HD Hyundai Marine Solution, a marine solutions provider operating under South Korea’s titan HD Hyundai, has shaken hands with compatriot HD Hyundai Samho shipyard and the French shipping behemoth CMA CGM to develop a standardized life cycle assessment (LCA) model for measuring carbon emissions in shipbuilding and shipping.
As an environmental assessment framework, an LCA serves as a tool for calculating carbon emissions generated throughout a product’s entire life cycle – from raw material procurement to the construction, operation and dismantling.
Under the memorandum of understanding (MoU) that the three parties signed, CMA CGM and HD Hyundai Samho will reportedly provide data on the CMA CGM Pointe du Piton —a 7,900 TEU dual-fuel liquefied natural gas (LNG)-powered containership. This Malta-flagged Post Panamax was delivered to the French major in August this year.
HD Hyundai Marine Solution’s role will be to create a ‘global standard’ carbon emission calculation model and, when the time comes, publish the LCA report and perform third-party verification for ‘reliable’ measurement of ship carbon emissions.
“We aim to standardize LCA measurements and integrate them with our eco-friendly ship modification and digital solutions to not only measure but ultimately reduce carbon emissions in shipbuilding and shipping,” Lee Ki-dong , CEO of HD Hyundai Marine Solution, remarked.
Once released, the LCA report with third-party verification is expected to be utilized for sustainability disclosures by European shipping companies.
Back in January 2023, Europe announced the Corporate Sustainability Reporting Directive (CSRD) , followed by the finalization of the European Sustainability Reporting Standards (ESRS) in July that same year. The CRSD has been applicable to large EU-listed companies starting 2024, while it will later apply to small and mid-sized enterprises within the region, together with some non-European companies that meet specific criteria.
At the same time, European shipping companies have been strengthening ESF audits of shipyards and have been working on implementing various methods for measuring emissions in response to CSRD.
As per Hyundai Marine Solution, should a standardized third-party verified LCA report be published, shipping companies could use it to meet their CSRD disclosure obligations.
Within the LNG space, Marine Solution’s parent company recently saw a big development, too. In October this year, HD Hyundai revealed a new ‘next-generation’ smart ship solution to support the efficiency of the vessels.
The Integrated Smart-ship Solution is an ICT-based vessel operation and equipment management system that collects ‘real-time data’ from onboard devices to offer analysis services for vital equipment. The latest ISS 2.0 version reportedly comprises a cloud platform originally developed by HD Hyundai Heavy Industries in 2017 in partnership with HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and HD Hyundai Marine Solution.