Pictured here is a computer rendition of a new container ship concept introduced by DNV. It transports more cargo using less fuel, reducing environmental impact.

 

Though Norway's Det Norsk Veritas is widely known for being among the world's largest shipping classification societies, its areas of expertise are in reality much more diverse.

In addition to the traditional shipping classification services, it manages technical and environmental risks in such sectors as maritime, oil and gas, and energy while conducting business assurance services in a variety of industries.

In other words, it is a maker of business operations and performance standards.

A knowledge-centered company, it remains committed to a constant focus on research and development.

With 125 years of experience operating in China, the company has found a new niche by tapping into the country's booming green economy.

Innovative technologies featuring greener designs and better energy efficiency are the future trend, especially in the shipbuilding industry, said Joerg Beiler, vice-president of DNV and area chairman of the China region.

Enhanced energy efficiency could slash the shipping company's fuel costs, which have been on the rise in recent years.

Meanwhile, considerably reducing pollution of the water and air is also in line with the increasingly stringent environmental regulations in the local market, Beiler said.

Greener designs

One of the emerging models is vessels fuelled by liquefied natural gas, commonly known as LNG, Beiler said.

Compared with traditional vessels, which burn heavy fuel oil for propulsion, LNG-fuelled vessels could cut their emissions of CO2 by 15 percent to 25 percent while reducing nitrogen oxides by 85 percent to 90 percent, according to research data.

This type of vessel also boasts promising market prospects.

According to a report by DNV named Shipping 2020, more than one in 10 vessels ordered between now and 2020 will be built using LNG propulsion. Some industry insiders say this is just as much of a challenge for Chinese shipyards as it is an opportunity. But Beiler said he is upbeat about the Chinese market.

"Chinese shipyards, especially big ones, are becoming more and more competitive," he said.

"They have made tremendous progress in developing competence and capability in recent years, which has been exemplified by the successful deliveries of complex vessel types."

Despite rapid development, Chinese shipbuilders still have a gap with their advanced rivals that must be overcome, Beiler said.

"It is in the sharing of safety and quality-management expertise and design experiences that DNV could cooperate with Chinese shipyards," he added.

Offshore bonanza

The same is also true in the sector of manufacturing offshore oil-drilling and exploration facilities, Beiler said.

Because the country is increasingly tapping its offshore resources, shipyards in China and across the world intend to use their manufacturing capacity to produce offshore equipment as a way to mitigate risks from the dismal shipping market.

China's demand for offshore facilities and oil will make it one of the largest markets in the world in the coming decades.

The country's current demand for offshore facilities accounts for 5 percent to 7 percent of the world's total, according to industry data.