Wärtsilä
Shaping the decarbonisation of Marine and Energy
Roadshow presentation
January 2023
1 | © Wärtsilä |
MARKET FUNDAMENTALS
MARINE will move with unprecedented speed towards decarbonisation
Policies & regulations
- IMO target
- Access to capital
- Cost of carbon
- Demand for green sea transport
Technology
- Carbon neutral and zero carbon fuels
- Carbon fuels for many years, still
- Abatement technologies
- Battery systems, hybrids & energy saving devices
- Fuel efficiency & flexibility
Connectivity & data
- Vessels as data pools
- Optimisation solutions
- Performance-basedagreements
- Cyber security
- Autonomous operations
ENERGY is moving towards a 100% renewables future
Policies & regulations
▪ EU: Carbon neutral by 2050
▪ USA: carbon free electricity production by 2035, net zero emissions by 2050
▪ China: Carbon neutral by 2060
Technology
▪ Wind and solar growing rapidly ▪ Intermittent sources requiring
balancing power
▪ Sustainable fuels for thermal balancing
▪ Digitalisation ▪ Cyber security
Growing ENERGY demand
▪ By 2050, electricity generation expected to grow by 3X, renewables by 8X 1)
▪ By 2030, balancing power market to grow by 10X 2)
▪ Gradual replacement of coal
▪ Power systems increasingly complex
1) IEA World Energy Outlook 2021 (Net Zero Emissions Scenario)
2) Bloomberg New Energy Outlook 2020, Wärtsilä estimates
2 | © Wärtsilä |
OUR VALUE CREATION POTENTIAL IS BASED ON TWO STRATEGIC THEMES
1
2
TRANSFORM
Decarbonisation creates new business opportunities
PERFORM
Leverage market recovery and growth
3© Wärtsilä
TRANSFORM
Decarbonisation creates new business opportunities
- Maritime is going through an unprecedented rate of change, which is accelerated by regulations and the demand for green transport.
- Also, the energy sector is undergoing a massive transformation as decarbonisation and renewables are fundamentally going to change the way energy is generated.
- We are set for performance and have significant value creation potential to drive this transformation as a technology leader.
1 Major test programme launched, 100% ammonia concept in 2023, 100% hydrogen in 2025
2 Extensive service network, positioned for growth both in transactional services and performance-based agreements
3 First Wärtsilä GridSolv Quantum
delivered in the USA
4 First real-life digital port call with Wärtsilä Navi-Port
5 Wärtsilä selected to supply world's largest bioLNG production plant
6 Hitting methanol milestone with first newbuild engine order
7 Ensuring optimal performance and minimal carbon footprint for world's most environmentally friendly ferry
4© Wärtsilä
PERFORM
We are ready to leverage market recovery and growth
#1-3 in global markets | "SET FOR 30" |
DECARBONISATION TARGETS: | |
FINANCIAL TARGETS: | ▪ carbon neutral in our own |
▪ 5% annual organic growth | operations by 2030 |
▪ 12% operating margin | ▪ a product portfolio ready for |
zero carbon fuels by 2030 |
Clear financial targets and strong commitment to realise them
Extensive service network, positioned for growth both in transactional services and performance-based agreements
Robust capital allocation | Notable opportunity | |
principles and active | in retrofits and | |
portfolio management | conversions | |
Focus on:
- High performing teams
- Performance excellence and robust execution
- Continuous improvement
- Cost structure - actions taken whenever and wherever necessary
5© Wärtsilä
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Wärtsilä Oyj published this content on 10 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2023 06:36:10 UTC.