Through this KR Decarbonization Autumn Issue,
we aim to contribute to the necessary collaboration and
communication for a sustainable maritime industry.

At the 80ᵗʰ session of the MEPC in July 2023, the IMO made one of the most historic decisions to adopt the 2050 carbon neutrality target and implement mid-term measures by 2027. These decisions will have a substantial impact on the maritime and shipbuilding industries. Industries are now confronting the unprecedented challenges of shipping decarbonization, prompting various technical and economic responses while also accelerating the development of innovative technology. In the "Regulatory Updates" section, we highlight the key decisions and their implications stemming from the 80ᵗʰ MEPC meeting.

Many technical and operational measures are being developed to improve the Carbon Intensity Index(CII), a short-term measure of the IMO GHG strategy which came into force this year. The CII is the most prominent index indicating a ship's fuel efficiency, and it closely relates to the carbon cost resulting from the mid-term measures that will be implemented from 2027. In this Autumn issue, statistics on the CII for over 1,700 vessels, verified by KR based on fuel consumption for 2022, are presented. Considering that only around 200 vessels are Korean flagged, this data presents a more global picture. According to the data, 68% of ships received grades of C, D, or E. Given that ships with a C rating are at risk of being downgraded to a D if no countermeasures are taken, immediate action is required. Furthermore, the number of ships in these categories is likely to increase annually as CII criteria are gradually tightened. This underscores the significant challenges shipping companies face in improving fuel efficiency. This issue also provides various statistics and insights on CII, along with strategies for its enhancement.

Fuel transition is the key measure to comply with IMO or EU GHG regulations. There are a wide range of alternative fuels currently under consideration, including LNG, LPG, methanol, ammonia, ethanol, hydrogen, batteries, small modular reactors, etc. The fuel storage systems, in particular, have a substantial impact on vessel layout, cargo capacity, construction costs, and overall ship operation. This issue offers a comprehensive overview of various aspects of fuel storage systems, including their characteristics, design, materials, temperature, and pressure, specifically for alternative fuels. Additionally, the issue reviews their influence on retrofit costs.

KR participated at GasTech 2023, held in Singapore, and awarded AIP (Approval in Principle) and signed JDP (Joint Development Project) with industry partners for large-scale ammonia carriers, liquefied carbon dioxide carriers, and cybersecurity. Collaboration with the industry on decarbonization and digitalization is expected to be further strengthened. Additionally, in the spotlight for the future of renewable energy production, KR successfully developed and launched SeaTrust-FOWT, which is over 1,000 times faster than existing software for floating offshore wind structures. Furthermore, a JDP was signed for the development of support vessels for offshore wind turbine maintenance.

In this era of decarbonization and digitalization, the maritime industry is making concerted efforts to identify the right solutions. However, significant technical and commercial uncertainties make it challenging to ascertain the best course of action with confidence. Despite this, there's widespread agreement that the most effective approach to finding optimal solutions involves collaboration and communication. Through this KR Decarbonization Autumn Issue, we aim to contribute to the necessary collaboration and communication for a sustainable maritime industry.