The Great British Energy Bill – opportunities for the shipping industry

Posted: 12/09/2024

Recent geopolitical events have highlighted the destabilising economic impacts of energy insecurities in many countries, including the UK. Confronted by the ongoing climate crisis and need for energy security, one of the Labour government’s solutions will be the acceleration of the development and investment in clean energy projects across the UK.

Enter the UK’s National Wealth Fund; a new strategic body that will invest public money, including in clean energy transition projects. This investment will be directed through a new publicly owned company, Great British Energy Limited (‘GBE’).

The recently drafted Great British Energy Bill (the ‘Bill’) will enable the creation of GBE and set its objectives as facilitating, encouraging and participating in the production and supply of clean energy, reduction of greenhouse gas emissions, improvements in energy efficiency, and energy security.

The government has already published a founding statement for GBE fleshing out how it intends to achieve these objectives. 

For the shipping industry, this presents opportunities, as the government is seeking to invest £1.8 billion for the modernisation and improvement of British ports. This is intended to prepare the ports so that they are capable of supporting new energy technologies, and are ready for the development of clean energy production, including renewables.  

GBE’s anticipated clean energy investments, particularly in renewable energy such as offshore wind, will require maritime logistics for their construction, maintenance and operation. This may, in turn, increase demand for support in the form of specialised vessels and sophisticated port facilities. The proposed investment into British port infrastructure will play a crucial part in ensuring that such activities can be accommodated, and the key objectives of the Bill can be met. It should also help support the global shipping industry on its transition to clean energy, to replace fossil fuels with the provision of infrastructure such as shore power and electricity supplies for electric vessels.

Both the investment into British ports and the objectives of the Bill are likely to influence and shape the future activities and operations of the shipping industry. 

Potential environmental gains and economic opportunities

• The use of clean energy in ports may support the development of green shipping technologies. Ports may invest in facilities to provide clean energy to ships, lowering emissions from maritime transport, and contributing to reducing greenhouse gas emissions and improving air quality, which is in line with the Bill’s sustainability goals.
• Use of shore power will allow vessels to plug into the local electricity grid whilst docked, which supports cleaner maritime operations.
• Upgrades in port facilities and infrastructure will create new jobs in maritime and energy, boosting local economies and offering new career opportunities for port communities.
• The expansion of offshore wind farms and other renewable energy projects could create new economic opportunities for the shipping industry, including the transportation of materials, and the construction and maintenance of offshore installations.
• The potential use of specialised vessels (eg electric or hybrid) could drive innovation and growth in the shipping industry, and further improve its environmental impact.

Regulatory and compliance challenges

• Offshore renewable energy installations can affect marine navigation and safety. The impact of these installations will need to be assessed carefully by ports, and mitigation measures put in place to ensure the safety of operations.
• Shipping companies will have to comply with much stricter environmental regulations, and likely adopt cleaner technologies and practices as part of the Bill’s objective to reduce greenhouse emissions.
• Ports and shipping companies will have to co-operate with local communities to resolve any concerns around environmental impacts resulting from their activities, and be open and clear about local projects and their developments.

What next and how to prepare?

Shipping companies can contribute to the objectives of the Bill by considering their own operations and exploring how they might enhance sustainability, energy security and affordability. More specifically, they might consider:

• a transition to low and/or zero emission fuels (eg green hydrogen, ammonia, biofuels etc);
• reducing emissions and improving energy efficiency by investing in hybrid or electrical vessels;
• implementing hull modifications, energy efficient engines, and/or advanced propellor designs;
• using shore power when docked to reduce emissions;
• working with the ports on green projects and energy efficiency upgrades;
• incorporating environmental regulations and standards set by the Bill into internal policies to ensure compliance requirements are met across the business;
• formally reporting to stakeholders on sustainability efforts and progress;
• investing in R&D in technologies which support energy efficiencies; and
• supporting and working on sustainability initiatives with local communities.

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