IMO Net-Zero Framework advisory service

Our IMO Net-Zero Framework advisory service helps to understand the compliance cost impact on operations and to gain insights in order to develop the most financially viable strategy for newbuildings, existing ships or fleet of ships.

With the upcoming IMO Net-Zero Framework (NZF), it is more essential than ever for shipowners and operators to assess which strategies they can pursue for their fleet to effectively reduce GHG emissions and minimize the compliance cost impact.

The cost comparisons provided by DNV's advisory services enable shipowners and operators to identify the most financially viable approach and define their ship or fleet strategy accordingly. The comparisons include assessments of:

• The cost impact of various alternative fuel options and energy efficiency measures for newbuilds or retrofit of existing ships.
• The cost impact of changes in fleet composition, including fleet renewals and expansions.
• The potential for maximizing use of alternative fuels on some ships in the fleet to generate Surplus Units (SUs) and lower the penalty costs for the other ships in the fleet.
• Required volume of low GHG fuels over time for compliance.

These assessments can include a sensitivity analysis with different GFI factors, fuel prices, IMO Remedial Unit (RU) and Surplus Unit (SU) pricing, as well as Zero and Net-Zero (ZNZ) rewards, to name just a few.

DNV can also perform a technical impact assessment for alternative fuel installations or use of drop-in fuels (e.g., liquid biofuels) on a new or existing ship design (retrofits).

What you get with IMO NZF advisory service from DNV:

• Insights into the IMO NZF and possible future developments.
• Cost comparison of different compliance options for an existing ship, a new ship design, as well as for a fleet of ships, including an assessment of the impact of a business-as-usual approach and paying penalties.
• Identification of the most financially viable approach and corresponding strategies at the ship or fleet level.

DNV has a number of tools and services to support the above,including our Fuel Selector service and GHG Compliance Cost Optimizer, which assess the economic potential of different fuel and technology strategies. We also provide in-depth knowledge of essential parameters – such as GHG intensity factors, future fuel prices, CAPEX and OPEX costs – as well as the technical impact of fuel and technology strategies on ship design.