Report: AI Can Help Shipping Industry Cut Down Emissions

Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
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Report: AI Can Help Shipping Industry Cut Down Emissions

Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration

The global commercial shipping industry could cut down its carbon emissions by 47 million tons per year by deploying artificial intelligence for sea navigation, a study by autonomous shipping startup Orca AI showed on Tuesday.
The use of the technology could reduce the need for maneuvers and route deviation from close encounters with high-risk marine targets such as vessels, buoys and sea mammals by alerting the crew in real time, according to the report.
WHY IT IS IMPORTANT
Shipping, responsible for moving about 90% of global trade, contributes nearly 3% to the world's carbon dioxide emissions. This share is anticipated to rise in the coming years unless stricter pollution control measures are implemented.
The International Maritime Organization aims to cut emissions by 20% by 2030, a target under threat from the ongoing Red Sea crisis.
KEY QUOTE
"In the short term, it can lead to fewer crew members on the bridge, while those who are on the bridge will have a reduced workload and more attention to tackle complex navigational tasks, optimizing the voyage and reducing fuel and emissions," Orca AI CEO Yarden Gross told Reuters.
"In the long term, it will open the door to fully autonomous shipping."
CONTEXT
Global carbon dioxide shipping emissions reached an estimated 858 million tons in 2022, a marginal rise from the previous year, according to the Organization for Economic Cooperation and Development.
An average of 2,976 marine incidents are reported per year, Orca AI's study showed.
BY THE NUMBERS
The reduction in route deviations could help ships shave off 38.2 million nautical miles per year from their travel, saving an average of $100,000 in fuel costs per vessel, according to Orca AI's report.
AI could also lower close encounters by 33% in open waters, it said.



Microsoft Deal Signals Booming Demand from Data Centers to Power AI

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
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Microsoft Deal Signals Booming Demand from Data Centers to Power AI

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo

US utilities are finally signing concrete supply deals with data-center operators as the artificial-intelligence wave sparks a surge in power demand, paving the way for higher profits in the coming quarters.

Data centers are expected to account for 8% of the power generated in the US by 2030, compared with 3% in 2022, according to a Goldman Sachs report in May.

Here are some deals announced by utilities in 2024, according to Reuters.

Constellation Energy signed an exclusive deal with Microsoft to restart one of the units at the Three Mile Island nuclear plant in Pennsylvania.

Under the agreement, the utility will provide 835 megawatts (MW) of energy to the tech giant's data centers. The deal would also mark the first ever restart of a nuclear power plant in the US after it was shut down.

Ameren signed a supply deal with a data center with a power capacity of 250 megawatt (MW). It has also received expansion commitments and executed new contracts for more 85 MW of additional load for smaller data centers and other industries across Missouri and Illinois.

Alliant Energy said it has executed multiple power supply deals with data centers, but did not disclose details.

Exelon said it is in the engineering phase for more than 5 GW of data center capacity. Some data-center customers have also made deposits for ComEd - Exelon's subsidiary - to order transmission and breakers, the firm said during a post-earnings call.

American Electric Power signed letters of intent to power an additional 15 GW of data centers by the end of the decade.

Xcel Energy will supply power to Meta Platforms' data center in Minnesota, expected to come online in late summer 2025.

Entergy has received legislative approval for investment in transmission and generation to serve Amazon's upcoming Amazon Web Services (AWS) facility in Mississippi. Pinnacle West Capital has more than 4,000 MW of committed data center customers, not including the backlog of more than 10,000 data center requests it has received.

AES signed an agreement with Google for 310 megawatts to support its Ohio data centers.

It further expanded a previously announced partnership with Google and signed a 15-year power purchase agreement for 727 megawatts in Texas. Talen Energy announced a deal to supply electricity and its 960-megawatt data center campus to Amazon's AWS in Pennsylvania.

NextEra's renewables segment saw a rise of 3 gigawatts (GW) worth of renewables and storage projects in second quarter, including Google's 860 megawatts (MW) demand for its data center power.