The Neptunus Project aims to be carbon neutral in 5 years by investing atleast 10% of its cost in Guyana. Can you elaborate on this project further?
Steel is the backbone of industry and a key component of the global economy, but it contributes to about 9% of global carbon emissions. Currently, 75% of the world’s steel is produced using the blast furnace method, which has significant environmental impacts. Addressing this issue sustainably is crucial in the climate change debate.
Neptunus Ship Builders and Recyclers Pvt Ltd offers an innovative solution based on reducing, reusing, and recycling. Ships, made of about 90% high-quality steel, present a unique opportunity. By dismantling end-of-life ships, we can recycle this steel for use in shipbuilding and other industries like automobiles, construction, and infrastructure.
The benefits of steel recycling are significant. Compared to traditional production, recycling uses 74% less energy, 90% less virgin materials, and 40% less water. It also generates 76% fewer water pollutants, 86% fewer air pollutants, and 97% less mining waste. This process not only reduces environmental harm but also ensures efficient use of natural resources.
Recycling steel also substantially lowers carbon emissions. For example, recycling one ton of steel reduces emissions by 1.5 tons. With a facility processing 5 million tons of steel, Neptunus can avoid about 7.5 million tons of carbon emissions annually, equivalent to preserving 1.5 million acres of the Amazon rainforest.
At Neptunus, we are committed to setting new sustainability standards. By converting end-of-life ships into high-quality recycled steel, we contribute to a more sustainable industrial ecosystem and combat climate change. We invite stakeholders and the global community to join us in this transformative journey towards a greener future.
What have been some of the most innovative solutions adopted by your company to align your services with the standards of sustainability?
At Neptunus Ship Builders and Recyclers Pvt Ltd, we are revolutionizing the shipbuilding and recycling industry with innovative and sustainable practices. Our operations focus on dismantling end-of-life ships to recover high-quality steel using the environmentally safe dry docking method, reflecting our commitment to ecological responsibility and resource efficiency.
Our holistic, carbon-negative approach leverages circular economy principles and closed-loop systems, transforming waste into valuable resources and utilizing renewable energy. This dedication to sustainability also enhances our operational efficiency.
We integrate state-of-the-art mechanisation &technology, including slipways, gantry cranes, plasma cutters, electrostatic precipitators, and dedicated waste treatment plants, ensuring high standards of environmental protection and efficiency.
Neptunus proudly invests in Guyana’s carbon credit system, highlighting our commitment to combating climate change and securing a sustainable future. This proactive role in global environmental stewardship underscores our dedication.
Our facility will be the largest of its kind, compliant with European Union regulations and the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. This positions Neptunus at the forefront of industry standards, setting new benchmarks for environmental compliance and sustainability.
Through our integrated approach, we are building a legacy of sustainability and innovation, paving the way for a greener, more responsible industry.
Neptunus Ship Builders &Recyclers are the leaders in terms of innovation in the maritime industry. How do you see the Guyanese maritime market evolve in the coming times?
Setting up a facility in Guyana offers numerous benefits for Neptunus Ship Builders and Recyclers Pvt Ltd. The strategic proximity to key markets in North America, South America, Europe, and Africa facilitates efficient logistics and reduces transportation costs, enhancing our service to these vital regions.
Guyana’s rapid GDP growth, stable government, and investment-friendly policies create an optimal environment for our project’s success. These favorable conditions, coupled with strong governmental support, ensure a secure operational base for Neptunus.
The global demand for steel is projected to reach 2.5 billion tons by 2030, up from 1.9 billion tons in 2023. Amid shrinking iron ore reserves, energy shortfalls, and an intensifying climate change discourse, meeting this demand sustainably is crucial. Neptunus is uniquely positioned to address this challenge with our state-of-the-art facility in Guyana.
Our facility not only meets global steel demand sustainably but also brings significant socio-economic benefits to Guyana. At full capacity, it will employ 22,000 individuals, approximately 12% of Guyana’s workforce, stimulating the local economy and improving livelihoods.
With a processing capacity of 5 million tons, our facility will be the largest steel recycling operation globally, adding an estimated 2.5 billion dollars annually to Guyana’s economy. This will enhance foreign exchange reserves and generate approximately 200 million dollars per year in tax revenues, bolstering the nation’s economic stability.
How does Guyana defence sector stand to benefit with the strengthening of the domestic ship building industry in Guyana and your role in the same?
The establishment of the Neptunus facility in Guyana will significantly benefit the defense sector in several ways:
- Enhanced Maritime Security: Building and maintaining ships domestically will improve Guyana’s ability to patrol and secure its maritime borders, combating illegal activities.
- Rapid Response and Maintenance: Local shipbuilding capabilities will reduce downtime for repairs, ensuring the naval fleet remains operational and effective.
- Technological Advancements: State-of-the-art technology transfer will enhance the defense sector’s ability to build and maintain advanced naval vessels.
- Training and Skill Development: Specialized training for the local workforce will create skilled professionals, boosting defense sector effectiveness.
- Economic and Strategic Autonomy: Domestic shipbuilding reduces reliance on foreign entities, enhancing strategic autonomy during crises.
- Boost to Defense Budget: Economic benefits from the facility can increase funding for modernizing the defense forces.
- Local Supply Chain Strengthening: Developing a local supply chain for materials and components will reduce costs and lead times for naval projects.”