2.2 Driving the Business
towards Net Zero by 2050
Investing in Low Carbon Solutions
Driving the business towards net zero by 2050
Over the long-term, our priority is to build a successful business, that plays a large part in the energy transition by:
- Reducing emissions from operations
- Scaling up renewable energy investments and leading in building new low-carbon solutions for shipping
- Working with suppliers, customers, and authorities to develop technologies, business models, policies and frameworks required to support the Paris Agreement’s goals
Leading long-term industry changes
Global shipping has used oil predominantly as its fuel for over 100 years. Today, alternative fuels in shipping exist but have yet to become scalable to reach the net zero target in 2050.
As part of our commitment to innovation, Hafnia is continually exploring these alternative fuels and more environmentally-friendly solutions.
LNG Dual Fuel Vessels
Adopting Liquefied Natural Gas (LNG) as a fuel was one of the first steps in addressing our ambition for a greener future. Switching to LNG as a fuel provides significant benefits, such as improving overall air quality and reducing GHG emissions.
In 2020 and 2021, Hafnia, via the Vista joint venture, ordered four Aframax LR2 vessels equipped with high-pressure LNG propulsion technology, due for delivery in 2023.
These vessels are expected to emit negligible Sulphur Oxide (SOx) and reduce Nitrogen Oxides (NOx) emissions by up to 85% and GHG emissions by up to 23%.
Hafnia continues its partnership with Arq to accredit and introduce Arq Fuel as a key blend component for marine fuels. Arq has developed a novel, patented technology that transforms environmentally damaging coal waste into a micro-fine hydrocarbon powder (Arq Fuel). After securing the required accreditations, trials scheduled for the end of 2023 aim to confirm Arq Fuel’s compatibility for the approximately 1,200 vessels that Hafnia Bunkers Alliance procures fuel for.
Hafnia has successfully concluded several tests of Biofuel, and all vessels can operate on this CO2-neutral propulsion fuel when and if available on a sufficient scale.
Clean Hydrogen Works
In 2022, Hafnia announced its collaboration with Clean Hydrogen Works (CHW) to explore the development of a new, global-scale, clean hydrogen ammonia production and export project, Ascension Clean Energy (ACE), located on the west bank of the Mississippi River in Ascension Parish, Louisiana.
This project aims to capture up to 98 percent of CO2 emissions from its processes and will provide a cost-effective, scalable pathway to supply carbon-free energy.
Within the project’s scope, additional technologies are being explored which could result in zero carbon or even carbon-negative hydrogen-ammonia production at the facility.
Anticipated production is currently targeted by late 2027, with the shipment of clean energy commencing in 2028. Hafnia will also ship ACE’s clean ammonia to clean energy markets across the globe.
This marks a strategic step in shaping the future of the Hafnia transport portfolio, utilising purpose-built vessels against long-standing contracts in the zero-carbon space emissions by up to 23%.