Lessons learnt – SWOT analysis for the development of cold ironing in the Nordic region

For the purpose of getting a better understanding of the technolgy, implementation, challenges etc. the individual partners contributed with their expert knowledge.
For the purpose of summarising the lessons learnt The World Maritime University have undertaken a comprehensive SWOT analysis in relation to possible further development of the OPS infrastructure in the Nordic countries. The full study is available under references and the below table shows the key notes and conclusions from the SWOT analysis.

SWOT analysis for the development of cold ironing in the Nordic region

Strengths
  • Reduction of local air pollution from ships (NOx, SOx and PM).
  • Reduction of Vibration and Noise pollution.
  • Compliance with existent and future regulations.
  • Maturity of the OPS technology.
  • International Standards for OPS installations are available (ISO80005- 1:2019 HVSC and ISO 80005-3 LVSC).
  • Lower GHG emissions from ships at port.
  • Larger Auxiliary engine maintenance frequency.
  • Lower infrastructure cost compared
  • with other solutions (e.g. LNG).
Weaknesses
  • High investment cost for both port authority and ship-owners.
  • Long pay-back period.
  • Different frequencies (50/60Hz) for ships calling the port (need for frequency converters which are costly).
  • Technology available only on few ports.
Opportunities
  • EU and government subsidies and incentives to port.
  • Incentives to ships complying with OPS technology.
  • New job opportunities.
  • Collaborations with ship-owners and other ports.
  • Increasing customer demand to OPS facilities.
  • Tax reduction for electricity price.
Threaths
  • No general regulations adopted so far.
  • Competence with other alternatives (LNG, Low-Sulphur Fuel, etc.).
  • Safety issues due to high voltage handling.
  • Specific training requirements for onboard crew and port operators.
  • Local power supply and extra loads.
  • Lack of available space at port.
Please refer to Appendix I for more details regarding the SWOT.
In addition to the SWOT, a Sustainable Business Model Canvas analysis was also carried out – see Appendix II.

Incentives for the promotion of cold ironing in the Nordic Region – environmentally differentiated port and fairway dues

Some ports have encouraged shipping companies to take the environment into account by granting environmental discounts on vessel charges. The discounts are intended to guide shipping companies to introduce technology for reducing the emissions. The price reductions are based on environmental impacts. E.g. reductions in the charges for solid waste management are granted to vessels that sort their waste in the way approved by the port. Similar incentives are used towards those vessels using OPS.
Environmental sustainability concerns everyone. In this context environmental discounts act as an efficient incentive to the shipping companies to develop their ships in terms of environmental and climate performance.

Cold ironing in the future energy system and in the Nordic Region

There is ongoing work on expansion of OPS in ports to deliver not only electricity for use while the ship is alongside in port therby allowing for the ships’ auxiliary engines and generators to be stopped. Some OPS installations are additionally capable of delivering charging power for the ships’ batteries thereby enabling ships built with electrical propulsion systems to arrive and depart from the port in a zero-emission operation.

Insights in the European Union

Germany:
OPS in Kiel was taken into use in December 2020 by the ferry owners and operators Stena and Color Line.
OPS in Rostock / Warnemünde, which was completed in summer 2020, is currently one of the largest in Europe. With an output of up to 20 megavolt amperes (MVA), two cruise ships can be supplied with electricity at the same time in Warnemünde.
The port of Hamburg has announced plans for at least 2 OPS plants for cruise ships and 8 plants for container ships.
Last year it was announced that some 140 million EUROs had been dedicated to OPS installations:https://www.offshore-energy.biz/germany-promotes-shore-based-power-to-cut-emissions-in-ports/.

Rest of Europe and elsewhere

A number of public tenders are currently ongoing for cruise ports in particular the UK, France, Malta and other countries. A great number of more projects are underway.
Outside Europe a number of funding programs are available as initiatives to spark the uptake of OPS technologies. E.g. Canada co-finances 50% through Shore Power Technology for Ports Program:
https://tc.canada.ca/en/programs/shore-power-technology-ports-program.
Nordic Innovation