{"id":9587,"date":"2016-11-04T16:53:53","date_gmt":"2016-11-04T20:53:53","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/seas-ing-the-opportunity-from-kite-surfing-to-kite-sailing-with-skysails\/"},"modified":"2016-11-04T16:53:53","modified_gmt":"2016-11-04T20:53:53","slug":"lets-go-fly-a-kite-skysails-and-climate-change","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/lets-go-fly-a-kite-skysails-and-climate-change\/","title":{"rendered":"Let\u2019s Go Fly a Kite \u2013 SkySails and Climate Change"},"content":{"rendered":"

Dire Straits \u2013 Shipping and Climate Change<\/strong><\/p>\n

Shipping brings us 90% of everything we buy and consume, from our clothes to our TVs to our cars. [1] And yet recognition of the impact of shipping on the environment is shockingly low. Shipping is one of the fastest growing sources of transport greenhouse gas (GHG) emissions, accounting for approximately 3% of annual global CO2<\/sub> emissions, with\u00a0a projected increase of 50-250% in the period up to 2050. By comparison, the much maligned Aviation industry only accounts for 2% of global CO2<\/sub> emissions [2].<\/p>\n

And yet because shipping is such a fundamental part of global trade, there is little appetite by governments and regulators to introduce programs to reduce emissions. In fact, the head of the International Maritime Organization (IMO) argued at the climate talks in Paris last year that a cap on emissions for shipping would damage the world economy. [3]<\/p>\n

So the question arises \u2013 is there an opportunity to reduce shipping emissions without impacting growth?<\/p>\n

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Seas-ing the opportunity \u2013 from kite-surfing to \u201ckite-sailing\u201d with SkySails<\/strong><\/p>\n

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One company that thinks so is Skysails GmbH from Hamburg. Chosen by the World Economic Forum as a 2008 Technology Pioneer [4], their innovative solution uses automated kites to tow large container ships. Think kite-surfing, but on a highly advanced scale.<\/p>\n

\"fuel-savings\"<\/a>
Illustrative comparison of fuel consumption with\/without SkySails aboard MV \u201cTheseus\u201d [10]<\/em><\/figcaption><\/figure>Skysails has equipped five ships so far, enabling them to increase speed, cut fuel consumption, and significantly reduce emissions. \u00a0\u201cWind is the cheapest, most powerful, and greenest source of energy on the ocean,\u201d says founder Stephen Wrage, “and\u00a0kites are by far the most efficient system of generating that energy.\u201d [5]<\/p>\n

The Skysails propulsion system consists of three main components: a foil towing kite, a launch and recovery system, and an electronic control system for automated operation. It can be installed on new builds and existing vessels. \u00a0The 150-1000 m2<\/sup> kites (1,615-10,764 sq. ft.) aren\u2019t cheap \u2013 they cost anywhere from $450,000 to $3 million. However the company says they pay for themselves within three to five years through reduced fuel consumption and emissions. [6]<\/p>\n

Speaking of which, how effective are they? Skysails say one kWh of\u00a0SkySails power costs $0.06, or half as much as one kWh from the main engine. Their first partnership with Beluga Shipping produced an average fuel savings of 10-15%. The IMO estimates that SkySails technology can eliminate\u00a0up to 100 million tons of\u00a0carbon emissions every year \u2013 equivalent to 11% of Germany\u2019s CO2<\/sub> emissions. [7]<\/p>\n

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A lack\u00a0of sails \u2013 structural\u00a0issues<\/strong><\/p>\n

So why has SkySails not attracted interest from ship companies? According to Henning Kuehl, head of business development at SkySails, \u201cThere\u2019s a structural problem slowing down the process: ship owners (who have to make the investment) often don\u2019t pay for the fuel \u2013 that\u2019s the charterer\u2019s duty. The charterer on the other side doesn\u2019t charter the ship for long enough a period to make low-carbon technologies pay back.\u201d [8] Combine this with low fuel prices and little political incentive (there is currently no regulation limiting shipping carbon emissions), SkySails is finding it difficult to get lift-off.<\/p>\n

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Crowd on more sail \u2013 additional steps for the existing operating model<\/strong><\/p>\n

SkySails\u2019 operating model is based on two principles \u2013 reducing fuel cost & improving a company\u2019s sustainability image. SkySails needs to do more in these areas if it is to have any chance of developing a global business:<\/p>\n