing in green technologies, by simplifying permit-granting procedures and supporting strategic projects. It also proposes to ease market access for strategic technology products, enhance the skills of the European workforce in these sectors (notably through the launching of net-zero industry academies) and create a platform to coordinate EU action in this area.

To foster innovation, the net-zero industry act proposes favourable regulatory frameworks to be created for developing, testing and validating innovative technologies (known as regulatory sandboxes).

Progress towards the objectives of the net-zero industry act will be measured by two indicative benchmarks: reaching 40 per cent of the production required to cover EU’s needs in strategic technology products, and their evolution in comparison to world production for products such as solar photovoltaic panels, wind turbines, batteries and heat pumps. The proposal also sets a specific target for CO2 carbon capture and storage, with an annual injection capacity of at least 50 million tonnes to be achieved by 2030.

Main elements of the agreement

The provisional agreement supports the main objectives of the net-zero industry act that were proposed by the Commission less than a year ago, while introducing several improvements, such as streamlined rules on construction permit procedures, creation of net-zero industrial valleys, and more clarity on criteria for public procurement and auctioning.

Scope and list of technologies

The new regulation is intended to provide easier conditions and certainty to investors and promoters of net-zero technology manufacturing projects. The projects identified as having a greater potential for decarbonisation will benefit from fast-track permit procedures for construction or expansion and guidance in accessing finance.

Given that member states have the right to choose between different energy sources, they will not be obliged to recognise as strategic projects those related to a technology that is not accepted as part of their energy mix.

Photo-illustration: Unsplash (arteum-ro)

Fast permit-granting processes

The time limit for delivering a permit for constructing or expanding large net-zero technology manufacturing projects (more than 1 gigawatt), as well as those not measured in gigawatts, will be a maximum of 18 months. For smaller projects (less than 1 gigawatt), the time limit for delivering the permit will be 12 months. Shorter deadlines will be set for strategic projects. In addition, and independently of the time limits, the procedure will ensure that such projects are safe, secure and environmentally sustainable and that they comply with environmental, social and safety requirements.

Industrial valleys

The future regulation will promote the development of net-zero acceleration ‘valleys’ (territories that concentrate several companies involved with a certain technology). The objectives of those valleys are to create clusters of net-zero industrial activity so as to increase the attractiveness of the EU as a location for manufacturing activities and to further streamline the administrative procedures for setting up net-zero manufacturing capacity. They will contribute to the reindustrialisation of regions.

Public procurement

The rules governing the way public authorities will purchase goods, works and services related to strategic net-zero technologies are designed to better ensure that requirements are transparent, implementable, and harmonised and that the supply of those technologies to the EU is diversified, while safeguarding sufficient flexibility for contracting authorities.

Photo-illustration: Unsplash (
Mariana Proença)

The act agreed on today regulates the use of schemes incentivising the purchase of net-zero technology products and defines sustainability and resilience contributions in public procurement procedures. The environmental sustainability contribution will be a mandatory minimum requirement, while the resilience contribution will be applied if there is a third-country dependence of more than 50 per cent for a specific strategic net-zero technology (or for its components). This criterion will only be considered if the Commission has first assessed the level of dependence of each technology from a particular third country.

If the application of the resilience and sustainability contribution results in a disproportionate cost difference or if no suitable tenders or requests have been submitted, contracting authorities may decide to not apply these criteria.

Auctions to deploy renewable energy sources

The provisional agreement establishes that when a member state designs an auction for the deployment of renewable energy technologies, they will be able to apply both pre-qualification and award criteria which are not price-related, such as environmental sustainability, contribution to innovation or integration of energy systems. These criteria will have to apply to at least 30 per cent of the volume auctioned every year per member state.

The Commission will define the criteria for procurement and auctioning and will revise the volume auctioned in the light of an assessment of the functioning of the system.

Next steps

The provisional agreement reached with the European Parliament now needs to be endorsed and formally adopted by both institutions.

Source: European Council

HOW DID PAKISTAN’S LIBRARY BECOME MORE ENERGY EFFICIENT?

06.02.2024

knjige_biblioteka — Photo-illustration: Pixabay

Photo-illustration: Freepik (rawpixel.com)

A project was recently implemented in Pakistan that resulted in a significant improvement in the energy efficiency of a public facility. The Raziuddin Siddiqui Memorial Library in Islamabad, known for its collection of over two million books, CDs and DVDs, is now also noted for its commitment to energy efficiency.

The library replaced all the pipes on the ground floor with energy-saving LEDs. This move has led to a reduction in energy consumption for lighting by approximately 75 percent, while simultaneously improving lighting quality and reducing costs.

LEDs consume only a quarter of the energy compared to the previous system. This initiative is part of a wider effort by governmental and non-governmental organizations to encourage the use of more energy-efficient and high-quality lighting solutions, according to the UNEP website.

This project is of particular importance in the context of the energy situation in Pakistan, which relies on diverse energy sources and faces energy deficits, especially during the summer months, considering that the country has a population of over 231 million.

Besides this project, Pakistan implemented another large-scale initiative called “Billion Tree Tsunami”, a project launched ten years ago whose goal is to plant a billion trees. This project exceeded its goals, with the project resulting in planting of over one billion trees thanks to which 350,000 hectares of forest land were restored. This initiative has gained global recognition as a successful example of combating climate change through forest restoration.

Energy portal

EU DIRECTIVE WILL ESTABLISH THE POLLUTER PAYS PRINCIPLE FOR WATER TREATMENT

05.02.2024

mulj_prerada — Foto-ilustracija: Unsplash (Ivan Bandura)

Photo-illustration: Unsplash (Naja Bertolt)

The European Commission reacted positively to the temporary political agreement concerning the Urban Waste Water Treatment Directive, which is a significant step in the protection of human health and the environment from the consequences of urban pollution.

The revised directive aims to clean up rivers, lakes, groundwater and seas across Europe, reducing the harmful effects of urban wastewater.

The new directive standards introduce a number of key changes. The first is the removal of usable nutrients from urban wastewater and the implementation of stricter standards for micropollutants. It is important to note that the directive will now apply to a larger number of areas, including smaller agglomerations with more than 1,000 inhabitants.

In accordance with the polluter pays principle, which now takes centre stage with the revised directive, the new legislative framework should ensure that certain industries bear part of the costs of environmental protection, thus reducing the burden that falls on consumers through various tariffs.

This important novelty, i.e. the polluter pays principle, will be specifically applied in the water sector, while the pharmaceutical and cosmetics industry will have to cover at least 80 percent of the costs of removing microplastics.

Another novelty is the improvement of rainwater management, which has become increasingly important in the context of climate change. The directive foresees measures to better manage these challenges.

We recently reported about how the city of Zagreb is investing money in this very issue, given that the Balkan region in 2023 faced large amounts of precipitation during supercell storms. The Mayor of Zagreb pointed out that the main goal of those investments is to prevent urban flooding, which is becoming more frequent due to intense rains that exceed the capacity of the existing drainage system. Currently, Zagreb uses a mixed drainage system, where both rainwater and sewage liquid are drained through the same channels. This system can lead to flooding of polluted waters when heavy rains exceed the system’s capacity, the Zagreb authorities say.

Energy portal

AUSTRALIA’S SOLAR REVOLUTION STARTS ON ROOFTOPS

05.02.2024

Photo-illustration: Unsplash (giorgio-trovato)

It is a well-known fact that Australia is one of the largest countries in the world with an area of 7.6 million square metres, which is why it does not have a uniform climate. However, certain northern parts of the country can have over 300 sunny days a year. Even the southern parts, such as the state of Victoria or South Australia, which have a different climate, have enough sun for this country to embark on the development of solar energy.

Of the total electricity production in 2022, 32 percent came from renewable sources, but this figure is growing year-on-year, the Government’s website says. This growth was also driven by the increased use of rooftop solar panels, which had a decent share in electricity production. Therein lies idiosyncracy when it comes to solar energy in this country – individuals and their homes lag behind this solar panel growth. For instance, on the last day of the year 2023, generated rooftop solar power alone covered the electricity needs of one Australian state.

A report by the Australian Energy Market Operator (AEMO) mentions this increase, specifically pointing to the significant contribution of rooftop solar plants. The same report also reveals that in the fourth quarter of 2023, average generation from distributed photovoltaic (PV) systems reached an all-time high of 3,433MW, up 17 percent from the same period in 2022, also setting a record for any quarter so far.

Photo-illustration: Unsplash (Bill Mead)

This means that the contribution of small technologies of a group of individuals is not insignificant or irrelevant, but influences the country’s energy transition. Considering the research that shows that almost a third of the houses in the country have rooftop solar panels, we can say that Australia is one of the leading countries when it comes to rooftop solar plants per capita. At the state level, this number stands at 10 percent, as reported by local research and the media.

In order to meet the ambitious targets Australia has set when it comes to renewable sources, more massive technology is needed, whether it is solar, wind, water or some other form of energy. There are infrastructural obstacles to this in the country, given its size. Still, Australia has a relatively small population, which means that large state-owned solar power projects can often be far from the main consumer groups, which further complicates the infrastructure and the transmission challenge while increasing infrastructure-related costs.

Energy portal

EMPOWERING LOCAL COMMUNITIES – PANEL BY PANEL TO POWER PLANT

04.02.2024

IMG_20230408_224422 — Photo: Elektropionir

In light of the development of the modern energy sector, Elektropionir – an energy cooperative formed around 2019 – has become a beacon for people who are actively looking for a better position in this sector. The cooperative’s team raises awareness of the challenges that individuals, as natural persons, face when trying to produce their own electricity. Through its members’ personal insights and experiences, Elektropionir identified disharmony in the legal framework, which did not recognize individual electricity producers as an integral part of the extensive power grid. Then, a slight change happened, illuminating the path towards creating a mechanism to introduce the community into a collective energy enterprise. Jelena Nikolić, a doctoral candidate in energy management and a member of the Elektropionir Energy Cooperative, elaborates on the cooperative’s work and its most renowned project.

Following the cooperative principles, this cooperative is a legal entity that strategically organizes its members while promoting voluntary and open membership, democratic organization (one member/one vote), economic participation of all cooperative members, inter-cooperative cooperation through participation in the European umbrella organization of energy cooperatives – REScoop – as well as autonomy in business. Education has always been the central pillar EMPOWERING LOCAL COMMUNITIES – PANEL BY PANEL TO POWER PLANT

IN FOCUS:

“During our Solartehnika course, we try to pass on everything we know to the nation and share the experience we have gained. So far, we have held six courses, each different from the previous one. The period between the two courses brings new knowledge and a different approach, so each Solartehnika course is better than the previous one. So far, more than 250 participants have attended them,” Jelena Nikolić points out.

Elektropionir has opened a new chapter in sustainable energy in Serbia with their immersion in the Solarna Stara project, initiating the idea that ordinary people, united and determined, are powerful drivers of change in the energy transition. The project demonstrates that the responsibility for setting up a power plant does not have to be concentrated exclusively in the hands of large investors. Namely, when local communities unite, they can produce their own electricity and advocate for a just energy transition through action and common ownership of clean energies. The project was launched in the spring of 2022 in cooperation with the people from the old mountain villages of Dojkinci and Temska and the city of Pirot. Still, it was designed and implemented under the auspices of the Elektropionir Energy Cooperative. It laid the groundwork for the country’s first cooperative solar power plants, setting the standard for future initiatives.

Prepared by: Milica Vučković

Read the story in the new issue of the Energy portal Magazine CIRCULAR ECONOMY

THE PIONEER PROJECT OF THE MT-KOMEX COMPANY IN BIH – REŠETNICA

03.02.2024

Competence and expertise in constructing solar power plants have brought MT-KOMEX to the position of a reliable and valuable partner in the energy sector. As such, it is recognized throughout Serbia, considering it has successfully developed and equipped many solar plants on the ground and roofs. However, now is an excellent opportunity to prove itself as a serious partner outside our borders.

Embarking on building a sustainable future, the company MT-KOMEX has recently expanded its operations to Bosnia and Herzegovina, where it will soon, together with MT-KOMEX BH d.o.o. start its debut project in this country – Photovoltaic (PV) Power Plant Rešetnica. This solar power plant will be built in the place of the same name in the city of Goražde. It will represent a combination of technological skill and environmental awareness, administratively belonging to the Bosnian-Podrinje Canton.

The construction of the solar power plant in Bosnia and Herzegovina will be carried out on a turnkey basis, which means that the contractor is responsible for all phases of the project, including – the design, delivery, assembly, and testing of the photovoltaic power plant. Therefore, the planning and creation of the model of the power plant, the delivery of the necessary materials, technology, and labor to the site, then the installation of panels, the installation of inverters and other necessary infrastructure, and finally, ensuring that the entire system works – is entrusted to the company’s expert team. The application of this method implies that the investor, Public Enterprise Elektroprivreda Bosne i Herzegovine d.d. – Sarajevo, will be presented with the final product, i.e. a fully functional plant ready for work, which relieves them of the hassle of managing numerous tasks and complex phases of work.

IN FOCUS:

The solar power plant will be positioned at about 900 meters above sea level, while the plateau planned for the PV power plant Rešetnica installation will cover about 8,200 m2 (or 0.82 hectares) of the 10,015 m2 total plot size. The chosen site should provide not only a solid platform for construction but also a great potential for efficient use of sunlight for high-yield energy production.

Luxor Solar’s solar panels will be used to construct this facility. The choice of panels is based on their efficiency in converting sunlight into electricity – an essential attribute, then longevity and reliability in different weather conditions, given that recent storms in these areas have made it clear that this is an important criterion when panel selection.

Photo-illustration: Unsplash (Asia Chang Yr)

On the other hand, Fronius inverters should enable efficient and reliable power conversion and thereby also contribute to the optimal functioning of the entire system.

– Of course, the key issue is the total capacity that the power plant will have. Therefore, it is planned that the PV power plant Rešetnica, with an installed power of 1,050 kWp, and a total output/active power of 800 kW AC, will produce an estimated annual energy of 1411 MWh – said Radoslav Marić, director of MT-KOMEX BH d.o.o.

The company MT-KOMEX realized that with its many years of experience and knowledge, it could help develop projects in the field of renewable energy sources in Bosnia and Herzegovina by establishing MT-KOMEX BH d.o.o. In addition to the contract for the construction of the PV power plant Rešetnica, negotiations are ongoing for the construction of four more solar power plants in BiH, three on the roof and one on the ground. The company’s engineers and installers are ready for all the challenges that business brings them in this area, and they are here to help every client construct a solar power plant.

Prepared by: Milica Vučković

Read the story in the new issue of the Energy portal Magazine CIRCULAR ECONOMY

Net Zero Industry Act threatens to be a backward step for Europe’s wind industry

02.02.2024

cape-ortegal-vetar-vetroelektrana — Photo-illustration: Pixabay (makunin)

Wind is 19 per cent of the electricity consumed in Europe. Nearly all of Europe’s wind turbines are made in Europe. Europe’s wind energy supply chain is big – over 250 factories spread across nearly every EU Member State. 300,000 people work in wind in Europe today.

Europe’s wind supply chain has been struggling. Costs went up in the last two years, but revenues didn’t rise as much. And there’s intense competition now from Chinese turbine manufacturers. The EU responded extremely well last year with the Wind Power Package of 15 immediate measures to strengthen Europe’s wind industry. 26 Member States then endorsed these actions by signing a European Wind Charter.

These actions include the tightening of pre-qualification criteria to raise the bar on what sort of wind turbines can be built in Europe – commitments on cybersecurity and data residency and responsible business conduct.

The EU is now about to agree a Net Zero Industry Act (NZIA). This aims to strengthen all of Europe’s clean energy supply chains. It’s a good thing. But some of the detail is going in the wrong direction. Specifically, there is a suggestion that the new pre-qualification criteria should only apply to 20 per cent of projects to begin with. This goes against the Wind Power Package which says they should apply to all projects. For wind, it sends it a signal that we only want high European standards for 20 per cent of projects – the other 80 per cent can go to non-European manufacturers.

Sure, other clean energy industries are in a different position. Some of them rely on non-European imports for the time being. Higher standards now for all projects might hurt them. But for wind they’re essential if Europe wants to preserve and strengthen its existing supply chain. The solution is simple – NZIA must take a technology-specific approach to the pre-qualification criteria. Otherwise we simply lose the prized assets we have today, our wind supply chain, and we fail to nurture the growth of the other new clean tech industries Europe wants.

To sum up, the European Parliament and EU Member States need to ensure, as they finalise NZIA, that:

pre-qualification criteria can apply immediately;
and that Governments take a technology-specific approach to pre-qualification criteria.

Otherwise the EU goes backwards on the support it committed to last year in the Wind Power Package and Wind Charter – and risks losing its largest existing clean energy industry.

Source: WindEurope

COMPANIES FROM CHINA, EGYPT, TURKEY, THE CZECH REPUBLIC AND SPAIN CONFIRM THEIR PARTICIPATION IN THE SUMMIT

02.02.2024

vetroelektrane-vetar — Foto-ilustracija: Unsplash (Appolinary Kalashnikova)

The largest regional event dedicated to renewable energy sources – the Balkan Solar Summit – will take place on February 8th and 9th. More than 50 speakers, 500 participants and topics that change the renewable energy market await us in two days in Banja Luka, in Banski Dvor.

The Summit will bring together the most eminent experts and business leaders from the region and Europe, who have successfully implemented various and live and work in the real sector. This time, they will be joined by executives from leading banks, as well as directors and Managing Board members, high representatives of the EBRD, representatives of global corporations and decision-makers, who will present the latest financing options for RES projects.

This February, in addition to representatives of companies from Bosnia and Herzegovina, Serbia, Croatia and Montenegro, company executives from China, Egypt, Turkey, the Czech Republic, Spain and numerous other countries have confirmed their participation in the Banja Luka Summit, which will create numerous opportunities for the development of the RES market, not only in Bosnia and Herzegovina but in the entire region.

BALKAN SOLAR SUMMIT IN FEBRUARY IN BANJA LUKA

“As the programme director, I would like to underline that the programme we have prepared for this year’s Balkan Solar Summit is truly top-notch. We have invested an extraordinary effort to bring together leading experts and innovators in the field of renewable energy sources, creating a platform that not only informs but also inspires. Each segment of our programme is carefully designed to encourage discussion, collaboration and new ideas. We gathered all the stakeholders in the chain of renewable energy sources projects, including investors, designers, financiers, traders and legislators, with the aim of encouraging cooperation, exchanging knowledge and creating a favourable environment for the development of solar, wind and other projects in the region,” said Ervin Leko, the Summit’s programme director.

“The Summit was conceived as a business event and a game changer in the world of renewable energy sources. Visitors will enjoy an exceptional programme with more than 50 experts who will discuss the latest trends and challenges in the industry. The stage and production will be at the highest level and we promise numerous networking opportunities, which will help our participants to establish valuable business connections and exchange know-how”, says Milena Mijatović, the Summit’s director.

Please click here to see available slots.

The Balkan Solar Summit is held under the auspices of the Ministry of External Trade and Economic Relations of Bosnia and Herzegovina.

Source: Balkan Solar Summit

CARS ARE ON AVERAGE GETTING LARGER, USING MORE FUEL AND OCCUPIING LARGER AREA

01.02.2024

parking_ulica — Foto-ilustracija: Unsplash (Vita Marija Murenaite)

Photo-illustration: Unsplash ( Neonbrand)

Purchasing larger-than-average cars has been gaining on popularity for many years in Europe. They often exceed parking spaces in cities, but they also use a lot more fuel. A recent study found that around half of new cars in Europe are too wide for standard parking spaces in cities, with their average width increasing by one centimetre every two years. The current average car width is 180.3 cm, while five years ago it was 177.8 cm.

Among the 100 most popular car models in Europe, 52 are too wide for typical 180cm-wide- seats. According to the European Federation for Transport and Environment, this trend, especially the growth in the number of large SUVs that are 200cm each, causes problems such as the lack of space for safe entry and exit.

Paris saw an increase in the popularity of larger vehicles, as did other European cities in the last decade. Besides taking up more space in the city, the size and weight of these vehicles is associated with a greater risk for pedestrians and a greater consumption of fossil fuels.

As we wrote before, precisely because of this, Paris will hold a referendum in a few days, which will allow citizens to express their opinion on new measures aimed at SUVs and 4×4 vehicles. This follows an earlier referendum on self-service electric scooters, which were ultimately banned in the city after 89 percent of the 103,084 citizens who voted supported their abolition.

The current focus is on large vehicles and the question of whether they should pay more for parking to free up space for more economical vehicles. The proposal includes increasing parking fees for SUVs and 4×4 vehicles, which are typically around 200kg heavier, 25cm longer and 10cm wider than standard cars.

The phenomenon also leads to more pollution, which is why Parisians will face a topic that directly affects the appearance and ecology of their city.

Energy portal

THE MANIPULATION BEHIND ECO-LABELLING

01.02.2024

eko — Photo-illustration: Freepik (freepik)

Photo-illustration: Freepik (macrovector)

Manipulation is a ubiquitous phenomenon and is as old as humankind. But as society, its values and priorities are changing, manipulation is shaped according to these changes. Consequently, as our time is coloured by ecology, deception has managed to find its place in this sphere as well.

You have probably noticed different symbols and signs that are environment-related more than ever before. Such words include green, sustainable, eco or natural, and in terms of colours, there is frequent use of the term „earthy“ or „green“. Photos, animations and sounds of nature are also hidden somewhere among these terms, like plants, animals, natural landscapes, sounds of birds, rain and more. Although as a society we are making more and more progress in terms of education and awareness of deception in various aspects, as well as environmental awareness, eco-manipulation is present.

Special attention is drawn to the problem of eco-labels and ecological claims on products, that is, whether these products really deserve to be labelled as good for the environment. Such labels should imply that the product reduces the consumption of energy resources, emissions of harmful and dangerous substances, or limited waste generation. Furthermore, there are claims that recycled materials were used during production or that the product can be further recycled or reused, etc. As it happens, these claims are sometimes not true at all or they cover up other, perhaps more dangerous, product properties.

The European Union has been tackling this problem of deception, which is also known as greenwashing, more seriously. Namely, as early as March 2022, the European Commission proposed that the rules on consumer protection be updated, while supporting the green transition. In September of the following year, the Parliament and the Council reached a temporary agreement on the updated rules, to be approved by the deputies in January of this year. Once this happens, the Council will give its official approval. After that, EU Member States are given two years to introduce the new rules into national legislation.

What does this agreement imply?

The agreement aims to improve product labelling and prohibit the use of inaccurate, unverified and ambiguous claims. In particular, the use of general claims such as environmentally friendly, natural, biodegradable, climate neutral and others, which are not backed by relevant evidence, is prohibited. In terms of labels, only those approved by public bodies or obtained through official certification programmes will be allowed.

What particularly caught my attention was the decision to ban claims of neutrality, reduction or positive environmental impact that rely on carbon offsets. In practice, carbon offset means the following – if, for example, two tonnes of CO₂ are emitted during the production of a certain product, the company will subsequently plant as many trees as necessary to compensate for those two tonnes of CO₂.

Another rule is that product warranty claims must be more visible and there will be a mark that will be assigned to those products that have a longer warranty period.

According to some sources, the first eco-label was created in 1977, prompted by the initiative of the German Ministry of the Environment with the view to improve environmental and consumer protection.

Last but not least, I would like to mention the dolphin-safe label, which shows why it is important to introduce stricter eco-label checks. Namely, such a label is found on tuna products, to highlight that no dolphins were harmed during tuna fishing. This term is also known as bycatch. The film Seaspiracy, which left a very strong impression on me and which I watched several times, explains the concept of bycatch in more detail and brings to our attention worrying figures that show the scope of the endangerment of sea creatures, but also explains the problem of manipulation using the example of the mentioned eco-label. When I started to investigate environmental deception, animal rights and biodiversity loss, this film shed light on a very complex subject and helped me to understand the core of the problem. I suggest that you watch the film, regardless of its accuracy, but as a recommendation to better understand the problem we face every day and to pay more attention in the future when buying products that are presented as environmentally acceptable.

Katarina Vuinac

ABB and Norwegian Cruise Line Holdings expand long-term partnership

31.01.2024

norwegianbreakaway-indestination-ff — Photo: ABB

Photo-illustration: Freepik (kdekiara
kdekiara)

ABB and Norwegian Cruise Line Holdings (NCLH) have signed a long-term partnership agreement to accelerate the decarbonization and digitalization of the Norwegian Cruise Line (NCL) fleet. Targeting increased safety and efficiency, the agreement covers 14 existing ships and a further four vessels due for delivery from 2025 to 2028.

The first phase of the partnership includes a 10-year Azipod® propulsion service agreement for the fleet, providing efficient preventive maintenance to support safety and maximize vessel availability as well as fast turnaround for planned Azipod® propulsion maintenance. In addition, ABB will supply modernization of the propulsion control system for 11 vessels, and shore connection installations on board four ships. With these planned installations the entire NCL fleet can connect to shoreside power supply for emissions-free operations while in port.

“We are pleased to solidify our long-term collaboration with ABB in a strategic partnership that aligns with our climate action strategy, centered as it is on the pillars of efficiency, innovation and collaboration,” said Patrik Dahlgren, Executive Vice President, Vessel Operations, Norwegian Cruise Line Holdings. “With ABB’s support, we will accelerate the decarbonization and digitalization of our fleet, taking our operations another step forward towards a sustainable future.”

“Norwegian Cruise Line Holdings is a highly valued partner of ABB, and this agreement reaffirms the strong collaboration between our companies. We are pleased to continue our collaboration and see our solutions and services playing an integral role in the modernization of their growing cruise fleet,” said Juha Koskela, Division President, ABB Marine & Ports. “Through this collaboration, we will help NCLH to achieve safer and more efficient vessel operations while, more broadly, contributing to maritime decarbonization.”

Based in the United States, NCLH operates vessels under three wholly owned subsidiaries: Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, all of which incorporate and utilize ABB technologies.

From its creation three decades ago to its leading position in shipping today, Azipod® propulsion has revolutionized marine transport by delivering unparalleled gains for performance, efficiency, sustainability and reliability. The gearless, steerable propulsion system, with the electric drive motor in a pod outside the ship’s hull, can rotate 360 degrees to increase vessel maneuverability and efficiency, while cutting fuel consumption by up to 20 percent compared to conventional shaftline systems. Since the first installation on a cruise ship over 25 years ago, Azipod® technology has saved more than one million tons of fuel in the cruise segment alone.

Source: ABB

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