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Cargill CEO’s Daring Plea to Shipowners: Immerse in Wind Energy Revolution for Unprecedented Gains

Title: Harnessing Wind Power to Decarbonize the Shipping Industry

Introduction:
As the world strives to reduce carbon emissions and combat climate change, the shipping industry, which is responsible for a significant amount of global trade, is facing mounting pressure to decarbonize. In an effort to explore alternative energy sources, Cargill, one of the largest shipping operators, is advocating for the use of wind power. This article will delve into Cargill’s push for wind-propelled ships and the challenges facing the shipping industry in its decarbonization efforts.

1. A Case for Wind Power:
Cargill’s shipping chief, Jan Dieleman, asserts that wind power has been underrated in the industry’s pursuit of zero-carbon fuels. Despite centuries of using engines instead of sails, Dieleman believes wind power deserves a chance. He acknowledges that some shipowners are skeptical due to technical concerns and the reluctance to alter their vessels. Additionally, shipowners may hesitate to invest without support from their customers.

2. Cargill’s Previous Venture:
Cargill previously collaborated with German company SkySails in 2011 to install a giant sail on the cargo ship Aghia Marina. However, the project faced obstacles, highlighting the challenges associated with implementing wind marine propulsion.

3. Decarbonizing the Shipping Industry:
The international shipping industry, which accounts for up to 90% of global trade, heavily relies on fossil fuels, making its decarbonization a crucial goal. Regulators and key customers such as Amazon, Unilever, and Ikea have pledged to transition to zero-emission ships by 2040. However, shipowning groups are divided on the best solutions, with some exploring alternative fuels like methanol and ammonia, while others consider wind-powered solutions such as giant kites.

4. The Wind-Powered Vessel:
Cargill recently launched the bulk carrier Pyxis Ocean, which is fitted with two 37.5-meter sails and chartered by the agricultural group from Japan’s Mitsubishi. The vessel is capable of carrying up to 81,000 tons of cargo and is likely to transport corn from Brazil to Denmark on its maiden voyage. Dieleman acknowledges that Cargill cannot shoulder all the risks associated with implementing wind power and may struggle to profit from the initial investment.

5. Practicality and Limitations of Wind Power:
While wind power is seen as a viable option, its practicality is limited. Container ships, which have less deck space, may find it less feasible to accommodate sails. The availability of favorable wind conditions can also affect the effectiveness of wind propulsion. Environmentalists argue that stronger regulatory incentives are necessary to encourage shipping groups to invest in green technology.

6. Industry Challenges and Future Prospects:
The International Maritime Organization (IMO) set a goal for shipping to achieve net-zero emissions “by or around” 2050. However, critics argue that the targets offer too much leeway for the industry to delay decarbonization. Cargill aims to reduce emissions in its supply chain by 30% by 2030, viewing wind power as only one piece of the puzzle. The industry must explore biofuels and shift towards innovative solutions to achieve its sustainability goals.

Conclusion:
The shipping industry’s decarbonization journey is gaining momentum, with Cargill advocating for wind power as a viable alternative. While challenges and limitations exist, the industry must continue to explore and invest in sustainable solutions to minimize its environmental impact. By embracing wind propulsion and other green technologies, the shipping industry can play a significant role in combating climate change and shaping a more sustainable future.

Summary:
Cargill’s shipping chief has urged the shipping industry to consider wind power as a viable solution for decarbonization efforts. Despite initial skepticism and technical concerns from some shipowners, Cargill believes wind power has been underrated. The company recently launched the Pyxis Ocean, a bulk carrier fitted with two sails, to explore wind-powered shipping. However, practicality and limited application remain challenges. The shipping industry is divided on decarbonization strategies, with alternative fuels and wind propulsion being considered. Stronger regulatory incentives and innovation are necessary to drive the adoption of green technology. As the industry moves towards net-zero emissions by 2050, wind power can play a crucial role in achieving sustainability goals.

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Cargill’s shipping chief has called on the shipping industry to give wind power a chance in its decarbonisation efforts, as one of the world’s largest shipping operators prepares to test the use of sails on a ship medium size.

Jan Dieleman, president of the US agribusiness trader’s shipping business, said some shipowners were too skeptical proposals to propel large cargo ships using the windhundreds of years after sailors began using engines instead of sails to power ships.

He added that wind power has been “underrated”.

“We have an industry that has focused solely on zero-carbon fuels for a long time,” he said. “Some people are sceptical [of sails] from a technical point of view and feel strongly that you shouldn’t alter their vessel. [Other shipowners] I don’t want to take all the risks [of investing without support from their customers].”

Cargill had a previous foray into wind marine propulsion. In 2011 he announced an agreement to install a giant sail on the cargo ship Aghia Marina, in collaboration with the German company SkySails. In a 2015 update, Cargill said yes project with SkySails had “encountered obstacles”.

Dieleman’s comments come amid a contentious debate between countries over how to decarbonise the international shipping industry, which carries up to 90% of global trade but remains almost entirely dependent on fossil fuels. The sector faces increasing pressure from regulators and from customers such as Amazon, Unilever and Ikea, who have pledged to use only zero-emission ships by 2040.

The shipowning groups that invest in decarbonization, however, are divided on the best solutions. Companies are betting on a range of fuels including methanol and ammonia, as well as giant kites that can use the wind to propel ships, despite concerns that alternative fuels could accessible or widely available.

Jan Dieleman, president of Cargill’s shipping business: ‘Are we going to get our money back for this? I do not believe. . . It’s a proof of concept’ © Victor J. Blue/Bloomberg

Dieleman spoke to the Financial Times as Cargill launched a vessel, chartered by the agricultural group and owned by Japan’s Mitsubishi, which he said was fitted with two 37.5-metre sails. Dieleman said the bulk carrier Pyxis Ocean, which can carry up to 81,000 tons of cargo according to data provider MarineTraffic, will likely carry corn from Brazil to Denmark on its first shipment.

But admitted that Cargill, which in turn was criticized for leading deforestation and climate change, could not assume all the risks for the shipping sector. He added that the trading house may struggle to profit from its initial investment in the wind-powered vessel.

Danish company Maersk, the world’s second largest container shipping group, had previously sold a vessel after analysis found that installing sails on the vessel led to a drop in fuel consumption of only 8% in one year.

“Are we going to get our money back on this? I do not believe. . . It’s a proof of concept,” Dieleman said, declining to disclose how much Cargill had invested. But he said low-carbon alternatives like green methanol or ammonia currently cost up to four times as much as fossil fuels, meaning wind power could be used alongside green fuels to save money if will be successful.

Governments have also supported the restoration of wind power. Last year, six countries including France and Spain submitted a paper to the United Nations International Maritime Organization (IMO), stating that wind propulsion systems were “ready, mature enough and available” to help reduce emissions.

Climate experts also agree that wind could play a role in decarbonising shipping, but add that its role is limited in an era where shipowners are using ever-larger vessels to serve customers who expect expeditious shipments. and reliable.

Tristan Smith, a maritime and energy researcher at University College London, said using sails is “generally viable” but less practical on container ships, which have less deck space or on routes where the wind is less favourable. . Environmentalists have also said stronger regulatory incentives are needed for shipping groups to invest in green technology.

In July, IMO diplomats agreed on a goal for shipping to reach net-zero emissions “by or around” 2050. The result, which followed lobby against stronger targets by countries including Chinait has been criticized for giving industry too much leeway to delay decarbonization.

Cargill has a goal to reduce emissions in its supply chain by 30 percent by 2030. Dieleman said wind power is just one piece of the puzzle to achieving that goal.

“There are factors you can control and factors you can’t,” she said. “We need things like biofuels to be distributed. . . If the industry doesn’t do anything different than today, we won’t get there.”

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