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How GASS helps shipowners face the future

23. jan. 2025

Contributing to the success of GASS is a way for shipowners like SinOceanic Shipping to secure their license to operate in an increasingly climate-conscious world.

SinOceanic Shipping is an Oslo-based container shipping and ship finance company with established business relations with some of the largest shipping companies worldwide, like Maersk and MSC. SinOceanic Shipping will supply two of the demonstration vessels deployed in GASS. In addition, historical data from a total of four of their vessels will provide valuable input to the project.


Why has the company chosen to commit to the GASS project? Deputy Technical Director of SinOceanic Shipping, Magne Aunebakk, highlighted three reasons: fulfilling their responsibility to reduce emissions, reducing future fuel costs, and securing compliance with ever-tougher environmental regulations.



With big emissions comes great responsibility


“Annual CO2 emission from shipping is now close to 800 million tons, from the combustion of about 250 million tons of fuels. This corresponds to 3% of total worldwide emissions. In the coming years, these 3% will grow in number to 10-20% as the global trade expands, and land-based industries cut emissions faster than maritime,” Aunebakk says.

The ambition of the GASS project is to cut emissions from a single vessel by up to 20%. Considering Navtor’s present market share in the global fleet, the total emissions from worldwide shipping can potentially be reduced by more than 5%. This corresponds to removing all of Norway’s CO2 emissions – including oil and gas production.



…and an increasing carbon tax bill

For those paying the fuel and carbon tax, emissions will also come with a cost. EU ETS has already introduced a carbon price on international shipping in Europe. The energy intensity requirement in the FuelEU Maritime, effective from 2025, will also be increasingly costly to comply with in the years to come.


These regulations are expected to be matched on the global level by a new CO2 tax and tightening Carbon Intensity Indicator (CII) requirements set by the International Maritime Organisation (IMO).


“If average fuel price will be around 1000 USD per ton HFO-equivalent fuel (including EU ETS or potential IMO GHG tax), then 5 % fuel saving due to the GASS project will correspond to a cost saving of more than 10 billion USD per year,” Aunebakk says. “And we all know the effect of FuelEU Maritime and IMO GHG strategy, if implemented, will significantly increase this figure over time.”



Securing a licence to operate

Increasingly, compliance with environmental regulations will also determine in which areas and for how long a vessel can operate commercially. Improving their environmental performance is therefore a way for SinOceanic Shipping and other shipowners to extend the commercial lifetime of their vessels and remain a valued customer for their clients.


“These requirements will be extremely hard to meet, even just a few years from now, so fuel saving will be extremely important. Especially because the availability of carbon-neutral fuel is limited and costly. So, if the GASS project succeeds, not only there is a huge potential to reduce the emissions from shipping, but also an enormous cost saving – and in fact an ability to meet the IMO emission requirements,” Aunebakk concludes.

We are thrilled to have SinOceanic Shipping as a partner in the GASS consortium!



 

About SinOceanic Shipping AS


SinOceanic Shipping AS is a private limited liability company domiciled in Norway within the business of international shipping. The company delivers management services to ship-owning companies. The company has an organization with extensive shipping, commercial, and technical experience with cost-driving operations outsourced. The fleet under current management consists of container vessels on charter contracts to world-leading container lines.




Postal address

Ytrebygdsvegen 215
(Telenorbygget/Y215)
5258 Blomsterdalen
NORWAY

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