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Challenges-Regulations and Green Steel in Ship Recycling: Lloyd’s Register

Challenges-Regulations and Green Steel in Ship Recycling: Lloyd's Register

Challenges-Regulations and Green Steel in Ship Recycling: Lloyd’s Register

A recent event hosted by Lloyd’s Register on April 10th in Bhavnagar, India, brought together leading ship recyclers and industry professionals for a discussion on critical issues facing the industry. Here’s a breakdown of the key takeaways:

Challenges and Upcoming Surge in Ship Recycling:

  • The shipping industry faces an influx of older ships reaching their end-of-life due to a rise in new builds and technological advancements.
  • Data from Clarkson’s Research suggests that a staggering 15,000 ships are slated for scrapping in the coming years.
  • Industry experts predict a surge in ship recycling demand starting from mid-2025, barring unforeseen geopolitical disruptions. This surge might be driven by the implementation of new technologies that render existing ships obsolete.

Regulatory Fog and the Role of Classification Societies:

  • A major concern raised by shipowners is the perceived “regulatory fog” surrounding ship recycling, particularly in Alang, South East Asia. They find the regulations to be complex, overlapping, and unclear.
  • Industry experts believe Classification Societies have a responsibility to clarify these regulations and remove the confusion for shipowners.
  • The event highlighted the need for more discussions between classification societies and ship owners to improve transparency around ship recycling regulations.

Green Initiatives and Emissions Reduction:

  • The event shed light on some positive developments within the ship recycling industry.
  • Notably, some recycling yards are proactively tracking and reporting their emissions.
  • The discussion also focused on Green Steel, a more environmentally friendly alternative to traditional steel production.
  • Re-rolling steel plates in India was presented as a method with a significantly lower carbon footprint compared to melting steel scrap in an Electric Arc Furnace (EAF). Re-rolling generates 0.2 to 0.3 tons of CO2 per ton of steel, compared to 0.65 tons for EAF-melted steel.
  • The event emphasized the importance of steel recycling as a readily available tool to fight climate change. Additionally, utilizing renewable energy sources in Indian re-rolling mills could potentially lead to the production of “green steel” with an even lower carbon footprint than “net-zero steel.”
  • The closing remarks encouraged a commitment from clients to consider and accept the use of net-zero steel.

Some ship recycling yards are already taking steps to monitor their emissions and prepare reports on their environmental impact. Additionally, discussions around “Green Steel” highlighted the environmental benefits of recycling steel compared to traditional methods. For instance, re-rolling steel plates in India emits significantly less CO2 compared to melting steel in Electric Arc Furnaces (EAFs). This underscores the importance of recycling steel as a means to combat climate change.


The Lloyds Register event served as a valuable platform for discussing the challenges and opportunities within the ship recycling industry. Collaboration between industry stakeholders improved regulatory clarity, and a focus on green initiatives are crucial for ensuring a sustainable future for this sector.

The event concluded with a plea for commitments from clients to embrace and consume “Net Zero Steel,” emphasizing the importance of sustainable practices in the industry.

In conclusion, the event hosted by Lloyds Register provided valuable insights into the challenges and opportunities in ship recycling. With concerted efforts from all stakeholders, including Classification Societies, ship owners, and recyclers, the industry can navigate regulatory complexities and embrace sustainable practices for a better future.

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