Azerbaijan Caspian Shipping Company plans to switch to methanol, electric-powered vessels as of 2027

BAKU. Nov 5 (Interfax) - CJSC Azerbaijan Caspian Shipping Company (ASCO) plans to decommission 65 outdated vessels by 2028 and begin transitioning to using methanol-powered and electric-powered vessels as of 2027, the company's press service said.

ASCO has developed its own decarbonization strategy and action plan in line with the International Maritime Organization (IMO) strategy for reducing greenhouse gas emissions from shipping vessels, the press service said.

The first stage of ASCO's plan in 2024-2027 envisages decommissioning 65 outdated and inefficient vessels with a total deadweight of 26,595 tonnes, which should reduce the shipping company's emissions by approximately 25%. The fleet will be regenerated with 17 new vessels.

"Replacing vessels with larger, higher-capacity, more energy-efficient ones is expected to reduce emissions by up to 9%," the press service said.

The second stage of the plan in 2027-2030 envisages constructing or acquiring methanol-powered and all-electric ships, as well as upgrading the existing ships.

"During this period, there are plans to construct five supply vessels, five passenger and seven methanol tankers and four electric port tug boats, as well as upgrade eight vessels to switch to methanol. Utilizing blue methanol on the vessels is expected to reduce emissions by up to 10% accounting for the increase in the deadweight of the fleet," the company said.

The third stage in 2030-2040 envisages transitioning to utilizing alternative fuels for the entire shipping fleet, thereby slashing emissions by 70%-80% compared to 2008 in line with the IMO goals.

The fourth stage in 2040-2050 envisages a complete transitioning to alternative fuels and zero-emission technologies.

ASCO has also prepared a short-term action plan, according to which the first three stages could be implemented by 2030.

"Operations are already underway to attract the appropriate financial support in order to accelerate transitioning to methanol-powered vessels," the company said.

Azerbaijan Caspian Shipping Company's fleet includes 22 tankers, 15 ferries, 14 general cargo vessels, two ro-ro vessels, two ro-pax vessels, and two handysize bulk carriers. The company also includes shipyards for repairs.