Danske Rederier (Danish Shipping) has announced a new agreement which secures nearly DKK 2bn to help companies, including fast ferry operators, which have the most difficulty implementing conversion to new, green, alternative sources of energy.
The agreement offers shipping companies better opportunities to carry out necessary investments in green conversion and new technology. Fast ferries are seen as an important part of Danish infrastructure and help to bind the country together. The agreement includes a transition period, during which restructuring support will be provided for companies that are particularly CO2-heavy and cannot convert here and now – including fast ferries. These companies will be given the opportunity to make the extensive investments necessary to carry out a green transition. Fast ferries are considered particularly difficult to convert due to their high energy consumption, and solutions based on electricity or e-fuels are not currently available on the market, and need development.
Kristian Duurhus, CEO of fast ferry operator Molslinjen said: “We are working day and night to change our high-speed ferry operation, which has some special technological challenges that bring our investments in green conversion of the high-speed ferries to several billion kroner. Therefore, we are very happy with the agreement, which appears to be both concrete and useful in terms of seeking the help that is necessary for us to reach our goal with our transition.”
Although shipping companies are working to carry out a green conversion of fast ferries, in reality they do not have the opportunity to switch away from fossil fuels before the Danish CO2 tax for the industry comes into force and the industry is included in the EU’s quota system.
Danske Rederier deputy CEO Jacob K Clasen said: “The high-speed ferries are critical infrastructure, so it is really good news that the government and a broad majority in the Danish Parliament take into account the special challenges that the shipping companies are facing with this agreement. A transition period that gives the shipping companies the opportunity to adjust is good news for the operators of the fast ferries. It is good for the many passengers. And that is good for the green transition. A really good and pragmatic green solution all round.”
Denmark has decided that a CO2 tax must be introduced, based on a tax rate of DKK 750 per tonne of emitted CO2 in 2030 for the companies that are not covered by the EU’s quota trading system and DKK 375 per tonne of CO2 emitted in 2030 for the companies covered by the EU’s quota trading system. The government has decided that, by 2030, DKK 2bn should be set aside to support transition by hard-to-abate companies, with domestic high-speed ferries specifically mentioned.
Image: Molslinjen high speed ferry (source: Danske Rederier)
