The Estonian government and companies are establishing the Estonian Marine Greentech & Retrofit Hub to empower both local and international maritime companies to retrofit their ships to meet International Maritime Organization regulations toward net zero shipping. Additionally, the government supports the greening of ships with a €25 million budget.
To comply with upcoming regulations, ships will require facilities to install hydrogen or electric solutions, carbon capture systems, and the latest software technologies. The Estonian government is allocating €25 million to support the ship retrofit center, which will provide partial reimbursement for investments made in Estonia. This means that international maritime companies utilizing retrofit services in Estonia can receive 10-30% of the overall project cost as financial support from the Estonian government.
“Everything can be done in one place: project planning, selection of green technology, installation, and testing,” said Ragmar Saksing, General Manager of the Estonian Maritime Cluster. “Even scientists and students participate in the process. This approach simplifies and accelerates services for foreign clients.”
The nationwide joint initiative will boost the export of services, industrial production, and innovation related to ship retrofitting in Estonia, increasing job opportunities. “We expect the volume of research and innovation collaboration with universities to rise, resulting in the growth of deep technology and start-up companies in this sector,” he stated.
Estonian maritime companies already have offices in Italy, France, Norway, Germany and the Netherlands. Sasking said these countries are seeking reliable locations to install new technologies on their ships. “If Estonia can provide high quality, a clear timeline and offer competitive pricing— which is entirely achievable with the state support — then it is logical that we would become an attractive option,” he said.
Saksing said Estonia offers speed and flexibility while large shipyards in Germany or the Netherlands may have several months of backlog. Estonia also has strength in developing digital technologies including near-zero-emission technologies, hydrogen technologies, batteries and digital control systems. For example, carbon capture on ships can capture emissions before they are released. Energy management software helps ships optimize their fuel consumption and energy usage in real-time. Estonia is developing and implementing shore power systems that enable ships to turn off their engines and operate on electricity while in port. Additionally, electric and hydrogen drives for smaller workboats are being developed.
Estonian companies LTH Baas, Insta Globe Engineering, SRC, MindChip, Cybernetica, Avatech, Shore Link, and Baltic Workboats are some of the companies offering green solutions.
“We have companies with extensive global experience in building and retrofitting ships, successful product development partners in research institutions, software companies with unique expertise in the maritime sector, and ports that have already joined green corridors and are leading the adoption of green fuels in the region,” Saksing said.
