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Shipping’s international regulator agreed new rules to slash the industry’s future greenhouse gas emissions on Friday, paving the way for the eventual end of oil as a maritime fuel.

While a full conversion to low-carbon fuels will take years if not decades, today’s newsletter looks at other new technologies buoying efforts to cut shipping emissions. You can read the full version on Bloomberg.com. For unlimited access to climate and energy news, please subscribe

Setting sail

By Todd Woody

Across the far reaches of the ocean, hundreds of yellow, beach ball-sized buoys called Spotters bob in the swell, silently measuring surface temperature, wind speed, atmospheric pressure and wave height. The real-time data they collect alerts cargo ship captains of the best routes to cut their carbon emissions.

At the waterfront offices of San Francisco startup Sofar Ocean, which makes the Spotters, a large wall screen displays the locations of the buoys and client ships as they crisscross the globe. As one owned by Singapore-based Berge Bulk rounds the Cape of Good Hope, Sofar’s service notifies the captain that adjusting the vessel’s trajectory to take advantage of a nearby ocean current would save $13,000 in fuel costs and reduce the journey’s carbon emissions by 11 metric tons. 

Rack of Spotter smart buoys by a window at the Sofar Ocean Technologies headquarters
A rack of Spotter smart buoys at Sofar’s waterfront headquarters in San Francisco. Photographer: Christie Hemm Klok for Bloomberg Green

About a thousand cargo ships subscribe to the forecasting service, called Wayfinder, which incorporates data collected by more than 500 Spotters spread over the open ocean. 

“Wayfinder has proven to be very accurate in forecasting and route optimization,” says James Marshall, Berge Bulk’s chief executive officer. “It’s a very integral part of our operations now, and a key way of reducing our carbon footprint.”

Route optimization is one of the technologies shipping companies are embracing as regulatory pressures grow to reduce greenhouse gas emissions in an industry that transports more than 80% of the international trade in goods and generates 3% of global emissions. With the conversion of shipping fleets to low-carbon fuels likely years if not decades away, ship owners are also installing high-tech sails on cargo carriers and testing onboard carbon capture systems. 

Moves to limit ships’ greenhouse gas emissions are spurring the adoption of such technologies. The International Maritime Organization, the shipping industry’s global regulator, on Friday approved draft rules mandating reductions in vessel emissions. The European Union in January began imposing a surcharge on ships that don’t meet its emissions standards. 

Sofar Ocean Technologies employees build their Spotter smart buoys in house
At Sofar’s San Francisco offices, technicians assemble Spotter smart buoys.  Photographer: Christie Hemm Klok for Bloomberg Green

Sofar’s technology is designed to provide more information than what satellites and other ocean monitoring platforms can do from afar. The Spotters generate real-time maritime observations that allow ship captains to make small changes in their routes that can add up to significant savings in fuel and emissions. 

“The ocean is a large place and you need lots of data to make a better weather forecast,” says Tim Janssen, Sofar’s chief executive officer.

Sofar’s Wayfinder service — what Janssen calls “Google maps for ships” — crunches data beamed to the cloud by the Spotters. Wayfinder incorporates the real-time data on ocean conditions into its weather models and then customizes a continuously updated forecast for each vessel, predicting fuel consumption and carbon dioxide emissions, that a captain can see on a web app or gets via email.

The Berge Olympus equipped with WindWing sails in Cape Town, South Africa. Courtesy: Berge Bulk

Up-to-the-minute weather data has become even more crucial as Berge Bulk and other carriers install sails on their ships. Unlike the canvas sails of 19th-century clipper ships, these sails are rigid, resembling vertical aircraft wings. And like airplane wings, they capture lift from the wind to propel a ship forward, reducing the amount of fuel burned to maintain speed.

Berge Bulk in 2023 retrofitted a 211,000-tonne cargo carrier with four, 123-foot-tall (37.5 meters) WindWings sails, saving six metric tons of fuel and 20 metric tons of CO2 per journey in good weather. Those benefits, though, depend on knowing in real time which way the wind is blowing, where and when. “The direction of wind is really important,” says Marshall. “It can be quite a light wind but in the right direction, it’ll provide really good thrust.” 

Among the more cutting-edge technologies that Berge Bulk and other shipping lines are trialing is onboard capture and storage of a vessel’s CO2 emissions. In March, Dutch company Value Maritime announced it had installed technology on a Japanese cargo ship that removes 10% of the CO2 from the ship exhaust and stores it in a tank until it can be offloaded in port for re-use or permanent storage. Berge Bulk also has begun testing Value Maritime’s technology on one of its ships, hoping to capture 30% of emissions. 

Startups Seabound in the UK and Carbon Ridge in Los Angeles are developing variations on Value Marine’s approach. 

Another LA startup, Calcarea, is testing technology designed to strip CO2 from smokestack emissions and transform it into a bicarbonate, a common marine salt, that is disposed of at sea as the ship traverses the ocean.

Calcarea's mobile prototype reactor Ripple 3, installed at AltaSea in the Port of Los Angeles
The prototype of Calcarea’s onboard carbon capture system at the Port of Los Angeles. Courtesy: Calcarea

For Marshall, the long-term return on investment for most of the technologies Berge Bulk is trying out on its ships, including a new initiative to install solar panels to power onboard systems, remains to be seen. But with regulatory mandates and the company’s commitment to operating a zero-emission fleet by 2050, the company isn’t betting on any single solution. 

“I really have two levers to decarbonize and one is to make my existing ships more efficient and the other is to either use a zero-carbon fuel or to capture the carbon that I emit,” he says.

For a more in-depth look at new maritime emissions-cutting technology, read the full story on Bloomberg.com. 

Weighing the costs

$380
This is how much per ton of CO2-equivalent emissions that large international vessels would be forced to pay as a penalty if they fail to meet base targets set by the IMO, according to rules agreed (but not yet finalized) on Friday. 

All tech on deck

"There's no silver bullet. It will be a combination of these different solutions that work in harmony to actually bring down emissions."
Ryan Bax
A lead consultant at maritime compliance and advisory firm Lloyd’s Register

More from Green

AI solutions are making a splash not just in maritime forecasting, but also weather models for precipitation and wind speeds on land. 

The proliferation of AI weather models in recent years is helping small, commercial firms develop hyper-local predictions, like when and how much it will rain in your neighborhood or how much wind will blow to spin a turbine.

For decades, public agencies have run global weather models that require supercomputers to crunch complex physics equations to spit out predictions. The need for more granular forecasts is becoming more pressing as climate change increases the odds of extreme weather, and AI is poised to offer a cost-effective way to provide them. 

Among the new players seeking to capitalize on commercial opportunities in forecasting is weather tech startup Stellerus, spun out of research conducted by scientists at the Hong Kong University of Science and Technology (HKUST).

Its novel method takes rainfall forecasts, then applies a machine learning algorithm to rapidly simulate and predict potential flooding for every Hong Kong street in under three minutes. Because the forecasts can be run so quickly, flood predictions can be produced hours ahead and then updated for near-real-time warnings.

Read the full story on Bloomberg.com — and to get more weather insights sent straight to your inbox, sign-up for the Weather Watch newsletter

A series of extreme rainfall events in Hong Kong in the past two years unleashed damaging floods citywide. Photographer: Justin Chin/Bloomberg

Australia is seeking to host next year’s climate talks. Adelaide will be host city for the COP31 global climate conference in 2026 if Australia’s government wins reelection and succeeds in a joint bid with Pacific nations to stage the United Nations-backed summit.

A new fund will boost Africa’s green building plan. Scalar International and Mergence Investment Managers Ltd. plan to raise as much as $150 million in a private equity fund to boost energy efficiency and install renewable-energy systems in 30,000 buildings in Africa. 

Billionaire Thiel joins board of uranium startup. General Matter, has raised $50 million in a funding round,  led by venture capital firm Founders Fund, to make high-assay low-enriched uranium. As part of the deal, Founders Fund partner Peter Thiel is joining the board. The company aims to help power the new generation of advanced nuclear reactors that researchers hope will come online in the next several years. 

Worth a listen

Even with all of the recent market turmoil, the energy transition isn’t taking a break. Last year, global spending on clean-energy technologies was more than $2 trillion, according to BloombergNEF. Yet only a small fraction of that money makes its way to developing countries. On the latest Zero, Avinash Persaud, climate advisor to the president of Inter-American Development Bank, joins the podcast’s Moving Money series, and answers the question: How do we make the financial system work for climate action, not against it? Listen to the full episode and learn more about Zero here. Subscribe on Apple or Spotify to stay on top of new episodes.

Avinash Persaud. Photographer: Hollie Adams/Bloomberg

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