Report: Strong “green” maritime growth in Norway

This is the first time such a mapping exercise has been conducted in Norway. The analysis was carried out by Menon Economics on behalf of Export Credit Norway, Enova, NCE Maritime CleanTech and the Norwegian Shipowners’ Association.

Download the report here (in Norwegian only)

The objective of the analysis was to present the status of sales, exports and investments in green maritime industry, as well as outlining opportunities that can enable further growth. Although the numbers are very positive, the pace of the environmental transition is moving ahead too too slowly to reach long term Norwegian emission targets.

“It is nice to see that turnover from ‘green’ sales are increasing. However, the analysis reveals that the environmental transition is going far too slow to enable us to meet the target of a 50% reduction in emissions by 2050. We must speed up the process, and it is important that Norwegian authorities help accelerate the transition by taking an active role in securing stricter environmental regulations and emphasizing environmental conditions in public procurement”, says Hege Økland, general manager of the maritime industry cluster NCE Maritime CleanTech.

The survey shows that the maritime industry’s green turnover – that is, the use of technologies that completely, substantially or to some degree help reduce emissions of climate gases or other environmentally harmful gases – has almost tripled from 2014 to 2018, from NOK 9.3 billion to NOK 28 billion. Furthermore, in 2018 Norwegian shipping companies invested more than NOK 5 billion in vessels and technologies that can reduce emissions.

It is worth noting that these figures are minimum estimates, as sales and investments made by the shipping companies to make their fleet more energy efficient are excluded from the survey. The same goes for investments in onshore power supply at public and private ports. If these investments had been included, turnover and investment figures would have been significantly higher.

“In order to create a low-emission society, future sea transport must be almost emission-free. With its complete value chain, Norway is particularly well equipped to take an important position in this area, which makes the global transition in the maritime sector a great industrial opportunity for us. We are pleased that this analysis shows significant growth, which fits well with our own market experience that shows an impressive stream of innovatiions in the maritime industry,” says Øyvind Leistad, marketing director at Enova.

The world needs Norwegian technology

Norwegian shipyards accounted for NOK 8 billion of the green maritime sector’s revenue of NOK 28 billion in 2018. Equipment manufacturers, owners of offshore support vessels and technical service providers accounted for NOK 5, 4 and 4 billion, respectively, of the revenue in 2018.

Norwegian shipping companies’ investments of NOK 5 billion in vessels and technologies that reduce emissions include the installation of battery packs for hybrid vessels, construction of offshore wind vessels, conversion to or construction of LNG-powered vessels, and installation of so-called scrubbers – technology that cleans exhaust gas emissions from ships.

In total, green turnover and investments had an employment effect of nearly 8,000 new jobs in 2018, of which the largest effect was seen at shipyards where green turnover facilitated more than 2,000 jobs. The indirect employment effects through the maritime industry’s purchases of goods and services from other industries are not included in these figures. The real employment effect is thus even greater.

“The Norwegian maritime cluster is well-positioned to develop products around the world,” says Harald Solberg, CEO of the Norwegian Shipowners’ Association.

“Undoubtedly, the maritime industry in Norway has gained unique knowledge in the development and implementation of new green technology. This is know-how that will give us an important competitive advantage when IMO’s emissions strategy is launched and the entire international fleet have to cut emissions by 50 per cent by 2050,” Solberg adds.

High export level

The analysis also shows that around 30 per cent – more than NOK 8 billion – of the green revenues is generated from export sales. About half of Norway’s exports is generated by shipowners, while shipyards, technology services and equipment manufacturers account for about 40 percent of green exports. In total, the Norwegian maritime industry exports for more than NOK 200 billion annually.

“With an increased focus on emissions reduction internationally, a strategic commitment to more environmentally friendly solutions can significantly increase exports from the Norwegian maritime industry. The fact that several Norwegian companies in the maritime industry have taken the lead in making their activity more environmentally friendly gives the industry a strategic competitive advantage and creates opportunities for new jobs and sparks additional value creation. We will do our part by working closely with the industry to offer competitive financing to buyers of Norwegian, green maritime technology,” says Otto Søberg, CEO of Export Credit Norway.

Export Credit Norway offers loan financing to Norwegian and international companies that buy products and services from Norwegian exporters.