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Danaos wins the “green” bet

"Zero-carbon" by 2050

New improved environmental performances were recorded in 2023 by Danaos Corporation, meeting the targets much earlier than the set timetables.

The figures cited by the shipping company in its ESG report show that the Operating Energy Efficiency Index (EEOI) fell to 14.05 points last year from 15.7 points in 2022.

EEOI (gr CO2 / Tonne-mile) is the ratio of annual total CO2 emissions per transport project, as defined by the International Maritime Organization (IMO).

“The implementation of an extensive retrofit plan during 2023, with the aim of enhancing the energy efficiency of the ships, combined with speed reduction initiatives led to a noticeable reduction in EEOI,” the Danaos report emphasized.
Based on these data, last year the shipping company managed to reduce CO2 emissions by 48.5%, compared to 2008.
Danaos has consistently achieved in recent years the IMO’s -initial- goal of reducing the carbon footprint (CO2 emissions per transport project) of international shipping by 40% until 2030.

At the same time, the annual efficiency ratio (AER) was set at 7.18 units in 2023 from 8.46 units in 2022. AER (gr CO2 / DWT-mil) is calculated based on a ship’s carbon emissions per exact tonnage – distance, taking into account parameters such as fuel consumption, the distance traveled by the ship and its design.

Another important element that emerges from the report of the company listed on the US stock exchange is that 81% of the fleet is compatible with the Carbon Intensity Index (CII) of the IMO, as it is evaluated with the permitted grades A, B, C.

“Zero-carbon” by 2050

In 2022, Danaos published a Low Carbon Transition Plan (LCTP). Based on this, it aims to reduce its EEOI by 50% until 2030, compared to 2008 levels, with the ultimate goal of achieving carbon neutrality by 2050. The listed company’s decarbonization plan, as defined under the LCTP, envisages the acquisition of environmentally friendly (eco) ships from the secondary market and the construction of new eco tonnage, with the possibility of utilizing “green” fuels in the future.

Danaos is already implementing a shipbuilding program for 14 containerships, with scheduled deliveries from this year until 2027. All will be “methanolready”, i.e., after retrofitting, they will be able to burn methanol, while two will have “ammonia” specifications -ready’ for ammonia use.
At the same time, the listed company has committed to implement systems that will allow its ships to receive power from land (Alternative Marine Power – AMP).

The goal is for 25% of the fleet to be equipped with them by 2025 compared to 22% which is the corresponding percentage today.