Nedenstående tekst er indsendt til InnovationsFonden den 2. juni 2014 på vegne af Det Blå INNO+ samfundspartnerskab,
The parties’ vision and overall success criteria
The partnership's shared vision:
The overall vision is to promote Denmark as a maritime nation with cooperation between shipowners, equipment and service suppliers, shipyards, Research & Technology (GTS) institutes, universities and public authorities (jointly described as The Blue Denmark) creating joint solutions in order to optimize ship design and operation in all aspects.
Faced with the coming years’ environmental and energy efficiency regulations focus is to prepare the industry for that. In order to meet these regulations on emission reduction new innovations and development of technologies of high standard are urgent and necessary. Furthermore, the way must be paved for further reduction, e.g. on energy efficiency.
The objective for Blue INNOship is to develop technologies and methods to reduce emissions of CO2 with minimum 30-50%, and SOX and NOX by 80% compared to today’s standards and development of technologies to reduced noise from propellers by 3dB.
With the ultimate long term objective to implement the Danish solutions on the world fleet, it is the partnership´s ambition to create and maintain sustainable growth in The Blue Denmark’s areas of business; not only limited to those who are direct participants in Blue INNOship.
The partnership's overall success criteria:
The mentioned environmental and climate challenges are fixed targets, so success is primarily measured by providing solutions that fully meet the emission reduction goals.
Success for the shipowners will be – at a minimum – to enable them to be compliant with forthcoming legislation and regulations. And especially with energy-efficiency, going beyond the given levels of emission reduction.
For the equipment and service providers, success will be measured in relation to increased sales, to both Danish as well as foreign shipowners and shipyards.
For the entire Blue Denmark, improved competitiveness through new innovation will both create new jobs and keep existent jobs that otherwise might disappear in Danish companies, while the overall competence level will be simultaneously enhanced.
The stretched target is to develop technology that supports the vision of exporting Danish solutions globally.
The idea's present level of development and primary risks:
The goal is very ambitious, and with visions and objectives reaching beyond the INNO+ project time span. Denmark is amongst the leading nations in the global maritime sector – both within shipping and suppliers of marine equipment & services for shipowners.
However, there is a risk that The Blue Denmark will fail to bring new innovative solutions and ways of working together, to the market fast enough to strengthen its competitive edge on the world market. Energy-efficiency and emission reduction are already identified by other nations, which have already initiated innovation projects to a large extend very well sponsored by their governments.
Societal impact - Innovative solutions to concrete societal challenges
The partnership's concrete potential for enabling change, including the link between success criteria and the INNO+ challenge:
The strength of the partnership is the combination of highly competent technical, operational, commercial and academic resources available from the many different partners in the Danish maritime industry, aligned with public authorities. By combining these resources, it is possible to create solutions of a high professional level, providing value for businesses, research institutions and the society as a whole.
The objectives for the Blue INNOship are addressed in a framework model (described in below) for innovation activities required to address the challenges of the shipping industry, and hereby also the marine equipment and service suppliers, through a set of Work Packages (WP).
Focus areas have been selected by the Key Partners for those of most relevant for the industry. This was based on those having the greatest potential of fulfilling the overall objective of the partnership, in terms of the emission reduction targets, including the energy Qefficiency aspect and hereby the focus on growth and jobs. The specific projects will be defined within these WP’s, and structured in a short, medium and long term perspective.
By structuring the WP’s in this way, the different challenges addressed are those with the greatest impact as this will be in the interest of the end-user in form of the shipowner (and consequently shipyards and international shipowners).
By adapting this approach, the partnership provides the necessary commitment and focus to reach the targeted results and thereby developing solutions with positive impact for the shipowners, ship yards, marine suppliers and for society.
The partnership's impact on Danish research and industry – beyond the partnership's parties: ‘
The solutions that will be the outcome of the partnership will benefit from involvement of the universities, in order to maximize the potential emission reductions. This is not only of benefit to the companies in the partnership. Both institutes and universities will benefit from this as well, due to the development of long term competences which will add to the existing R&D capabilities and raise the educational level at the universities.
Further, by applying near-to-market research, the universities will be able to develop competences which are in demand by the industry and use these competences in order to develop the coming generations of technology. Thereby, the partnership enables the knowledge institutions in developing competences with direct value for the society.
In regard to the partnership’s ability to create growth and jobs, the structure is designed to involve other private companies of varying sizes, in order to develop the most innovative and efficient solutions for the industry. This will increase the reach of the Blue INNOship and create value to the specific project partners, and consequently their partners as the increased activity level in the companies will create increased activity in the layers surrounding these companies.
The frame will work as a demonstration model for various solutions, with mechanisms to move desktop evaluations all the way through to onboard tests. Making it easier for suppliers to gain access to test of their innovative ideas, shortening the way from innovation to implementation.
Barriers to the partnership's impact:
A number of both internal and external barriers are identified that might hinder success for the partnership. Internally it might be as practically as change of key resources in the organizations participating in the partnership, or failed steering of the partnership, or sale of possible test ships. Or it could be lack of ability to develop the needed solutions, lack of possibility to extract needed data from relevant operations, or non-agreements on non-disclosure agreements and property rights.
External barriers could be change of legislation or major shifts in the shipping markets, which are very economic sensitive. There can also be competition from possibly similar initiatives abroad, which need not be a barrier, if identified and possible inspiration on handling common goals can be extracted to joined benefit.
Market - Obvious business potential
The participating parties’ plan for commercialisation of the partnership's results (globally and nationally):
Parties have different roles in The Blue Denmark, and in the end different customer groups are targeted by the different parties. The direct customers for equipment and service suppliers are the shipowners and shipyards.
Two drivers exist for supplier solutions being in demand; one is the focus on pay-back time and cost/benefit by their ship owning customers, and the other is the need for shipowners to be in compliance.
Important customers are reached directly through the projects, where Danish shipowners will receive customised solutions to possibly implement on the rest of their fleet. This will position the shipowners well towards their markets. Consequently, results of the partnership can become immediate sales for suppliers if directly implemented on the participating shipowners’ fleet.
Shipowners can decrease their costs and thereby increase their competitiveness. This because they will be enabled to operate ships more efficient due to better performance and thereby save fuel costs, plus also save costs related to reducing SOX and NOX due to more efficient solutions developed. Further, knowledge on how retrofit solutions impact the whole system increase shipowners’ ability to make the best decisions regarding which components to install, thereby reducing costs by steering clear of inefficient solutions.
Equipment and service suppliers will be able to profit from the development of more attractive solutions for the shipowners, due to close cooperation in the Danish and global maritime industry, and due to development of new competences enabling them to create more holistic solutions. Also suppliers will gain insight to develop more efficient work processes, and thereby increase their productivity.
GTS institutions will have the ability of commercializing new products and services through development of knowledge and competences, and also support SME’s and other companies.
Concurrent with domestic sales, the global maritime market will be addressed as the solutions will be marketed through the companies’ existing channels. Outcome from the projects will be a significant driver there the position of the Danish shipowners will support possibilities of the Danish maritime equipment and service suppliers, who are recognised as being amongst the market leaders within energy-efficient solutions.
The results of Blue INNOship will primarily be sold through the maritime equipment & service companies, and GTS institutions. The suppliers can supply systems, services and consulting while the GTS institutes will provide information, recommendations, testing, verification and calculations. The universities will provide methods, models, research abilities and calculations to the end-users, and draw on their participation in large international projects and their network with international universities.
Market situation including relevant key figures:
The Blue Denmark employs 110,000 both directly and indirectly, and generates twice as high Gross Value Added (GVA) compared to the average GVA produced in the Danish society. A conservative estimate of the effect of accelerating the development of new and innovative technologies through the partnership is expected to add approx. 3,000 new jobs to this number. Based on following industry facts from Danish Maritime and Danish Shipowners’ Association:
- Danish maritime suppliers of equipment and service are amongst the leaders of emission reducing and energy-efficient solutions to the highly competitive world market where the importance of being in front with the best technology can only be underestimated.
- Before 2020 a number of regulations regarding the reduction of emissions of SOX, NOX and CO2 will come in force, thereby creating a much larger global market.
- Danish maritime suppliers are global players with an annual production of DKK 55 billion and a growth value increase of DKK 14.5 billion.
- The fleet controlled/operated by Danish shipowners represents roughly 7% of the world fleet measured in tonnage and delivers DKK 200 billion in foreign exchange earnings to the balance of payments. It is estimated that roughly 2/3 of the fleet controlled/operated by Danish shipowners holds retrofit potential.
- The possibility for retrofit is very important for the effect of partnership as the current market situation in most segments consists of over-capacity. Often retrofitting of vessels is a better business case in this capital intensive industry.
- The total market for retrofit solutions within SOX, NOX and CO2 before 2020 is believed to be DKK 1,100 billion. If the Danish suppliers’ share is increased with just one percentage of this market value, then it would contribute with DKK 11 billion to the companies’ top line. By acceleration the innovative developments through the partnership, the chance for increasing the Danish companies’ market share on the global market is supported in the best possible way and in accordance with the recommendations in the plan for growth in The Blue Denmark from December 2012.
The partnership's potential when comparing to competing companies, ideas and technology (state-of-the-art):
The different parties have different competitors in various segments. Aligned with the partnership’s vision and objectives the partnership considers competing companies as being foreign suppliers and shipping companies (those not being close business partners).
Technologies developed in Denmark for the maritime industry are in most cases considered as state-of-the-art, and Danish shipowners are generally recognized as first class.
However, as the maritime industry is driven by cost focus and payback schemes, quality alone is not enough. A joint target for suppliers and shipowners is the continuous development of new and more efficient products and services, in order to be competitive on both quality and price. The partnership shall ensure that both the Danish merchant fleet and maritime equipment manufacturers are continuously kept competitive on energy- and ship performance parameters.
The competitive advantage of the Danish maritime industry is nested in its ability to participate in interdisciplinary projects, thereby enhancing value chains by utilising the knowledge and competences of others. This ability is also present in our competitors’ environment, but the mind set and low cultural distance is supporting the development of cross-company innovations in Denmark, where the solutions integrate the input of both shipowners, suppliers, consultants, R&T institutions and authorities. This creates more holistic and sustainable solutions and thereby an increased value for the end-user and the society. The work of the partnership will further develop this ability and thereby shorten the distance between the different types of companies, authorities and organisations in the Danish maritime industry and around it.
Technology - Objectives and content for the funding period
Research and/or innovation content and ambitions:
The overall objective of the partnership is to accelerate the development of technologies and methods, through interdisciplinary innovation and research, to increase energy-efficiency of ships, and thereby contribute to reduction of CO2, NOX and SOX from shipping. Along with these goals, propeller noise shall also be reduced.
Significant reduction of emission from ships is not obtained through a single-objective focus, but must adapt different measures and various approaches. A framework of holistic work packages will be the basis of working together on the projects in the Blue INNOship, covering aspects on business, organizations, regulations, safety, monitoring and decision support.
When the projects within the various work packages are completed, and the long term perspectives addressed, ship emissions can be significantly reduced, due to the increased knowledge of the interdependency between the different components and systems on board a ship, and thereby also lead to more efficient ship operations.
The most important objectives for the funding period:
Development of technologies and methods to: Reduce CO2 emissions with minimum 30-50%, and SOX and NOX by 80% compared with today’s standards, and development of technologies to reduced noise from propellers by 3dB. Project areas defined as work packages are as follows:
WP 1 – Technical Solutions for Ship Design and Operation.
This covers development of energy-efficient ship design, incl. technologies for reducing energy consumption, for reducing SOX, NOX and noise, investigating alternative fuels and propulsion means, use of lightweight materials.
WP2 – Ship Operations and Performance Management.
This covers performance monitoring, data and operation analysis, online real-time onboard vessel decision-support tools, documentation and energy-efficiency awareness with crew and office involvement.
WP3 – Retrofit of Products and Systems.
This covers technology development and emission estimates, standard and methods for verification of retrofit solutions, and a decision platform.
WP4 – Life-Cycle Modeling and Monitoring of Ships and Products.
Covers development of a model for describing life-cycle of vessel and sub-systems, quantification of value, etc.
Dissemination will be an integral part of all WP’s coordinated centrally, involving the Advisory Board. Other important areas have been discussed during the process, but not part of the focus of the Blue INNOship partnership, but which are still of relevance to The Blue Denmark. We intend to seek other sources of funding to work on these topics, including Arctic Shipping, Maritime Logistics and Infrastructure, etc.