Wärtsilä is a Finnish company that designs, manufactures, and services a range of lifecycle solutions and technologies for the marine and energy markets to help customers transition to renewable energy and decarbonize operations.
Wärtsilä sits at the heart of two of the world’s most emissions-intensive sectors: shipping and energy. As decarbonization pressures mount, what do you see as Wärtsilä’s responsibility—and opportunity—in shaping a more sustainable future?
Today, sixty percent of our business is related to marine, and forty percent is related to energy. If you look at these two industries combined, they are estimated to represent around 35% of global CO2 emissions. Maritime is around 2 to 3%, and the rest, roughly a third, is energy. Being a major player in both, we have a great opportunity to make a difference. We shouldn’t be shy about it—we are part of the problem, but also part of the solution as we are investing heavily in the transition to a green future. The consensus among experts is that, unfortunately, we will miss the 1.5-degree Paris target. Decarbonization is accelerating, but it’s still too slow.
The good news is that much of the technology that is needed for decarbonized shipping and a 100% renewable energy future already exists today: from low- and zero-carbon fuels, to emission-abatement solutions such as carbon capture, to digital and AI-driven tools that minimize fuel use. Our role at Wärtsilä is to support our customers on this journey in a way that is both environmentally sustainable and financially viable.
With vessels built today expected to operate for decades, how is Wärtsilä helping shipowners design and retrofit ships that can stay competitive and compliant through a fast-moving energy transition?
Last year was a record year—about 2,000 large new vessels were built. New ships will operate for around 30 years and must last through the decarbonization transition, so they need fuel flexibility and efficient systems to handle more expensive fuels. Retrofits are also key. You can upgrade engines for fuel efficiency or emission reduction.
We’re already selling technology that supports multiple fuels—even if the fuel isn’t yet available—because flexibility is a key pillar of our strategy. That way, customers can start with one fuel and switch to a more sustainable one later. Another major point is cost. These new fuels are estimated to be 2–4 times more expensive than fossil fuels. That’s why we need carbon pricing mechanisms to level the playing field.
As decarbonization accelerates across both shipping and energy, which technologies are Wärtsilä prioritizing to make the biggest near- and long-term impact?
One major area is new fuels. Fossil carbon-based fuels like diesel and methane will be with us for many years. A ship has a 25–30-year lifetime, so it takes time for new technologies to scale up. The next group is carbon-neutral fuels—biofuels and green methanol. These are carbon-neutral because you're recycling carbon atoms. We're ready for those fuels and are already selling technology compatible with them. Then you have the third category—zero-carbon fuels. These contain no carbon atoms, like ammonia and hydrogen. Last year, we sold our first ammonia engine and launched our 100% hydrogen power plant concept. We are ready for zero-carbon fuels, but availability is a big issue.
We’re also developing hybrid solutions—batteries combined with combustion engines. We’re market leaders in these hybrid systems. We commercially launched our marine carbon capture system this year. We provide equipment to remove CO2 from vessel exhaust, but the rest of the ecosystem needs to evolve, transporting the CO2 and either sequestering it or using it to make products like synthetic fuels. We use our engines and battery systems to build power plants that provide balancing power, which ramps up in an instant when renewables dip. This makes it possible to scale up renewable energy while keeping the system reliable and stable.
With the marine sector guided by global regulations and the energy sector shaped by national policies, how does Wärtsilä navigate these differing frameworks?
The marine sector is regulated globally by the IMO. It’s unique in that regard and has a strong agenda which is driving the decarbonization of the industry. By contrast, the energy sector lacks a global regulator. Each country sets its own rules. Some are very advanced, others are more conservative.
Long-term, the big solution is more renewables—wind and solar. They're good for the environment and the most affordable form of energy. Renewables are intermittent, though—the sun doesn’t always shine, and the wind doesn’t always blow. That’s where our balancing power comes in. Nuclear may play a role, but it’s expensive and has safety concerns.
Given the vastly different energy policies and market conditions across regions, how does Wärtsilä adapt its strategy to accelerate renewable adoption?
We see a very varied picture depending on where you are in the world. The UK has strong potential for wind energy; it’s a very active market where we already supply balancing power—both battery and thermal. Texas is currently one of our hottest markets. Forty percent of its installed power is renewable, and it has learned the importance of balancing power. Australia is also progressing. Europe is moving forward, slowly but surely. China is the world’s largest renewable investor and expanding aggressively, even though it still invests in coal and remains the biggest emitter.
Nordic countries also have very ambitious environmental agendas, but face permitting challenges. In the U.S., emissions per capita are among the highest, but the demand for affordable energy is driving massive renewables growth.
How is Wärtsilä advancing region-specific technologies like ethanol in Brazil and ammonia in Norway?
Brazil’s ethanol industry is mature, with a lot of transportation, especially cars, running on ethanol fuel. Sugarcane is a very efficient ethanol crop, which isn’t grown in the Amazon, and Brazil has a strong sustainability agenda in both energy and marine. So, we’ve partnered with stakeholders there to develop the world’s first ethanol engine for power plants, and are running tests with our engines in Brazil.
Last year, we launched and sold our first ammonia engine to a Norwegian customer, Eidesvik. We’ve also launched the world’s first full-scale onboard carbon capture system. It captures 70% of a ship’s emissions at a reasonable energy penalty. With 100,000 large vessels in operation globally, retrofitting is a huge opportunity.
The International Maritime Organization is moving toward a global carbon pricing framework this year. If passed, how could it reshape the economics of shipping?
The IMO introduced a proposal in 2023 that includes carbon pricing for the first time. In April this year, the IMO agreed on a draft of the regulation, with a final decision due in October. This means a global carbon price could come into force in 2027. That’s a major shift. Studies suggest that, if adopted, operating costs for heavy fuel oil could double by 2035. In shipping terms, that’s soon.
These are unprecedented events. If adopted, owners will have to meet carbon intensity targets or pay fees. Green technologies may qualify for financial incentives. Countries like China, India, Brazil, and those in Europe supported the proposal. There are currently no global carbon pricing mechanisms. If this measure passes, it’ll be the first time any industry has introduced a worldwide carbon pricing framework.
Amid rising tariffs, inflation, and geopolitical tension, how is Wärtsilä shaping its U.S. energy strategy to stay resilient in the short term while preparing for long-term growth in renewables?
Most ships are built, owned and operated outside the U.S. Preliminary analysis shows that tariffs on Chinese-built vessels have a limited impact in most commercial marine segments. The U.S. accounts for about 15% of global shipping, so trade impacts are relatively moderate. On the energy side, inflation and tariffs are pushing up costs, but energy remains a very strategic topic on the U.S. agenda and energy generation is expanding. Affordable energy will become even more critical. Geopolitical instability brings more focus to national and regional sovereignty, especially with regard to energy. It all depends on how geopolitics and tariffs evolve.
If uncertainty persists, businesses will hesitate; that’s a real concern right now. But if you zoom out to 10–20 years, the trend is very clear. Step by step, more renewables are coming online. Collaboration across the value chain is essential. We can bring the technology, but fuels must be available, ship architecture must evolve, and energy systems must grow. We can’t do it alone. It’s about sending a signal to the ecosystem to help drive investment and cooperation.
