By pioneering use of new, greener, cleaner fuels such as bio-diesel, UECC decreases the environmental impact of operating our legacy tonnage​.

Cleaner fuel

First carrier to have dual-fuel LNG PCTC’s, and to operate with cleaner fuels such as bio-diesel. We will also be first in our industry to have three LNG battery hybrid PCTC’s.​

LNG battery hybrid

With our revolutionary LNG Battery Hybrid vessels, we can reduce NOx emission by up to 90%, and we almost entirely eliminate SOx and Particular Matter emissions.​

Reduced NOx & SOx

By introducing synthetic and biogas into our energy mix, we further improve the already impressive CO2 reductions afforded by LNG.​

Reduced CO2

We install Ballast Water Treatment System onboard our vessels well in advance of IMO implementation requirement.​

Ballast Water Treatment System

Newbuildings will be delivered with main equipment for cold ironing, followed by running cold ironing projects with key ports.​

Cold ironing projects

We take part in a variety of cross-industry platforms. We are proud members of UN ​Global Compact Initiative, and partnered with ​the GoodShipping Program to reduce CO2 emissions on shipments by 85%​.

Partnership

On our path to carbon neutrality we reduced CO2 emissions by 38% per cargo ton/km, and SOx by 51% per cargo ton/km from 2014 to 2019.​

Cleaner future

Action plan

Shipping companies and cargo owners must grapple with significant commercial consequences from new environmental regulations that will result in high costs for emissions and a potential transport capacity squeeze due to a lack of suitable green tonnage, a UECC-hosted webinar was told.

All industry minds are focused on these market-changing measures - mainly the IMO’s Carbon Intensity Indicator (CII) being implemented this year and the EU Emissions Trading System (ETS) set to be introduced for shipping from 2024 - that are set to have a far-reaching financial impact.

This was reflected by the high attendance of some 95 participants from major European OEMs at the online forum at which DNV’s Director Environment Maritime Eirik Nyhus and UECC’s Energy & Sustainability Manager Daniel Gent shed more light on the regulatory changes.

The EU ETS, due to be phased in from 1 January next year subject to final ratification, will initially require shipping companies operating in European waters to buy and surrender EU Allowances (EUAs) for 40% of their greenhouse gas emissions from the use of fossil fuels, rising to 70% in 2025 and 100% in 2026.

The price of these EUAs, or carbon credits, will be determined by supply and demand but the volume of allowances available in the market or at auction will be rapidly reduced by the EU under the cap-and-trade system to incentivise energy efficiencies and a switch to green fuels.

“Prices are set to increase beyond the current level of €80-90 per tonne of CO2 that we see today as industry demand for EUAs is unlikely to shrink at the same rate as allowances due to the slow pace of decarbonization. Fuel equivalent pricing will therefore increase significantly towards 2040,” Nyhus said.

Furthermore, while the first deadline for surrendering allowances falls in September 2025, emission costs will kick in immediately from implementation of the ETS on 1 January 2024 as shipping companies will need to purchase EUAs on a rolling basis in line with their emissions to settle contracts with other voyage stakeholders while trading, according to Nyhus.

This will necessitate proper commercial arrangements in the value chain for equitable sharing of emission costs among stakeholders to avoid exposure to carbon price volatility, Gent said, though he added the consumer should ultimately bear these costs under the ‘polluter pays’ principle.

There is some cost respite for shipowners as a further EU tax measure, the Energy Taxation Directive, to remove exemptions for bunkers sold in the EEA that was due to be introduced this year looks to have been shelved for the time being, primarily due to energy price inflation in Europe.

On the operational side, the CII rating system of A-E is geared to reducing the carbon intensity of international voyages through measures such as slow steaming.

But Gent highlighted: “If you slow down vessels, but the volume of cargo to be transported remains the same or increases, then this will require more vessels that will increase costs and drive up charter rates due to tighter supply.”

The shortage of tonnage could be exacerbated by taking vessels out of the market to be retrofitted to meet the minimum C rating required under CII or be decommissioned, he added.

"There will be a premium for green tonnage that can operate at high speeds and carry large volumes of cargo but still achieve an A, B or C rating. These will be in high demand because those vessels offer flexibility while still complying with the regulation,” Gent said.

Consequently, UECC has invested in five advanced green-powered newbuild PCTCs, as well as fuel optimisation technology and alternative fuels on other vessels, to ensure strong CII ratings for its fleet while also reducing its exposure to the ETS by cutting emissions, he added.

“It is important for transport buyers to understand where their providers stand on meeting future regulations and whether they can meet their contractual obligations over the coming years,” Gent said.

He revealed there has been high interest from UECC clients in the CII rating of its vessels in relation to their own KPIs, and added “this metric now has a direct financial cost”. The company is now inviting clients to participate in ETS workshops to explain the complexities of the new rules.

Bjorn O. Gran Svenningsen, Director Sales & Marketing, UECC

New environmental regulations are set to lead to higher costs for the shipping industry Photo: 123RF/zamollxis

Regulatory insight: UECC and DNV count the cost for shipping of new green regime

(1) UECC Interview Auto Achieve 2022 FINAL - YouTube

If you want to understand why this unique type of vessel represents a very important part of the total logistics chain within the shipping sector, then please watch the interviews with our shareholders, Godmother & partners, as given during the naming ceremony of our 3rd multi-fuel LNG battery hybrid PCTC AUTO ACHIEVE at Logent / The Port of Gothenburg

UECC Interview Auto Achieve

UECC has captured the Greenports 2022 award for the most eco-friendly vessel, Auto Energy, as well as for the most eco-friendly fleet in recognition of efforts by the leading European shortsea Ro-Ro carrier to cut emissions.

The 2016-built Auto Energy topped the ranking of green ships calling at the German ports of Bremen and Bremerhaven with an Environmental Ship Index (ESI) score of 50.1 points last year, enabling the dual-fuel LNG-driven PCTC to secure the award for the second time after also winning it in 2019.

Port management company Bremenports, which has handed out the Greenports award since 2014, this year paid particular attention to the level of nitrogen oxide (NOx) emissions, given the need for performance improvements in this area.

The use of liquefied natural gas (LNG) to fuel the Auto Energy’s propulsion system results in a reduction of around 95% in NOx emissions, along with minimal discharges of particulate matter and sulphur oxide (SOx).

Both the Auto Energy and sistership Auto Eco, which were the world’s first dual-fuel LNG PCTCs to be brought into operation when they entered the Baltic trade in 2017, also deliver a reduction of around 25% in CO2 emissions through the use of LNG.

The Auto Energy measures 181 metres long and 30 metres wide with capacity to carry up to 4000 cars.

UECC, jointly owned by NYK and Wallenius Lines, also picked up the Greenports award for the most eco-friendly fleet with an average ESI score of 47.9 points after taking delivery of a trio of pioneering newbuild multi-fuel LNG battery hybrid PCTCs over the past year.

Built according to state-of-the-art energy efficiency criteria, these vessels exceed both regulatory requirements for emissions at sea and the IMO target for a 40% reduction in carbon intensity by 2030 compared with 2008 levels, while meeting the IMO’s Tier 3 NOx emissions limitations for the North Sea and Baltic Sea.

The trio - Auto Advance, Auto Achieve and Auto Aspire - are equipped with a shaft generator to charge batteries at sea so that they can run solely on battery power while in port to eliminate all harmful emissions, while they also have shore power connections.

In addition, the newbuilds are adaptable to run on lower-emission fuels such as bio-LNG and synthetic LNG as these become available in future. Two of these vessels, Auto Advance and Auto Achieve, have made calls at the port of Bremerhaven this year.

“This new generation of PCTCs are designed for enhanced sustainability in response to new environmental regulations and market demand - and are clearly already having a positive impact on the environment,” says UECC chief executive Glenn Edvardsen.

“The Greenports award is vindication of UECC’s ambitious efforts to cut emissions both through innovative development of green newbuilds and the use of alternative low-carbon fuels on its existing fleet.

“These accolades represent a significant honour considering the high number of vessels with an ESI score calling at these ports.”

The number of ships reporting an ESI score has risen to a total of 6896, after falling to around 4500 last year due to the introduction of a stricter limit for the sulphur content of marine, fuels, according to Bremenports.

The ESI, an international standard developed by the major North-West European ports as part of the World Port Climate Initiative, comprises the amalgamated scores for NOx, SOx and CO2 emissions. Additional points are awarded if the vessel has a shore power connection.

The ESI score is a figure between 0 and 100, where zero means that the vessel satisfies the IMO requirements and scores above zero mean the vessel outperforms these requirements.

Bremenports managing director Robert Howe said key criteria for the award were low emissions and regular calls at Bremen ports, as well as social considerations, “as we want the Greenports award to highlight good examples of sustainability in the shipping business”.

Consequently, this year’s award entailed for the first time confirmation from the International Transport Workers’ Federation that seafarers were paid in accordance with collective agreements.

[Photo caption #1:] Captain Rui Picarra (centre) receives the Greenports awards onboard the Auto Energy, with Bremenports representative Katja von Bargen (left) and Markus Schaeffer from Wallenius Wilhelmsen Ocean, UECC’s agent in Bremerhaven. Photo: Bremenports

[Photo caption #2:] The Auto Energy offloading vehicles at the port of Bremerhaven. Photo: Bremenports

Winning scores: Dual-fuel LNG PCTC Auto Energy tops ranking for second time as UECC gains Greenports double award

Latest from log book

The leading provider of sustainable short sea RoRo transportation in Europe.

First carrier ever to order 2 dual fuel LNG PCTCs

2014

Dual fuel LNG PCTCs introduced in to the European short sea network 

2017

First carrier ever to order 3 dual fuel LNG battery hybrid PCTCs 

2019

First in our industry to introduce bio-fuel

2020

Operate minimum 1 vessel on 100% biofuel for entire year

2021

3 dual fuel LNG battery hybrid PCTCs will be introduced in to the European short sea network.

2022

Reduce fossil oil share of energy mix by at least 30% vs 2015 baseline

2023

Incorporate min 10% rnewable gas in annual LNG demand 

2025

Achieve min 45% reduction in Carbon Intensity via energy choices & technical optimization

Navigating the way for a greener future

M/V Auto Advance In Europe

M/V Auto Achieve In Europe

M/V Auto Aspire Arrival in Europe

M/V Auto Advance In Europe

M/V Auto Achieve In Europe

M/V Auto Aspire Arrival in Europe

M/V Auto Advance In Europe

M/V Auto Achieve In Europe

M/V Auto Aspire Arrival in Europe

Focus on sustainability

90 %

85 %

23 %

“In front” road map.

2014

2017

2019

2020

2021

2022

2023

2025

2030

Action plan

Cleaner fuel

LNG battery hybrid

Reduced NOx & SOx

Reduced CO2

Ballast Water Treatment System

Cold ironing projects

Partnership

Cleaner future

Latest from log book

Regulatory insight: UECC and DNV count the cost for shipping of new green regime

UECC Interview Auto Achieve

Winning scores: Dual-fuel LNG PCTC Auto Energy tops ranking for second time as UECC gains Greenports double award