Wind Propulsion is Key for Shipping as Report Shows $400B Scrapping Crisis

[By: BAR Technologies]

A new report from the UCL Energy Institute has highlighted the looming risk of maritime asset stranding, stating that a rapid energy transition could “lead to ‘premature scrapping’ of over a third of the fleet, valued at over 400bn USD, unless they undergo costly retrofits to remain competitive in the wake of new GHG policies and wider energy transition.”

The report reveals that existing vessels and new builds on order will produce double the emissions permissible under a 1.5°C-aligned carbon budget, precipitating a slew of supply-side obsolescence and demand-side oversupply risks. However, wind propulsion provides an alternative pathway, delivering immediate efficiency gains that align with carbon intensity indicator (CII) benchmarks.

BAR Technologies, a pioneer in sustainable maritime innovation, underscores the criti…