Because of the Shipbuilding Boom from 2003-2013 the Ship Recycling demand is going to increase massively over the next few years.
The delayed recycling of older ships that only have become profitable because of the high shipping rates we are seeing now and the expected effects from the IMO EEXI amendment is only going to increase this steep rise.
This means that we will need extra Sustainable Ship Recycling Capacity to keep up with the demand. It would be a shame if ships will keep ending up on beaches only because of a lack of Sustainable Ship Recycling Capacity.
It is not only Sustainability and Capacity that are a challenge.
The reality is that Sustainable Ship Recycling is competing with Unsustainable Ship Recycling. The higher Shipowner Payout will be while recycling sustainably, the easier it will be to make Sustainable Ship Recycling the industry norm.
This is where our Supply Chain from Ship-to-Green-Steel comes in. The Steel industry is responsible for around 7% of total worldwide yearly GHG emissions. As you can imagine the Steel Industry is looking for ways to decrease their GHG emissions. Using high quality, sustainably recovered scrap steel in the steel making process can and will play a role in the Steel Industry’s decarbonization.
We believe that when we can ensure a steady supply of scrap to steel mills, we can become a valuable link towards producing Green Steel. This increases the value of our scrap and as we can produce a high volume of scrap as a result of sustainable recycling in series, we can increase Shipowner payout, thus raising the competitiveness of Sustainable Ship Recycling.