What is it, and why is this topic drawing attention?
Driven by the mounting imperative to decarbonize maritime transport, most vessels built today are equipped from the outset with retrofit capabilities, ensuring readiness for alternative fuels beyond traditional fossil options.
But what exactly are retrofits?
Retrofits refer to technical upgrades made to existing vessels to meet new environmental and operational efficiency standards. These modifications may include the installation of scrubbers, ballast water treatment systems, energy-saving devices, digital monitoring tools, and, in some cases, full engine conversions to enable the use of alternative fuels.
Why are retrofits necessary?
The International Maritime Organization (IMO) has implemented more stringent regulations on sulfur emissions, carbon intensity, ballast water treatment, and NOx standards. Vessels that are not upgraded face higher operating costs, reduced commercial opportunities, and declining asset values.
What are the benefits of upgraded vessels?
What are the implications for investors?
Retrofit has become a structural requirement in today’s market. Owners who invest in vessel modernization secure access to premium charters and protect asset value, while fleets that fall behind risk being excluded from an increasingly efficiency-driven sector. EMF is fully committed to maritime decarbonization, constructing all vessels to top industry standards to ensure compliance with future fuel requirements and long-term market viability.
Sources: International Maritime Organization, Lloyd’s List, Science Direct