MSC Confirms Two Hydrogen-Powered Ships for Explora with Fincantieri

Explora 1 arriving into Liverpool UK photo credit Spacejunkie2 (More Flickr Images)

MSC Group today confirmed firm orders for two hydrogen-powered vessels for its luxury travel brand Explora Journeys with Fincantieri and pledged to continue its push towards a net zero-carbon emissions target by 2050 by investigating additional new and advanced environmental technologies for the luxury ships, according to a press release.

The deal completes a total investment of €3.5 billion in six luxury ships for Explora Journeys. The contracts are subject to access to financing as per industry practice.

The company said that Explora V and Explora VI will have new state-of-the-art energy efficiency measures and will also be capable of using alternative fuels such as bio and synthetic gas and methanol and the Cruise Division will work in the future with Fincantieri to equip the ships with future technologies including carbon capture and more advanced waste management systems.

The two confirmed additions to Explora Journeys’ fleet will be delivered in 2027 and 2028.

Pierfrancesco Vago, Executive Chairman – Cruise Division, MSC Group, said: “With Explora Journeys we have created a luxury brand that has been successful at redefining luxury at sea. We are seeing continued growth in the luxury segment and the investment in these two new ships shows our commitment to continue to grow within this sector as well as to invest in ships of the future. Together with Fincantieri, we will study the newest technology that the world has to offer and continue with our commitment to introduce these technologies to drive efficiencies across the whole spectrum of ship performance. And of course, we will continue to deliver the very best luxury travel experience, immersing our guests in the ocean state of mind with a sustainable soul.”

Pierroberto Folgiero, Chief Executive Officer, Fincantieri, added: “This new contract with MSC is a sign of the growing vitality of the cruise sector, in line with what we had predicted. In strategic terms, our future will depend on our ability to lead the evolution of the sector towards all energy and digital transition technologies with the entrepreneurship required to validate, industrialise and commercialise new solutions. The relevance of the partnership with MSC in this sense is a great strategic stimulus towards the future in line with the technological development goals set out in our new business plan. We are therefore particularly proud that the Explora project will mark the acceleration of this new phase, which with the fifth and sixth ships, will reach the highest level of advancement, making Fincantieri’s vision of the ship of the future ever more concrete.”

The two new ships will pursue the use of liquid hydrogen with fuel cells for their hotel operations while docked in ports to eliminate carbon emissions with the vessels’ engines switched off.

The ships will also feature a new generation of LNG engines that will further tackle the issue of methane slip with the use of containment systems.

Hurtigruten Receives Best ESG Ranking of a Cruise Company

Hurtigruten Group has received an industry-leading ESG Risk Rating of 19.7 (Low) following an assessment by Morningstar Sustainalytics, an ESG research, ratings and data firm, according to a statement.

With ratings categorized across five risk levels, Hurtigruten Group is the only cruise company to be awarded a Low ESG Risk Rating and ranks fourth (out of 127 companies) in the “Travel, Lodging and Amusement” subindustry category.

“This rating is a result of our company-wide focus on emissions, nature, community and people,” said Daniel Skjeldam, CEO of Hurtigruten Group. “We have made significant strides over the past year, investing 66 million euros in emissions reduction. Our pioneering Green Bond, issued in 2022, has enabled us to finance ongoing environmental upgrades, including converting our fifth battery hybrid-powered ship. Simultaneously, we strengthened governance with executive compensation linked to ESG targets, a new whistleblower policy and improved supply chain control, emphasizing local procurement.”

In its latest ESG rating report, Morningstar Sustainalytics stated: “The company [Hurtigruten Group] is at low risk of experiencing material financial impacts from ESG factors, due to its medium exposure and strong management of material ESG issues. The company is not publicly held, which reduces its corporate governance risk compared to its peers. Although the company has a moderate level of controversies, its favourable risk assessment is primarily due to its above-average policies and programmes.”

“This rating is a quantitative method to assess our ESG efforts and a valuable tool to scrutinize how we execute on our ESG strategy through programmes and policies across the entire business,” explained Skjeldam. Hurtigruten Group – consisting of Hurtigruten Norway, Hurtigruten Expeditions, and Hurtigruten Svalbard – seeks to change the industry’s approach to sustainability. Hurtigruten Group was the first cruise line to ban heavy fuel oil (2009) and single-use plastics (2018). In 2019, Hurtigruten Expeditions added the world’s first battery hybrid-powered cruise ship and has since added two.

In 2022, Hurtigruten Norway converted its first battery hybrid-powered ship, with one more joining the fleet in 2023 and a third planned for 2024. The conversions are part of a 100-million-euro green upgrade that will reduce CO2 and NOx emissions by 25% and 80%, concurrently. Moreover, this June, Hurtigruten Norway’s first-of-kind Sea Zero initiative revealed early concept plans for the world’s most energy-efficient cruise ship.

“In addition, our Svalbard operations have made considerable progress in reducing their impact, deploying two electric tour boats and eight electric snowmobiles. We are working towards becoming cleaner, greener, and quieter,” added Skjeldam.

Amsterdam bans cruise ships to limit visitors and curb pollution

Costa Medditrannia berthed in Amsterdam photo credit Spacejunkie2 (Flickr)

Amsterdam’s council has banned cruise ships from the city centre as the Dutch capital tries to limit visitor numbers and curb pollution.

Politicians said the vessels were not in line with the city’s sustainable ambitions.

It means the central cruise terminal on the River IJ near Amsterdam’s main train station will close.

It is the latest measure to clamp down on mass tourism in the city.

Cruise ships have become a symbol of the problem, with more than 100 mooring in the capital every year.

The council has been trying to scrub up the city, banning cannabis smoking on the streets of the red-light district.

In March the city launched an online campaign urging young British men considering holding their bachelor parties in Amsterdam to stay away.

Amsterdam has become a victim of its own popularity, attracting 20 million annual visitors – some drawn by its party city reputation.

“Cruise ships in the centre of the city don’t fit in with Amsterdam’s task of cutting the number of tourists,” said Ilana Rooderkerk of the liberal D66 party, which runs the city along with the Labour party and environmentalists.

Ms Rooderkerk recently compared cruise tourists to a type of “plague of locusts” descending all at once on the city.

Iconic buildings in Amsterdam are great for Photographers credit Spacejunkie2 (Flickr)Other Amsterdam officials have baulked at that kind of language. But Mayor Femke Halsema complained last year that cruise tourists were let loose for a couple of hours, ate at international chains and had no time to visit a museum, consuming the city but doing little for it.

The other key reason for removing cruise ships is to lower air pollution levels in Amsterdam. A 2021 study of one big cruise ship found that it had produced the same levels of nitrogen oxides (NOx) in one day as 30,000 trucks.

Other mooring sites away from the city centre have been under consideration for some time but no decision has yet been taken.

In a separate development, Amsterdam has announced plans to beef up night-time culture for young people.

The city has outlined its aim to find nightclub locations such as disused tunnels and garages to develop the talent of “creative young people who want to organise something at night”.