Odfjell Group is one of the world’s leading service providers within the chemical tanker and terminals industry, transporting chemicals and other speciality bulk liquids. Based in Bergen, Norway and founded in 1914, the Odfjell fleet comprises around 70 ships.
How has Norway maintained its position as one of the world's largest ship-owning nations despite its relatively small population and isolated geography?
Norway’s close proximity to the sea plays a significant role. Around 70-80% of the population lives close to the shore, and our maritime heritage dates back to the Viking era, if not earlier. Norwegians have long depended on the sea for transportation and trade.
The foundation for modern shipping dates back to the 18th century when Norway was a major exporter of timber and needed ships to transport logs globally. The southern part of Norway developed a large shipping industry early on and later transitioned successfully from sail to steam. This legacy has carried forward, keeping Norway a leading maritime nation. I joined the Navy when I was 17 or 18 and spent 13 years there before transitioning to merchant shipping. It’s been part of my life for a long time.
For those unfamiliar with Odfjell Group, could you outline the type of cargo you specialize in and your core markets?
Odfjell originally transported timber but shifted focus in the 1960s when we saw an opportunity in liquid chemical transportation. At the time, chemicals were transported in drums, which was inefficient. Our founder, Dan Odfjell Sr., pioneered parcel tankers—ships with fully segregated tanks—allowing multiple chemicals to be transported safely and efficiently.
Today, we are one of the top three transporters of liquid chemicals, operating around 70 vessels, most with stainless steel tanks. This material improves durability and makes cleaning between shipments easier. We handle over 600 chemicals, each with unique storage and transport requirements, such as temperature control or oxygen shielding. Our expertise is why we have contracts with nearly all major liquid chemical producers, covering more than 60% of our cargo.
Shipping is essential for global trade but contributes to 3% of global greenhouse emissions. Can you tell us about the recent transatlantic voyage from Antwerp to Houston with suction sails?
We thoroughly evaluated various sail types—rotor sails, wing sails, kites—and determined that suction sails were the most effective for our trade. One challenge was integrating them onto our vessels, which have up to 52 tanks and extensive piping. Finding suitable foundations and strengthening the deck were crucial steps.
We partnered with a Spanish manufacturer, Bound4Blue, which completed the foundations in China last year, and will install the sails in Europe in the first quarter of 2025. We anticipate reducing fuel consumption by at least 8%, though this depends on wind conditions.
A typical ship uses around 20 tons of fuel daily. An 8% reduction means saving about 1.5 tons per day or over 200 tons per year, excluding time spent in port. If scaled across the industry, such innovations could make a meaningful difference in fuel consumption and emissions. Our route optimization efforts, which usually minimize wind exposure, now require adjustments to maximize sail efficiency.
Balancing innovation with financial risks can be challenging. How do you manage this in a highly competitive market as you pilot and test sustainability initiatives?
Our motivation is clear: we want to reduce our environmental impact for future generations. However, we also have shareholders expecting returns, and customers still demand cost-effective transport.
We estimate a 7- to 10-year payback period for the sails, which isn’t the best investment from a purely financial perspective. However, environmental regulations are tightening, and carbon taxes will likely make sustainability investments more economically viable. We can’t take excessive financial risks, but we recognize our responsibility to contribute to a cleaner industry.
What lessons have you taken forward from past sustainability initiatives that didn’t go as planned?
Fossil fuel has been dominant because it’s cheap, available worldwide, and compatible with all engines—but it’s highly polluting. We’ve explored various alternatives like batteries, hydrogen, ammonia, biofuels, and carbon capture. However, no single solution will replace fossil fuels universally.
Each alternative has trade-offs. Hydrogen and batteries work well for short distances but aren’t feasible for deep-sea shipping. Ammonia is promising but toxic and energy-intensive to produce. Biofuels are currently our best bet as they can be used on existing ships without modifications, and production is increasing. Reducing fuel consumption now will also help when we transition to green fuels, as they will be more expensive and scarce.
Looking to the next generation of shipping, do you see more potential in modifying existing ships or building new vessels with sustainability design in mind?
New builds come with challenges—our ships have 30-year lifespans, so any technology we adopt today must still be relevant in 2055. Uncertainty in future fuel options makes us cautious about large-scale new investments. Instead, we focus on upgrading existing ships.
For example, we partnered with scientists in Norway and Denmark to develop optimized propellers with seagull-wing tips, reducing fuel consumption by over 20% on 19 vessels. We’re also exploring ship design improvements, like lighter hulls and energy-saving features that would be impractical for retrofitting existing ships. So far, our range of energy-efficiency initiatives has reduced the intensity of carbon emissions of our owned fleet by 53% compared to the 2008 baseline. Future vessels could be designed more like sailing ships to maximize wind propulsion.
