Representative Image/PexelsEstonia has emerged as one of the few European countries to offer financial support for ship green retrofitting projects. The Government of Estonia is helping the shipping industry steer towards a greener future with $28.2 million grant to encourage shipowners to carry out green retrofitting projects on their passenger, cargo, and other vessels at Estonia ports.
The grant incentivizes shipowners to upgrade their vessels through green solutions, such as installing exhaust gas cleaning systems, carbon capture technologies, and hybrid engines, among others, in an effort to increase energy efficiency and decrease pollution.
Kaupo Laanerand, deputy secretary general for maritime and water affairs at the Estonian Ministry of Climate, said the grant is a key milestone in the country’s drive toward greener, more sustainable maritime practices. “By supporting the adoption of innovative technologies, we are helping maritime operators reduce their environmental footprint and prepare for future challenges,” he explained. “With the maritime sector now included in the EU Emissions Trading System, this measure helps channel revenues collected from shipowners back into supporting their transaction to greener technologies.”
Shipowners Will Get Subsidies
Kuldar Leis, Estonian Minister of Infrastructure, said the global demand for cleaner maritime transport is growing rapidly. He believes the Estonian marine industry companies have the expertise and experience to deliver world-class retrofit services and support shipowners in making their fleets more environmental friendly. “From design and technical consulting to implementation and maintenance, Estonian ports offer convenient and efficient hubs for retrofit projects.”
Shipowners and operators who have been successful in applying for the grant, will receive subsidies which will cover about 15 to 30 percent of the eligible retrofit costs, up to a maximum of $5 million per project. The government will look at factors like the ship’s flag state, how frequently it visits Estonian ports, and what work will be carried out. Eligible upgrades include hybrid engines, green fuel technologies, exhaust gas scrubbers, shore power systems, and solutions that reduce vessel weight, or improve overall energy efficiency.
The grant is designed to support innovations that reduce emissions and enhance the energy performance of ships.
Friendly Transition
Laanerand said this support helps shipping companies transition their vessels to more environmentally friendly technologies, resulting in lower emissions and cleaner air, both at sea and the coast. “Estonian companies are well-positioned to deliver sustainable and innovative solutions, from general contracting and design, to building local supply chains and executing the full scope of work.”
Ragmar Saksing, General Manager of the Estonian Maritime Cluster, had earlier said the green transition presents a significant opportunity as the market urgently needs new solutions. “We have companies with extensive global experience in building and retrofitting ships, successful product development partners in research institutions, software companies with unique expertise in the maritime sector, and ports that have already joined green corridors, and are leading the adoption of green fuels in the region.”
He highlighted an advantage of the Estonian ship retrofit center – speed and flexibility. “While large shipyards in Germany or the Netherlands may have several months of backlog, processes can be completed more quickly in Estonia.” Saksing said this is supported by the simplicity of the systems, allowing for quick decision-making. “Everything can be done in one place: project planning, selection of green technology, installation, and testing. Even scientists and students participate in the process. This approach simplifies and accelerates services for foreign clients.”