Svitzer and Höegh Autoliners Partner to Deliver Carbon Insetting Solution in Australia

Denmark-headquartered towage and marine services provider Svitzer and Höegh Autoliners, a Norwegian provider of ocean transportation services in the roll-on, roll-off (RoRo) segment, have teamed up to deliver the former’s ‘first-ever’ carbon insetting solution in Australia.

As disclosed, Svitzer’s proprietary EcoTow solution is set to service the Höegh Aurora, considered to be the largest and most environmentally friendly car carrier in the world, on its calls to four ports ‘Down Under’. The 200-meter-long ship is believed to slash carbon emissions per car transported by 58% compared to the current industry standard.

According to Höegh Autoliners, Svitzer’s EcoTow has shown a near 100% reduction in carbon dioxide (CO2) emissions relating to the towage operations of Höegh Aurora’s port calls during its inaugural voyage to Australia, with the carrier having departed on December 30, 2024, after a visit to the country where it transported cars to Australia’s rail automotive market via ports in Fremantle, Melbourne, Port Kembla and Brisbane.

As described, with the carbon insetting solution, CO2 emissions from towage jobs are mass-balanced by carbon credits generated by Svitzer’s use of biofuel across its international towage operations. The neutralization effect is reportedly established by an external auditor and documented through certification and assurance reporting.

Representatives from Höegh Autoliners elaborated that this development was ‘crucial’ given the fact that towage is one of the largest carbon emitters in port operations in Australia. It is also said that it goes hand-in-hand with Svitzer’s own decarbonization strategy aiming at emission reductions via efforts such as the utilization of biofuel and battery-powered tugs.

“We are proud to have secured the first-ever, low-carbon towage service in Australia and it is only appropriate that our innovative, world-leading Aurora Class vessel delivers this first, providing the opportunity to further reduce the carbon footprint of our customers’ value chains,” commented Sebjørn Dahl, Chief Operations Officer at Höegh Autoliners.

Sharing her thoughts, Svitzer’s Managing Director for Australia, Videlina Georgieva, added: “Svitzer has ambitious decarbonization goals to have fully carbon neutral operations by 2040 and to reduce the carbon intensity of its tugboat fleet by 50 percent by 2030. We hope this initiative provides some further impetus to the policy landscape in Australia where there is a major, but largely unmet, opportunity to accelerate bioenergy and electrification solutions in maritime decarbonization.”

Carbon insetting—said to be applicable to all green fuels—has gained attention from numerous maritime industry players in recent times, including South Korea’s HMM, Japan’s Mitsui O.S.K. Lines, and Denmark’s Unifeeder. The ‘first’ insetting program in the world for zero emissions shipping was launched in April 2024 by Dutch shipping companies Future Proof Shipping (FPS) and Zero Emission Services (ZES), as well as 123Carbon, a platform for carbon insetting in multimodal transport.

Unlike offsetting, where an entity compensates for its emissions by funding external projects (such as reforestation or renewable energy initiatives elsewhere), carbon insetting is a strategy where companies invest in carbon reduction projects within their own supply chain or local operations, thus making a direct positive impact within the organization’s sphere of influence.

Höegh Autoliners explained that their uptake of the EcoTow solution could, therefore, help it progress even further with its decarbonization endeavors and possible net zero operations in the future.

As for Svitzer, the company contracted the construction of ‘the world’s first’ battery electric-methanol hybrid TRAnsverse tug in September 2024. The unit is anticipated to provide carbon-neutral towage for the majority of the tug’s operation.

What is more, the tug is projected to offer port authorities and shipping companies a towage solution that could support eco-friendly ‘Green Port’ and ‘Green Shipping Corridor’ ambitions.