Efficiency first in Odfjell’s decarbonization strategy

Internal News | 02.09.2025

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In an interview with Investment Reports for Newsweek, Chief Sustainability Officer Øistein Jensen outlined the challenges and opportunities facing the shipping industry as it works toward a low-carbon future.

“Our strategy is to retrofit where possible, improve efficiency wherever we can, and stay open to future fuels. Efficiency is always our top priority,” Jensen said. 

He pointed to the industry’s current reality: “The main challenge is that there are no commercially viable alternatives to combustion engines, especially for deep-sea shipping like Odfjell’s tanker operations. Crossing the Atlantic, for example, leaves no good substitute for fossil fuels.” While sustainable biofuels are available, they remain costly—about twice the price of heavy fuel oil. 

This is why global rules are essential. “Because shipping is a global industry, regulation must also be global. Our segment isn’t consumer-facing, so there’s less direct customer pressure for green solutions. Still, we want to send a clear message: if low-carbon fuels are available, we will buy them,” Jensen emphasized. 

Looking ahead, he underlined the importance of exploring future fuels with a pragmatic approach. “Green ammonia is technically feasible, but producing it would consume about half of the world’s current renewable energy capacity. From an efficiency standpoint, around 80% of the energy is lost in converting wind to green ammonia and burning it in an engine.” 

Instead, Odfjell is investing in technologies that deliver measurable impact today. “One of our most promising technologies is suction sails that use a fan to generate lift, similar to an aircraft wing. Since they harness wind directly, there’s virtually no conversion loss. Even in low wind, we’ve documented efficiency gains of at least 20%.” 

On a recent transatlantic voyage, Odfjell paired suction sails with 100% sustainable biofuel, achieving “a near net-zero journey–proof that net-zero shipping is technically achievable today.” 

Read the full interview with Øistein Jensen in Investment Reports / Newsweek here

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