BW Group executive chairman Andreas Sohmen-Pao discusses the group’s decarbonisation efforts and how its investments are ‘seeding the future’
When it comes to decarbonisation, BW Group executive chairman Andreas Sohmen-Pao is encouraged by the actions and investments being taken by shipping.
Speaking at Marine Money 2022 in New York City, Mr Sohmen-Pao said: “This is an industry which is … almost more than others, taking the bull by the horns and saying let’s decarbonise.” While admitting this is not a worry among “every last player” in shipping, he pointed out that major maritime stakeholders were coming together to collaborate to reduce CO2 emissions from international shipping.
In speaking with Jefferies Group global head of maritime investment banking Doug Mavrinac at the event, Mr Sohmen-Pao highlighted his own company’s involvement in the Singapore Maritime Foundation’s formation of the International Advisory Panel (IAP) on Maritime Decarbonisation in 2020. The effort initially drew six companies – BW Group, BHP, DNV, Eastern Pacific Shipping, ONE and Sembcorp Marine – initially injecting S$10M each into IAP, which was followed by an additional S$60M from the Singapore government through the Maritime and Port Authority (MPA). This led to the formation in August 2021 of the Global Centre for Maritime Decarbonisation (GCMD), which was created to help the maritime industry meet or exceed IMO’s ambitious goals for greenhouse gas reductions for 2030 and 2050.
“These are people who are putting money and time behind this effort”
Others, such as BP, Chevron and Hapag-Lloyd, have since joined in. “These are people who are putting money and time behind this effort,” said Mr Sohmen-Pao. The life’s blood of the centre will be R&D and pilot projects that will bring together a cross-section of stakeholders – academia, bankers, shipbuilders, engine designers, energy companies, shipowners and start-ups – to solve the decarbonisation conundrum. The centre builds on Singapore’s status as one of the world’s largest bunkering ports and transhipment hubs, with the hope of making the country a Silicon Valley for maritime decarbonisation.
When it comes to investing in the energy transition, there are few that can compare with the BW Group’s portfolio. As one of the world’s largest shipowners, BW Group’s shipping interests include BW LNG, BW LPG, Navigator Gas, BW Epic Kosan, BW Offshore, BW Energy, Hafnia, DHT and BW Dry Cargo.
While he called these companies “the engineroom” that creates the cashflow and returns, Mr Sohmen-Pao said the younger, start-up companies are “seeding the future” in solar, offshore wind, digital, real-time weather, sustainable fertilser, batteries, biogas and water treatment.
While voicing concerns over the state of the stressed global supply chain, the Russia-Ukraine conflict and the looming shadow of a food crisis, Mr Sohmen-Pao struck an upbeat note.
“I’m worried about the world in the next two to three years, (but) I’m pretty optimistic on the 10-year horizon because humanity is pretty amazing. We solve problems, and we’ve been through tough times before,” he concluded.
