Global Experts Convene in Lisbon for the 2nd Edition of the Ship Recycling Lab
The global maritime and recycling sectors gathered in Lisbon on October 9-10, 2024, for the second edition of the NGO Shipbreaking Platform’s Ship Recycling Lab. The event brought together more than 100 participants, including ship owners, recyclers, policymakers, environmental advocates, and researchers from around the world. From Brazil to the Middle East, Europe, and beyond, discussions centered on the need for sustainable ship recycling practices that would benefit both the environment and the economy. Through expert panels, cutting-edge technology showcases, and policy dialogues, the event sought to drive progress toward safer and more environmentally responsible recycling methods.
A Global Perspective on Sustainable Ship Recycling
The gathering saw contributions from multiple countries, each sharing their unique challenges and solutions. Elegant Exit Company, a ship recycler based in Bahrain, detailed their experience in dismantling their first ship within a dry dock, a process that reduces the environmental impact typically associated with the less controlled beaching method. This achievement was a significant milestone for the Middle East’s efforts to create more regulated and eco-friendly ship recycling practices.
In Brazil, the state-owned oil company Petrobras introduced its new “off-the-beach” policy. This initiative marks a critical departure from the hazardous and environmentally damaging beaching method, long a staple in many parts of the world, particularly South Asia. Petrobras’ pilot projects are aimed at increasing the country’s ship recycling capacity through cleaner processes. By fostering domestic capacity for sustainable ship recycling, Brazil is positioning itself as a leader in the region for environmentally sound decommissioning practices.
In Europe, the Lab’s host country Portugal also had an important presence. Lisnave, a renowned ship repair company located in Setubal, revealed its plans to incorporate ship recycling into its portfolio of services. By doing so, Lisnave hopes to turn its yard into a hub for sustainable ship recycling in Southern Europe, reducing reliance on less-regulated facilities in Asia and promoting safe recycling closer to home.
Moving Towards Circular Economy Goals
Participants at the Ship Recycling Lab were especially interested in the potential of ship recycling to align with broader circular economy and climate objectives. One of the most compelling discussions centred around a ship recycling hub in Northern Germany. The region’s increasing demand for scrap steel, a critical component in the production of recycled steel, provides a ripe opportunity for sustainable ship dismantling and recycling.
In support of this, EuRIC, the European Recycling Industries’ Confederation, announced the creation of a new working group focused on embedding stricter safety and environmental standards in the EU Ship Recycling Regulation. This move is essential for ensuring a level playing field across Europe and pushing for industry-wide adherence to higher sustainability benchmarks. The revision of the regulation is expected to raise the bar for safety, environmental protection, and labor standards in ship recycling activities within the European Union.
The confederation also discussed the critical need for the steel sector to meet industrial decarbonization targets, something that can be significantly aided by responsible ship recycling practices. By improving traceability in the supply chain and ensuring that recycled materials are of high quality, ship recycling can become a key part of reducing carbon emissions in heavy industry sectors.
Technology Driving Innovation
Innovation was a central theme at the Ship Recycling Lab, where several companies and research projects showcased groundbreaking technological advancements aimed at improving the efficiency, safety, and environmental responsibility of ship recycling. Plasma and water cutting technologies were highlighted as safer, cleaner alternatives to the traditional gas cutting methods, which release hazardous fumes and contribute to air pollution.
Another exciting innovation involved the use of RFID (radio-frequency identification) tracking and blockchain technology to improve the management of ship inventories of hazardous materials (IHM). This innovation promises to enhance transparency in the disposal and recycling of harmful substances, ensuring that ships are dismantled in a way that minimizes their environmental footprint.
One of the most intriguing developments came from AF Offshore Decom, a company that is pioneering efforts to upcycle decommissioned assets. Their approach involves repurposing second-hand steel from decommissioned ships to produce certified construction materials with a significantly lower carbon footprint—95% lower CO2 emissions, to be exact. By repurposing materials that would otherwise go to waste, AF Offshore Decom offers a viable solution to reduce both industrial emissions and resource depletion.
In addition to these technological advances, several ongoing research projects were presented, each exploring different aspects of the circular economy in the context of ship recycling. Projects like SHEREC, Circles of Life, ReCab, and ShipRec are examining how material passports and artificial intelligence (AI) can be integrated into the ship recycling process to improve efficiency, safety, and environmental responsibility.
Setting New Standards for Decommissioning
Another significant announcement came from the International Association of Oil & Gas Producers (IOGP), which unveiled a new set of guidelines for the decommissioning of Floating Storage and Offloading (FSO) and Floating Production Storage and Offloading (FPSO) units. These guidelines prohibit the use of beaching and other substandard scrapping methods and discourage dealings with so-called “cash buyers,” intermediaries that have been criticized for enabling unsafe and unregulated shipbreaking practices in South Asia. By setting these stricter decommissioning standards, IOGP aims to elevate the industry’s commitment to sustainability and safety while curbing environmentally harmful practices.
Financing a Sustainable Future
Beyond technology and policy, the financial aspect of sustainable ship recycling was also addressed. The International Finance Corporation (IFC), part of the World Bank Group, presented new insights into how sustainable finance could play a critical role in fostering responsible recycling practices. The IFC discussed how blue bonds—financial instruments designed to support projects that benefit ocean health—could potentially unlock much-needed capital for sustainable ship recycling initiatives. By linking financing mechanisms to environmental performance, ship recycling could be integrated into broader global sustainable finance frameworks, opening up new opportunities for the industry.
The IFC also emphasized the importance of traceability in the scrap steel supply chain. By ensuring that recycled materials are sourced and processed sustainably, ship recycling could not only meet industrial decarbonization targets but also add value to the final product, making recycled steel a more attractive option for various sectors.
Conclusion
The Ship Recycling Lab in Lisbon underscored the growing global consensus on the need for sustainable, safe, and responsible ship recycling. From innovative technologies to groundbreaking policies and financing mechanisms, the event highlighted a path forward for the industry—one that protects both workers and the environment. With continued collaboration among governments, industries, and environmental groups, the ship recycling sector has the potential to become a cornerstone of the circular economy while contributing to climate and sustainability goals. The discussions in Lisbon made it clear that the future of ship recycling is not just about dismantling vessels—it’s about building a more sustainable world.
