Sustainable Approach to Offshore Recycling: The Role of Digital Technologies in ESG Compliance and True Impact Carbon Emissions Reduction
Authors: Suboyin Abhijith , Eldred Morgan , Sonne-Schmidt Carsten , Thatcher Jimmy , Rehman Abdul , Anjum Hassaan , Thomsen Jens , Andersen Ole , Udsen Ole 
Published: February 2024

The objective of the industrial case study is to address the challenge of efficiently managing end-of-life offshore assets while meeting established ESG targets. The offshore industry uses substantial amounts of steel, and current practices for handling these assets are often not transparent, leading to criticism for unsustainable and non-compliant scrapping procedures. The presented approach combines engineering and technical data from offshore assets with decommissioning best practices and digital and Al technologies to ensure a transparent and ESG compliant approach to scrapping. This will provide auditable evidence of ESG compliance and is expected to address the challenge of managing end of-life offshore assets while meeting ESG targets.

The use of Life Cycle Assessment (LCA) requires asset owners to demonstrate compliance with net zero targets, which is mainly impacted by the main material groups, such as steel. Recycled steel maintains its strength properties and if produced using electric arc furnaces, emissions can be minimized. The implemented solution offers a transparent, reliable, and ESG-optimized approach for scrapping assets. Each step in the process, from cutting to transportation to the steel furnace, can be tracked and audited, ensuring the end product can be classified as green steel. This green steel can be used by asset owners to construct new vessels or facilities or can be sold to other users, creating a true circular economy where a significant amount of embodied carbon can be recycled and made net zero.

The implementation of digital technologies in the scrapping and recycling process led to a significant increase in transparency and traceability of recycled materials compared to traditional methods. Overall, emissions data indicates a 30% reduction in total emissions from scrapping and recycling process, due to the incorporation of proposed methodology. The pricing competitiveness of the recycling process increased by 20% due to enhanced efficiency and the reduction of waste. By integrating recycled steel into the process, resource consumption was cut by 25%, and emissions were reduced by an additional 15%. The use of recycled stainless-steel scrap resulted in a CO2 saving of 2.3 tons per ton of scrap, which equates to a decrease in CO2 emissions of about 52% compared to the use of non-recycled steel. In terms of handling, transportation, and operations, emissions were reduced by 20%, 30%, and 25% respectively, due to the optimization of processes using digital technologies. These reductions were confirmed with verified emission factors and illustrated in depth within the study.

The solution can be expanded to cover a variety of materials and assets, both offshore and onshore, to give asset owners peace of mind regarding their ESG responsibilities in the scrapping and construction value chain. This will provide a smooth, transparent, and efficient turnkey solution.