Creating Circular Economy Clusters for Sustainable Ship Recycling in Denmark

The project has explored the potential for Danish yards and maritime industry, addressing questions regarding the size and composition of the relevant near-end-of-life fleet, the structure and capabilities of the Danish yards and maritime industry and a deeper analysis of the market for ship recycling in Denmark, including the pricing of end-of-life shipping assets and the nature of transactions.

The study found that the structure and capabilities of the ports, yards and maritime industry places Denmark in a favourable position to develop its ship recycling industry around circular economy principles, but that significant barriers must be overcome both in terms of location and public acceptance as well as market strategies and price formation. In addition, for ship recycling in Denmark to become truly circular, there must be closer coordination between ports, yards and maritime suppliers where business models are developed around a lifecycle perspective on ships.