Liberian Registry Launches Green Ship Initiative

“We have launched a new initiative to help shipowners improve their green credentials and meet other corporate social responsibilities," said Scott Bergeron, CEO of the Liberian International Ship & Corporate Registry (LISCR), the U.S.-based manager of the registry. "Our aim is to ensure that Liberia remains the greenest fleet afloat."

He continued, “The Liberian administration welcomes any new technology and ship designs which improve operational efficiency and lower ship emissions to the atmosphere, including greenhouse gases.” 

As part of its ongoing commitment to environmental excellence, the Liberian Registry recently entered into a partnership with U.S.-based consultancy EfficientShip Finance (ESF) to launch an innovative environmental initiative designed to reduce global carbon emissions, enhance fleet efficiency and competitiveness and promote a greener Liberian fleet. The Liberian Registry is also offering special tonnage tax discounts for ships participating in this green initiative. Each ship in the program will be entitled to a 50 percent annual tonnage tax discount in the first year, and up to a 25 percent discount in both the second and third years. 

ESF’s partnership with LISCR offers a complete turnkey energy-saving solution for ships on a global basis with an add-on specifically crafted for Emissions Control Areas (ECAs). ESF will provide the financial capital needed for each project, and assume responsibility for technology performance and fuel volatility risk, along with the technical supervision and monitoring to perform retrofits. Owners and operators remit to ESF a proportion of the amount they save on fuel costs, or which they receive in the form of additional negotiated hire. The retrofit projects require no upfront capital by owners and, since the payments are always a share of the savings, there is an ongoing net benefit to customers.

Christian Mollitor, LISCR vice-president and project manager of the green initiative, said, “This represents a great opportunity for owners with ships delivered prior to the eco-boom to have their ships retrofitted with proven fuel-saving technologies. This is yet another example of Liberia’s innovative approach to help its shipowners to keep their lead in an increasingly competitive environment.”

The ESF global program includes an optimal mix of fuel efficiency retrofit solutions for each target vessel, based on its trading pattern, age, size, speed, and consumption. The technologies used represent the most widely accepted and tested solutions in the market including, among others, wake-improving ducts, rudder bulbs and fins, protracted tip propellers, engine improvements, smooth coatings, and performance and trim optimizing software.

For ships trading within ECA zones, the program may include the installation of exhaust scrubber systems or the conversion of engines to LNG dual-fuel, to comply with emissions requirements which came into effect on January 1, 2015. 

Mollitor said, “It should help owners and operators reduce fuel costs while creating the potential to increase hire or charter rates or achieve better pool points, and increase asset values in the secondhand market. It should also produce improved utilization rates and marketability and reduce port costs, freeing up funds for core business investments, including new ship acquisitions or just facilitating the preservation of cash reserves to make it through a tough market.”