LR to support Shandong Marine Group’s green energy transition

Shandong’s economy is the third largest in China. The province, situated on the country’s eastern coast, has successfully modernized its marine sector in the past decade, adopting novel technologies as well as new energy sources and materials.

SDMG, through its various subsidiaries, has a diverse fleet that includes bulk carriers, containerships, and gas carriers. It claims to have the largest bulk fleet carrier fleet in China, owning and operating a fleet of Handysize, Handymax, Panamax and Capesize vessels.

The group is shifting its focus to developing green energy with pilot projects for onboard carbon capture systems and other decarbonization solutions gaining momentum.

Under the MoU, LR will act as a trusted adviser to SDMG supporting the group’s energy transition journey as it continues to trial new energy efficiency and emissions reduction technology.

In related news, Norwegian class society DNV recently published a detailed outlook on China’s energy transition. The report shows that the impact of China on the global energy transition cannot be underestimated with the country’s enormous green energy shift and its 33% share of the world’s emissions.

Specifically, China is set to increase its renewable energy installations five-fold; shifts its power mix from 30% renewables today to 88% by mid-century; in less than a decade has increased its solar power generation from 1 to 5%, but this will increase to 38% of electricity production by 2050. In addition, China will reduce annual emissions by 8Gt between now and 2050, which is three times as much as Europe’s emissions reductions, according to DNV.