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2018 • Officially supported by “Today, we have an advanced and high-tech offshore fleet. That is the case thanks to innovation in recent decades and the strength of the maritime cluster.” Harald Solberg, CEO of the Norwegian Shipowners’ Association, see page 10 Adapting to new realities Green power and propulsion pioneers Investment in digitalisation and autonomous technologyPublished August 2018 Editor: Ed Martin t: +44 20 8370 1723 e: ed.martin@rivieramm.com Sales Manager: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com Production Manager: James Millership t: +44 20 8370 1718 e: james.millership@rivieramm.com Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Head of Content: Edwin Lampert Head of Production: Hamish Dickie Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK www.rivieramm.com ISSN 2050-6929 (Print) ISSN 2050-6937(Online) ©2018 Riviera Maritime Media Ltd Contents Comment 3 Meeting tomorrow’s challenges today Economy and maritime exports 4 Maritime cluster propels Norway’s ‘wave of innovation’ 6 Exporters fly the flag for Norway overseas 7 IMO ballast water convention brings BWT boom 7 US research vessel and Russian trawlers to mount Norwegian deck gear 7 Demand for compressors across regions and sectors 8 Export financing helps bring Norwegian know-how to a global stage Shipowners and operators 10 Shipowners' Association: innovation drives the Norwegian fleet 11 Guarded optimism for 2018 across all shipowning segments 11 Support for IMO's common strategy to reduce emissions 12 Owners see cause for optimism 13 Østensjø Rederi wins award for LNG-fuelled tugs 13 Klaveness experiments with communications connectivity Shipbuilding and design 14 A fully electric future for Norway's Fjords 15 Ulstein thrives through diversification 16 Hybrid power systems offer lower emissions and fuel costs for OSVs 17 Rolls-Royce developing cradle and rail-based boat transfer method 18 Winds of change are blowing Propulsion 20 Brunvoll scores by offering the complete package 21 Stadt brings its lean propulsion to world markets Technology 22 Ferry operators focus on green solutions 24 Digitalisation drives an autonomous shipping future 26 Digital twins optimise vessel design, maintenance and performance High North and Arctic 28 Safeguarding life and the environment in Norway's polar regions 29 Cruise companies look to Norway for polar expertise 29 Hurtigruten backs Arctic HFO ban Norway in Asia 30 Perfect time to apply Norwegian expertise to Asia’s bright prospects Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner. Subscribe from just £49 Norwegian Solutions is published annually and supported by a quarterly digital newsletter. Norwegian Solutions provides a detailed and critical review of the latest developments within the Norwegian maritime cluster, aiding its global readership to make informed decisions when selecting their preferred business suppliers. Our editors draw on their many years of industry experience and knowledge of specific markets to report on both commercial and technical areas to make Norwegian Solutions an essential read for anyone involved in shipping. An annual subscription costs £49 and comprises 1 printed issue per year. Subscribe now, and you will also receive bonus material: • the latest issue content via your digital device • access to www.norwegiansj.com and its searchable online archive.+ SAFETY & RELIABILITY + VERY LONG LIFETIME + COST EFFICIENCY + STEALTH & HSE + MORE CARGO CAPACITY + LESS EMISSION AND FUEL DISCOVER THE POWER OF SIMPLICITY SMM Stand A1.101 ANCHORS & CHAINS Known as the largest stockist of anchors and chains in the world with approx. 20,000 tonnes of brand new and second hand anchors and chains in our yards in Norway, Scotland, The Netherlands and China. Tel: +47 56 32 68 50 Fax: +47 56 32 68 60 E-mail: sales@sotra.net Web: www.sotra.net Vindenes, 5363 Aagotnes, Norway WE ARE ANCHOR-CHAIN Rotterdam Shanghai Bergen Aberdeen Nantong EXTREME CONDITIONS BUTTERFLY VALVES FORwww.norwegiansj.com Norwegian Solutions 2018 COMMENT | 3 Meeting tomorrow’s challenges today I t would be tempting to think of the increased activity in the offshore oil and gas sector since the price started increasing again as a return to business as usual. But what struck me as I edited this 2018 edition of Norwegian Solutions, my first, is that in the case of Norway’s historically oil and gas- focused maritime industry, there is no such thing as business as usual. Shipping is often described as a conservative industry, but this does not seem to be the case in Norway. The common thread for many of the solutions featured in this issue is a recognition that adaptation is key to survival. When orders dried up from one source during the downturn, they were sought elsewhere, and Norway’s shipbuilders have lived up to their reputation for producing high-quality specialised vessels in these new areas. Builders such as Ulstein and Vard have applied the lessons learned from decades of building offshore support vessels, which weather the worst the North Sea can throw at them, to the burgeoning expedition cruise sector. The result is seaworthy vessels capable of enduring tough conditions while keeping passengers in a high level of comfort. The offshore wind market has also benefited from such expertise, with windfarm construction, service and crew-supply vessels sharing many of the same needs as OSVs, such as stability and good station keeping. However, oil and gas has been and continues to be important for Norway, and it is not being abandoned. But it is not just in vessel applications that ingenuity is evident. Whether it is Østensjø Rederi’s trio of LNG-fuelled escort tugs, the increasing numbers of hybrid-electric powered offshore support vessels or the numerous electric-hybrid and pure-electric passenger craft in use on the fjords, Norway is leading the world in developing ways to reduce emissions. In the case of Future of the Fjords, which operates in the zero-emissions UNESCO World Heritage fjords in the west of the country, emissions have been removed from the equation altogether. In digitalisation, too, there are a host of advances. Kongsberg is pioneering autonomous shipping, partnering with Yara and Kalmar on the Yara Birkeland project and establishing an autonomous vessel-focused joint venture, Massterly, with Wilhelmsen. Its latest acquisition, Rolls-Royce Marine, is itself making great strides in areas such as digitalisation and remote vessel management. And what strikes one in all of these areas is how much co-operation is evident. Whether official maritime clusters such as NCE Maritime CleanTech and Møre’s GCE Blu, or in projects such as the SARex tests of the Polar Code’s equipment requirements, industry, academia and the public sector come together to not just deal with the challenges of the present, but to anticipate and take advantage of the opportunities held by the future. As Jeffrey Lai notes, by applying the “early bird catches the worm” mentality Norwegian companies can prepare well and capture opportunities for growth. Aesop’s fable of the old man and his sons seems apposite. In the story, an old man has several sons that constantly fight. Nearing death, he summons them all and presents them with a tied bundle of sticks, challenging them to break it. They all, in turn, attempt to break the thick bundle and fail. The old man then unties the bundle and breaks each stick individually, explaining to the sons that in unity lies strength. Time and again when speaking to Norwegian companies, one is struck by the willingness to work together and share knowledge, with the mantra “we co-operate when we can and compete when we must” a common refrain, and for me this is what makes Norway a maritime world leader. NS Ed Martin, Editor NORWAY IS LEADING THE WORLD IN DEVELOPING WAYS TO REDUCE EMISSONSNorwegian Solutions 2018 www.norwegiansj.com 4 | ECONOMY AND MARITIME EXPORTS Maritime cluster propels Norway’s ‘wave of innovation’ F or Professor Torger Reve, who was instrumental in establishing Norway as a global maritime knowledge hub in the late 2000s, the low oil price in recent years was a clear call to the Norwegian cluster to diversify. Writing in 2016, he called for a “wave of innovation with knowledge from the oil and gas industries to be applied in other ocean industries”, and said “when activity level falls in our most important industry, we need to look for new strategic opportunities in related industries.” “What we see now is a reconceptualisation of the Norwegian industrial space from traditional maritime and offshore oil and gas industries to the much broader ocean industry concept,” he added. Two years on, the larger Norwegian cluster and the regional sub-clusters are chock full of examples of Professor Reve’s wave of innovation, with private industry, public bodies and educational institutions working together to meet the ocean industry challenge. Norwegian co-operation As well as its maritime heritage and established expertise in the shipping, offshore energy and fishing sectors, one of Norway’s biggest strengths is summed up in a phrase heard many times when talking to Norwegian businesspeople – “We co-operate when we can and compete when we must”. Such an attitude encourages sharing of knowledge and expertise that benefits all parties involved and wider society and is illustrated in the maritime clusters. Møre’s GCE Blue Maritime Cluster is one such example. Awarded the status of a global centre of expertise due to its unique market position and contribution to Norwegian value creation, the cluster aims to become a global hub for safe and sustainable commercialisation of advanced technology and operations at sea. The ‘blue’ aspect of the cluster relates to its view that the growing world population’s rapidly increasing demands for energy, food and minerals can be met by the ocean and that Norwegian companies are well-positioned to meet this challenge. The cluster is overseen by a steering committee whose members include captains of industry such as Ulstein’s Gunvor Ulstein, Havila’s Njål Sævik and Brunvoll’s Odd Tore Finnøy, and its activities are evident in many areas – diversification into new sectors by builders Norway΄s maritime clusters are diversifying out of the traditional fields of fisheries, offshore wind and oil and gas into the broader ocean industries ABOVE: OSRV Group provides integrated system booms, vessels, pumps, radar and scanning systems to tackle oil spillswww.norwegiansj.com Norwegian Solutions 2018 ECONOMY AND MARITIME EXPORTS | 5 and designers such as Ulstein, Rolls- Royce’s investments in digitalisation and Brunvoll’s push toward energy efficiency, to name but three examples. NCE Maritime CleanTech aims to unite Norwegian expertise as a springboard to develop energy-efficient, environmentally friendly maritime solutions. Participants come from across the supply chain, including energy companies such as Equinor, shipyards such as Kværner, suppliers such as Westcon and design companies such as Leirvik. Academic institutions such as the University of Bergen and the Norwegian School of Economics also contribute their expertise alongside public bodies such as local government and the Norwegian Navy. Zero emissions Speaking on the occasion of the Norwegian parliament’s resolution to make the World Heritage fjords emission-free, the cluster’s chief executive Hege Økland said “The decision on zero-emission fjords can secure our industry's position in this area, so that Norwegian business will be strengthened and we can provide green solutions to the rest of the world”. It certainly seems the cluster is well-positioned to assist in this. It has successfully produced projects such as MS Ampere, the world’s first battery-driven ferry, which crosses the Sognefjord and entered service in 2015. The ferry was built at the Fjellstrand yard, is operated by Norled and was classed by DNV GL. It has capacity for 260 passengers and 120 vehicles, is 80 m long by 20 m wide and is driven by two electric motors with an output of 450 kW apiece. Another such example is Viking Energy, the first hybrid offshore support vessel with a dynamic positioning system. Modified into a plug-in battery hybrid vessel by Westcon and Eidesvik to meet charterer Equinor’s requirements, the vessel has attained average reductions in fuel consumption of between 16%-17% and as much as 28% when operating in dynamic- positioning mode. Oil spill recovery And even outside the formal clusters, Norwegian co-operation is evident in projects such as the Oil Spill Recovery Vessel Group (OSRV), established by Framo, Maritime Partner, Norbit Aptomar and Norlense to provide a turnkey solution for oil recovery. Framo is a Bergen-based pump manufacturer; Maritime Partner is an Ålesund-based producer of high-speed rescue and patrol vessels; Norlense is based in Fiskebøl and produces oil spill containment booms; and Trondheim- based Norbit Aptomar makes safety and navigation equipment including infrared and radar systems. By pooling their efforts, the four companies together act as a total systems supplier of safe, highly functional and well- tested technology that covers all aspects of spill response, from detection and containment to recovery, a spokesperson told Norwegian Solutions. Aptomar’s radar performs the initial task of detecting a spill on the surface of the sea, with live data from its infrared sensors providing information on location, size, and heading. Maritime Partner’s high-speed vessels can deploy Norlense’s booms to contain the spill, with capability for 400 m of boom to be deployed by one person in just 20 minutes. When the booms are in place, Framo’s pumps can be brought into play with capacity to process 400,000 litres of oil per hour. The recovered oil can then be transferred to a tanker via Framo’s TransRec system. So far, OSRV has had a heavy focus on Brazil, with the system delivered more than 30 times in that country alone by the time the oil crisis hit, the spokesperson said. With the return to activity of the market, OSRV will initially focus again on Brazil, anticipating a rise in demand for oil recovery services. Cargo transport by UAV Safer Logistics from the Unmanned Logistics Helicopter project, which is investigating using unmanned aerial vehicles (UAVs) to transport cargo between offshore support vessels (OSVs) and installations. Currently, transfers from vessels to rigs and other installations mostly rely on cranes, with issues such as wind, visibility, waves and other weather conditions presenting challenges. The partners in the project are Fosnavåg-based Olympic Subsea, Sykkylven-based Griff Aviation, the Northern Research Institute (Norut) in Tromsø and Arendal-based Stable. Olympic Subsea owns a fleet of 11 offshore construction vessels and is participating in the project as an “active development partner”; Griff Aviation develops and manufactures drones to carry heavy cargo and will be addressing the issue of ensuring the logistics helicopter can operate safely in rough weather; Norut, the project leader, has developed autonomous control systems for UAVs, has experience operating them in northern seas and will be ensuring the logistics helicopter has a high degree of automation for departure, landing and delivery of cargo; and Stable specialises in motion-compensation technology and will be developing a stable platform from which the logistics helicopter will take off and land on moving maritime platforms. The engineering and technology department at The Arctic University of Norway, Norut’s majority shareholder, in Narvik is also lending its expertise to the project. Financial support is being provided by the Research Council of Norway. NS Norled's MS Ampere was the world's first battery-driven ferryNorwegian Solutions 2018 www.norwegiansj.com 6 | ECONOMY AND MARITIME EXPORTS Exporters fly the flag for Norway overseas G iven the country’s extensive maritime heritage and continuing involvement in areas such as offshore energy, fishing and other ocean-based areas, it is not surprising that ocean-based exports are key to the Norwegian export industry. The petroleum, maritime and marine industries together account for 70% of Norwegian export income, according to the country’s internationalisation and export strategy released in December 2017. The US, Brazil, China, Australia and ‘European countries’ were identified as key existing markets for Norwegian maritime exporters in the document, with China, Korea, Singapore, Brazil and Japan, with their strong shipbuilding sectors, identified as being of vital importance. Citing data from recent years, the report noted that in 2015 gross freight from international shipping constituted 7.2% and 25%, respectively, of total Norwegian exports of goods and services, with international maritime traffic constituting the largest export industry overall. In 2016 direct exports from equipment manufacturers accounted for more than 60% of maritime export revenue, which in 2013 was valued at Nkr233Bn (US$28Bn). “The maritime industries have been, are and will be important to the development and value creation in the ocean industries as providers of goods, services and competence,” the report said. Norway can benefit by sharing its competence in ocean industries with other countries, the report noted, adding “knowledge of maritime administration, sustainable management and resource utilisation from the ocean and the continental shelf is an export product in itself.” The government set out several measures intended to ensure “long-term and stable framework conditions for the maritime industry” in the document, with one measure being to “work to turn good Norwegian solutions into international standards”. The Explorer, launched this year, will hopefully further this goal. Developed in collaboration between the Norwegian Government, Innovation Norway, Sustainia, DNV GL and the UN Global Compact, the digital showroom provides a space for Norwegian companies to present green and sustainable solutions to the world. Visitors to the Solutions section can search by topics such as Energy, Ocean industries and High technology, to name just three, to find details of Norwegian companies providing services and products in these areas. Norway´s Government wants to make Norwegian solutions international standards by exporting the country's maritime expertise The largest cruise ship in the world, Royal Caribbean’s Symphony of the Seas, is fitted with a compressor system from Norway's TMCwww.norwegiansj.com Norwegian Solutions 2018 ECONOMY AND MARITIME EXPORTS | 7 A Norwegian solution that is arguably already an international standard is Optimarin, a Sandnes-based provider of ballast water treatment (BWT) systems. The company installed the first BWT in the world aboard cruise ship Regal Princess in 2000. Optimarin reported booming business in May and said it expected 2018 to overtake 2017 as its “best-ever year in business.” It added it had sold almost 60 of its Optimarin Ballast Systems (OBS) in the previous year and had contracts in its orderbook to provide a further 50, with recent customers including Besiktas Shipping in Turkey, Eureka Shipping in Cyprus, Japanese chemical tanker firm Koyo Kaiun and Germany- based Ahrenkiel Steamship. Optimarin’s US Coast Guard- certified BWT is environmentally friendly, utilising UV chambers to kill or inactivate any organisms, bacteria and pathogens present in ballast water. IMO’s Ballast Water Management Convention coming into force in September of 2017 is a major driver for much of this business, noted Optimarin chief executive Tore Andersen, saying “Shipowners and operators are now being galvanised into action by the ratification of IMO’s Ballast Water Management convention and the need to conform.” “This is excellent news for the environment and a positive development for those of us in the BWT sector that have invested many millions of dollars in testing, certifying and bringing our systems to market,” he added. Mr Andersen believes the company’s status as an established name in the BWT space has been a driver of sales, noting “This may be a relatively new regulation, but our customers want established solutions they know they can rely on.” IMO ballast water convention brings BWT boom When Royal Carribean International’s Symphony of the Seas, the largest cruise ship in the world, set sail this year it did so with a TMC marine compressor system aboard. The 18-deck ship can accommodate more than 6,600 passengers and a crew of 2,200. With a gross tonnage of 228,081 tonnes, it measures 361 m long by 65.7 m wide and STX France took took 36 months to built it. From November this year it will operate in both eastern and western areas of the Caribbean from its home port of Miami. “Every contract we sign and delivery we make is equally important in its own right, but we gladly admit that it is particularly cool that our equipment is providing service and working air on board the world’s biggest cruise ship,” said TMC director of sales and business development Hans Petter Tanum. TMC has seen demand for its systems across a range of geographical areas and sectors. It has signed multiple contracts with Hyundai Heavy Industries this year to provide compressed air systems for vessels including Teekay Offshore’s four LNG-fuelled shuttle tankers, three LNG carriers being built for TMS Cardiff Gas, and two separate contracts for a Swan Energy floating storage and regasification unit. Other customers have included Dutch yard UHC, building an integrated reel-lay vessel for UK-based Subsea 7, and Keppel Amfels, who picked TMC to provide systems for two new LNG-fuelled container vessels under construction for Pasha Hawaii. Mr Tanum said “It is always nice to be involved with vessels that are designed to keep both operational costs and harmful emissions to air to a minimum. “Not only is it good for our planet, but it is great to see that TMC’s compressor systems – with their low energy usage and high level of reliability – seem to be the favoured solution for such vessels,” he added. Bodø-based deck machinery specialist Rapp Marine has been picked as single-source vendor for Oregon State University’s new research vessel’s overboard-handling system with options for a further two vessels, as well as providing deck machinery for seven new factory trawlers. The multi-mission regional class research vessel (RCRV) is being built by Gulf Island Shipyard in Louisiana. The project is being funded by the National Science Foundation and the contract design for the RCRV was carried out by Glosten. The equipment to be provided by Rapp will be used for science mission and cargo- handling operations. It will comprise the oceanographic, hydrographic and portable winch systems for the vessel, which will supply tension members for the vessel’s handling apparatus. The equipment will incorporate Rapp systems such as electric variable frequency drives, active heave compensation and wireless control chest packs with CCTV display feeds. Explaining the decision to pick Rapp, RCRV project manager Demian Bailey said “Rapp has a reputation for delivering highly capable, dependable, and well supported products and is a great fit for our programme. These handling systems and controls will be at the core of these highly capable next- generation research vessels.” Murmanseld 2 is looking to Rapp to provide a full range of deck machinery to outfit seven new factory trawlers. Tromsø’s Cramaco is designing the trawlers with three being built at the Pella shipyard in St Petersburg and four at the Yantar shipyard in Kaliningrad. NS US research vessel and Russian trawlers to mount Norwegian deck gear Demand for compressors across regions and sectorsNext >