Setting sail to decarbonise global shipping 

The inward investment from England and Japan into Scotland demonstrates confidence in the country and the firm's commitment to energy transition, innovation and engineering excellence. All these factors support SGS's ambitions to decarbonise global shipping.

The company’s FastRig technology, manufactured entirely in Scotland, is a retractable, recyclable, rigid wing sail, designed to be retrofitted to commercial vessels, for example bulkers and tankers. FastRig provides propulsion from wind to reduce fuel consumption, greenhouse gas emissions and operating costs. 

SGS was formed in 2014 by CEO, Diane Gilpin, to develop physical and technical solutions to reduce emissions on commercial shipping. The Department for Transport estimates that such green technologies have the potential to be installed on up to 40,000 vessels globally.

With Scotland committed to net zero energy transition by 2045, SGS considered different locations, including the Clyde and the Dumfries and Galloway region. Both offer a pioneering community of developers and digital technologies.

Currently, SGS is demonstrating its FastRig wingsail technology from Scotland’s Hunterston Port and Resource Centre (Hunterston PARC), collaborating with Clyde-based specialist engineering partners, Malin and Caley. Built in Scotland as an R&D project, the rig will be fitted in autumn 2024 to a fully commercial ship, the Pacific Grebe, to demonstrate the wingsails in a project funded by Innovate UK.

Diane believes that Scotland’s ambition to nurture innovation and help lead global energy transition represents significant inward investment opportunities for both the company and Scotland. 

Pending sea trials, the FastRig will be installed on a ship operating between British Columbia, Canada and Japan – and big demand from cargo owners is opening up viable commercial markets for the business.

The company has also received investment from Future Planet Capital, a dedicated climate fund and support from Drax, the UK’s leading renewable energy provider.

Diane adds: “As an international investor, the Japanese company, MOL, along with Drax will provide the first commercial platform to demonstrate the technology. MOL has committed to having a third of its 350 fleet of ships installed with wind technology by the year 2030 and has hugely ambitious climate goals.” 

SDI support towards global ambition

Diane invited Scottish Development International (SDI) to its test site in April 2023, when former Scotland First Minister, Humza Yousaf unveiled the FastRig for the first time. SDI Managing Director, Reuben Aitken joined the event and began early discussions to identify ways to help SGS explore wider global markets and inward investment opportunities.

Reuben Aitken, Managing Director, SDI.

He says: “This project milestone anchored years of development, planning and collaboration with Scottish maritime engineering partners such as Malin and Caley Ocean Systems. Smart Green Shipping demonstrated its technology that aims to reduce emissions for global shipping. The investment in Scotland is testament to the supportive environment we offer inward investors as we help businesses to innovate and scale to transform the economy.”

Smart Green Shipping is working with SDI to discover how best to map out its international growth plan along with other aspects of its business. This includes data analysis around fuel saving performance prediction and a weather routing optimisation tool, FastRoute, which enables FastRig enabled ships to operate at an optimum performance. The company has also received a £1.8 million grant from Scottish Enterprise towards research and development, and the firm's contribution to Scotland's net zero targets by 2045 will help to deliver a greener economy.

Filling the sails towards further success 

Scotland’s well-connected business support network and maritime infrastructure has enabled the company to think big in its growth targets. It plans to install 69 FastRigs by 2028 to match decarbonisation initiatives in line with the Intergovernmental Panel on Climate Change (IPCC), and to increase revenues to £57.5 million by 2026 and to £198.7 million by 2028.

SGS believes there will be further inward investment opportunities into Scotland from shipping companies that begin to recognise the nation’s proven maritime pedigree.  

Diane Gilpin sums up: “The global green shipping market is really hot at the moment and we’re racing to keep up with it. Scotland opened the opportunity for wind-assisted technology to help reduce global greenhouse gas emissions for shipping. I look forward to taking our technology to the world and making a real difference.”

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