By
Alex Smith |
Norwegian Cruise Line Holdings (NCLH) has launched a revamped climate action strategy, along with short- and near-term greenhouse gas (GHG) targets to help it achieve net zero by 2050.
The company is aiming to reduce GHG intensity by 10 per cent by 2026 and 25 per cent by 2030, compared to a 2019 baseline. These targets cover the company’s emissions from its fleet of ships, islands and facilities, as well as upstream fuel- and energy-related activities, including well-to tank emissions. The targets will therefore cover the full well-to-wate emissions impact of the company’s fuel consumption.
NCLH is also expanding the scope of its commitment to achieving net zero by 2050 to its entire GHG footprint, including its network of suppliers and partners across its value chain.
“We are proud to further refine and strengthen our climate action strategy and commitments including by setting milestone GHG intensity reduction targets which will guide us on our ambitious pursuit of net zero by 2050,” said Harry Sommer, president and CEO elect of NCLH. “Every aspect of our business from shoreside to shipboard is responsible for doing their part to design, deliver and demonstrate results for decarbonisation and our board of directors has reinforced this expectation by establishing shared accountability and tying incentives for our entire management team to this critical effort. We also recently took an important step forward on our pursuit of net zero by announcing the modification of two of our future Prima-class newbuilds to accommodate the use of green methanol in the future.”
The company’s revamped climate action strategy is centred around three pillars: efficiency, innovation and collaboration.
NCLH is focusing on optimising the efficiency of its existing fleet to reduce onboard power consumption and GHG emissions, while also generating fuel savings. It is making ongoing investments in systems and technologies such as HVAC system upgrades and waste heat recovery systems, as well as operational enhancements such as smart itinerary and voyage planning, and optimisation of hotel operations. To enable its team members and guests to operate its ships with optimal efficiency, the company is also building and investing in internal systems and processes that require data, education and accountability.
For long-term solutions and technologies, the company is innovating to support the ability to operate on green fuels. The company has successfully completed tests of biofuel blends on multiple ships since 2022, using a blend of approximately 30 per cent biofuel and 70 per cent marine gas oil. The company is also modifying the final two Prima-class ships to accommodate the use of green methanol as an alternative fuel source, which would cut carbon dioxide emissions by up to 95 per cent. The properties of green methanol would also enable NCLH to continue using conventional fuel storage and bunkering with fewer modifications compared to other emerging fuels. However, the production of green methanol is still in the early stages and will require continued investments to scale sufficiently for distribution and consumption globally.
To achieve the pathway to net-zero emissions, the company is exploring partnerships to champion efforts surrounding the development of green fuels, along with the global infrastructure to produce, store and distribute these fuels. In addition, NCLH continues to actively partner with key ports to accelerate the use of shore power technology, which allows cruise ships to connect to onshore electrical power grids to supply much of the power needed while docked. While the land-based infrastructure expansion is underway, the company is also equipping approximately 70 per cent of its fleet with the technology needed to plug in, aiming to have this completed by 2025.
“We are encouraged to see the significant progress and momentum across sectors to decarbonise, but fundamental challenges continue to exist for the cruise industry to fully decarbonise by 2050,” said Jessica John, vice president of environmental, social and government, investor relations and corporate communications at NCLH. “Rather than waiting for these challenges to dissolve, our strategy is about acting now to implement solutions for efficiency today, innovate for future solutions and collaborate with our stakeholders along the way. Underpinning this strategy is good governance and effective risk management as we work to advance our climate action efforts and build our company’s resilience.”