ADNOC L&S drives global maritime innovation and sustainability

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With a vast fleet and operations in over 50 countries, ADNOC L&S is leading the charge in transforming maritime logistics with sustainable solutions

ADNOC Logistics & Services (ADNOC L&S) is a pivotal player in the global energy logistics landscape, offering integrated maritime services vital to the energy sector’s supply chain. Established from the strategic integration of multiple ADNOC entities, ADNOC L&S has evolved into a fully integrated maritime logistics powerhouse with a considerable fleet and provides extensive shipping, logistics, and marine services across the globe. With operations that stretch from the Middle East to over 50 countries, ADNOC L&S ensures the flow of essential energy supplies, including crude oil, gas, and refined products, reinforcing its critical role in maintaining global energy security and market stability.

Recently, sustainability has transitioned from a peripheral concern to a central strategic imperative. The drive for sustainability is fuelled by the urgent need to combat climate change and reduce environmental footprints across industries. Given the sector’s significant contributions to global carbon emissions, this imperative takes on added weight for maritime logistics.

ADNOC L&S’s commitment to sustainability is reflected in its proactive approach to integrating eco-friendly technologies and operational practices. The company’s dedication to reducing its carbon footprint aligns with broader industry trends and international regulatory frameworks to foster a more sustainable and responsible global maritime sector. 

The sustainability mandate
ADNOC L&S has firmly embedded environmental sustainability into its corporate ethos and operational strategy. The company’s commitment is driven by a clear understanding of the logistics sector’s environmental impact and a visionary alignment with the global energy transition. Recognised as a leader in the maritime logistics space, ADNOC L&S actively pursues initiatives to reduce greenhouse gas (GHG) emissions and enhance energy efficiency across its expansive fleet of vessels.

In its pursuit of sustainability, ADNOC L&S has embraced cutting-edge technologies and innovative practices. The company has notably invested in dual-fuel engine technologies and is progressively incorporating low-carbon fuels such as methanol, ammonia, and hydrogen into its operations. These efforts are complemented by significant investments in energy-efficient vessels designed to minimise the ecological footprint of maritime activities. ADNOC L&S’s strategic direction reflects its dedication to sustainability. It aligns with the ADNOC Group’s 2030 Sustainability Goals and the UAE’s Net Zero by 2050 initiative, positioning the company as a critical enabler of the UAE’s environmental objectives.

The global maritime sector is undergoing a significant transformation driven by urgent decarbonisation needs. This shift is primarily influenced by the International Maritime Organization (IMO), which has set ambitious targets to cut the shipping industry’s total annual GHG emissions by at least 50% by 2050 compared to 2008. The IMO’s strategy includes enhancing the energy efficiency of ships and accelerating the adoption of cleaner fuel alternatives.

Across the world, shipping companies, maritime logistics providers, and regulatory bodies are increasingly prioritising sustainability. Innovations such as LNG-powered vessels, electric ships, and wind-assisted propulsion are gaining traction, supported by regulatory frameworks incentivising lower emissions. Major maritime nations and commercial ports also adopt stringent environmental regulations to encourage cleaner operations and sustainable practices.

Economic and societal shifts also drive the push towards decarbonisation. Consumers and stakeholders demand more environmentally responsible supply chains, which compels companies to innovate and adopt greener technologies. This global trend towards sustainability is reshaping the maritime logistics landscape, compelling industry leaders like ADNOC L&S to innovate continually and adopt strategies that ensure environmental and business resilience in the face of changing global norms.

Decarbonisation strategies at ADNOC L&S
ADNOC L&S has strategically positioned itself at the forefront of the maritime industry’s shift towards sustainability through substantial investments in decarbonisation initiatives. Recognising the critical role of innovation in sustainable shipping, ADNOC L&S is committed to integrating advanced low-carbon technologies and alternative fuels into its operations to meet emerging global environmental standards and ensure the sustainability of its growth.

ADNOC L&S has proactively adapted its fleet to the evolving demands of energy efficiency and environmental compliance. The company’s approach includes incorporating dual-fuel engines that can operate on conventional fuels and lower-carbon alternatives such as LNG. These investments are part of a broader strategy to reduce the carbon intensity of its maritime operations and align with the ADNOC Group’s goal to decrease GHG emissions and advance towards achieving Net Zero by 2045.

A pivotal aspect of ADNOC L&S’s sustainability strategy is its focus on methanol, ammonia, and hydrogen as alternative fuels. These fuels represent the next generation of maritime energy sources due to their lower emissions profile than traditional marine fuels.

As a clean-burning fuel, methanol is gaining attention for its potential to significantly reduce air pollutants such as NOx, SOx, and particulate matter. ADNOC L&S is exploring the feasibility of using methanol as a primary fuel to power its vessels, providing an immediate solution to stringent emissions regulations.

Ammonia is another promising alternative because it does not emit carbon dioxide when combusted. ADNOC L&S is assessing the integration of ammonia-fueled engines and fuel systems into its new builds and retrofitting projects, positioning itself as an industry leader in adopting ammonia as a zero-carbon shipping fuel.

With the potential to revolutionise the entire energy sector, hydrogen is viewed as the ultimate clean fuel. ADNOC L&S is actively involved in research and pilot projects to harness hydrogen’s potential for maritime applications. This includes the development of hydrogen-powered vessels and infrastructure for hydrogen fueling, underscoring the company’s commitment to pioneering the adoption of hydrogen in the maritime industry.

New-build vessels and technological advancements
ADNOC L&S is actively advancing its fleet capabilities through the integration of new-build vessels equipped with dual-fuel engines. This is a key element of its strategy to meet stricter global emission standards and reinforce its commitment to environmental stewardship.

The company has made significant strides in modernising its fleet by incorporating Very Large Crude Carriers (VLCCs) equipped with the latest dual-fuel technology. These state-of-the-art vessels can operate on both conventional heavy fuels and lower-carbon alternatives like liquefied natural gas (LNG). This substantially reduces emissions of sulphur oxides (SOx), nitrogen oxides (NOx), particulate matter, and carbon dioxide, thereby minimising the environmental impact of their operations.

The dual-fuel engines allow ADNOC L&S to adapt to various fuel markets and ensure compliance with international maritime pollution regulations, such as the International Maritime Organization’s (IMO) MARPOL Annex VI. Implementing these engines is a proactive measure that addresses current environmental concerns and positions the fleet advantageously for future regulatory changes and advancements in fuel technology.

ADNOC L&S plans to increase its investments in environmentally efficient vessels as part of a broader corporate initiative to support the ADNOC Group’s sustainability goals and the UAE’s 2050 Net Zero initiative. These investments will focus on expanding the number of dual-fuel and alternative fuel vessels within the fleet, enhancing ADNOC L&S’s capability to reduce its carbon footprint further.

The projected investment increase aligns with the industry’s shift towards more sustainable maritime solutions. By focusing on cutting-edge technology and next-generation fuels, ADNOC L&S aims to meet emerging environmental standards and lead by example in the transition to a more sustainable maritime industry. This approach ensures long-term operational resilience and competitiveness in a rapidly evolving global market.

Operational efficiency and emission reductions
ADNOC L&S has implemented several strategic operational efficiencies to enhance its environmental performance across its maritime operations significantly. Central to these improvements has been the focus on reducing fuel consumption and carbon emissions, evidenced by the substantial enhancement of its Energy Efficiency Operational Indicator (EEOI).

The EEOI is a key performance metric used to measure the carbon dioxide emitted per tonne-mile of cargo transported. ADNOC L&S has achieved a 24% improvement in its EEOI across its shipping fleet, which is primarily attributed to several operational strategies.

The company has implemented smart navigation strategies, including optimising vessel speeds, known as slow steaming. By moderating vessel speeds, fuel consumption is significantly reduced, lowering emissions and improving the overall efficiency of shipping operations.

The company also employs advanced navigation and route planning technologies to choose the most fuel-efficient routes. These technologies consider various factors such as weather conditions and maritime traffic to minimise unnecessary fuel burn and reduce overall travel time.

Furthermore, ensuring the fleet meets the highest standards allows for optimal performance. This includes regular cleaning of the hulls and propellers to reduce drag and using energy-efficient technologies in new and retrofitted vessels.

The Al Daffah Energy Efficiency Project is a cornerstone initiative by ADNOC L&S to reduce fuel consumption and emissions across its fleet significantly. The project encompasses a series of measures designed to enhance the fleet’s operational efficiency and reduce its environmental footprint. Key components of the project include:

Advanced fuel management: Implementing stringent fuel management systems to monitor and control fuel use actively, ensuring that vessels operate within their optimal fuel consumption ranges.

Energy-efficient technologies: The integration of energy-saving devices such as air lubrication systems, which reduce resistance between the ship hull and seawater, and advanced engine tuning technologies that enhance combustion efficiency.

Crew training and awareness: Conduct extensive training programmes for the crew on energy conservation practices and new technologies. This ensures that all onboard are committed to achieving the company’s energy efficiency goals.

The impact of the Al Daffah Energy Efficiency Project has been significant, leading to a substantial reduction in fuel consumption and a corresponding decrease in carbon emissions. This supports ADNOC L&S’s sustainability goals and contributes to global efforts to mitigate maritime emissions in line with IMO regulations.

Source: Logistics Middle east 

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