The World's First Fully Verified and Certified Carbon Positive Vessels Eligible for ITMOs
11 October 2022
Carbon Asset Developer Associates LLC (‘CADA’) is pleased to announce the world’s first fully verified and certified Carbon Positive Offshore Construction and Service vessel designs. Triumph Energy Ltd (‘Triumph’) has provided to CADA, designs and specifications that incorporate technology that reduces greenhouse gas (GHG) emissions, use alternative renewable fuels, use advanced energy recovery systems and certified sustainable materials for the vessels operations and construction. The technology and designs represent a significant milestone for decarbonization of vessels used within the offshore energy, decommissioning, and renewable sectors.
To meet IMO specifications for SOx and GHG, the shipping/marine industry are looking at various alternative fuel sources. Triumph’s designs have been verified by CADA to be Carbon Positive, a world first within the offshore construction maritime sector and its vessels are eligible for Internationally Transferred Mitigation Outcomes (ITMOs) pursuant to Articles 6.1 and 6.2 of the Paris Agreement (PA). Using the Paris Rulebook Article 6.2, CADA can help Triumph and Triumph’s clients:
Improve the business environment for investments in sustainable offshore construction and maintenance vessels used in the offshore energy, decommissioning and renewables sectors.
Improve the competitiveness of Carbon Positive vessels in the offshore energy, decommissioning and renewables sector.
Assist sustainable vessel builders and vessel owners with carbon equity that offset the increased costs to achieve sustainability.
Carbon trading is a significant part of the PA creating international demand and common pricing (exchange rates) for ITMOs. ITMOs will help all marine transportation sectors grow and expand with engines powered by low emission alternative fuels. Vessel builders and owners can utilize liquid and high yield ITMOs, generated from Triumph designs, to offset increased construction and conversion costs from building Carbon Positive. Triumph sustainable designs will drive job creation, technology transfer, and investment for its customers as a result. The interplay between Triumph vessels and the renewables sector will have a positive impact across the value chain. Competitive day rates and construction costs of Triumph vessels are catalyzed, by ITMO eligibility, and the calling patterns for our Carbon Positive vessels and those participating emerging nation capital improvement projects, will result in growth and expansion for both.
Triumph in conjunction with Lloyd’s Register (‘LR’) have announced a Joint Development Project (‘JDP’) of which CADA is pleased to be a contributing member for this landmark maritime decarbonization project. Although the Triumph designs are certified and proven to exceed the current IMO 2050 goals for emissions, the goal of the JDP is to develop a class notation that clearly measures a vessel’s reduced GHG emissions, carbon footprint and its sustainability throughout the vessels designed life or from ‘cradle to grave’. CADA will support the JDP with its distributed ledger technology, propriety systems and controls, that mobilize investment from public reporting companies and provide the measurement, reporting and verification protocols required to generate, export and purchase ITMOs.
Quoting the LR press release referencing the new notation.
“The new 100% sustainability notation will mean that vessels can be constructed and operated to meet the current IMO 2030 and 2050 requirements and will be built with the most sustainable materials that are currently available. The joint development project will also focus on integrating advanced over-the-horizon remote facilities and AI to reduce the manning levels required for offshore and back deck operations thus minimizing personnel exposure offshore and in hazardous areas and reducing the carbon footprint used in mobilizing and demobilizing personnel for offshore based operations.
Under this joint development partnership with Triumph that builds on Lloyd’s Register’s existing ECO notation, LR will support the creation of a landmark 100% sustainability notation that will evidence whether a vessel is certified as Carbon Positive and is compliant for all green financing. This will enable our clients to build and operate IMO 2030 and 2050 compliant vessels today.”
Gary Clyne CEO of CADA
“CADA is primarily a carbon financing business. We originate, structure, warehouse, and buy and sell carbon offsets, offering targeted solutions to both project owners and offset buyers. CADA combines a 40+ year track record in global financial markets with a deep understanding of low carbon project development utilizing American Renewable Identification Numbers, American IRS 45Q tax credits, California Low Carbon Fuel Standard credits, UN Climate Change Article 6.2 Internationally Transferred Mitigation Outcomes, and custom World Bank Group Carbon Partnership for Market Initiative funding mechanisms. We utilize this expertise to act as a participant in emission collection and avoidance projects internationally and to finance large-scale streams of carbon offsets for high-quality projects. We do this through long-term offtake agreements which provide the financial support projects need to develop and expand. CADA is proud to have been selected by Triumph and Lloyd’s Register as its carbon partner within the JDP.”
Gray Johnstone COO of Triumph
“On behalf of Triumph, I would like to thank Gary and the CADA team for the support and guidance that we have received from them in verifying that our Offshore Construction and Service Vessel designs are Carbon Positive and qualified for ITMOs and all other green finance mechanisms. Having achieved Carbon Positive and IMO 2050 compliance are two major milestones within the Offshore Construction and Service vessel sectors and pave a clear path forward for obtaining green finance. Obtaining vessel finance has always been a major barrier to entry and now, more so than ever with the stringent requirements for ESG compliance and verification of a vessel’s green credentials. Having achieved these two goals has significantly lowered these financial barriers of entry and thus paving the way for truly decarbonized and sustainable Offshore Construction and Service vessel sectors and in decarbonizing the maritime sector in general.
Triumph’s goal was to design and build truly sustainable vessels for use within the offshore energy, decommissioning and renewables sectors and this we can confidently say we have now achieved.”