The demand for sustainable ship retrofitting is increasing. The Estonian government and companies are prepared to take this step by establishing a ship retrofit centre called the Estonian Marine Greentech & Retrofit Hub. This facility will cater to both local and international maritime companies. 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 Marine Greentech & Retrofit Hub will provide these essential services.

Ragmar Saksing, General Manager of the Estonian Maritime Cluster, stated that the green transition presents a significant opportunity as the market urgently needs new 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,” he noted.

“This means Estonia is one of the few places in Europe where the government helps cover some of the retrofit costs for green technologies.”
Ragmar Saksing, General Manager of Estonian Maritime Cluster

Estonian companies LTH Baas, Insta Globe Engineering, SRC, MindChip, Cybernetica, Avatech, Shore Link, and Baltic Workboats provide world-class green solutions. For instance, 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, which is currently a trending topic worldwide.

“One exciting area of innovation is the development of CO₂ capture equipment that can be installed directly on ships. This technology captures emissions before they are released into the air. Additionally, Estonia excels in providing digital solutions. For instance, energy management software helps ships optimise their fuel consumption and energy usage in real-time,” Saksing emphasised the opportunities available through Estonian companies.

When green electricity and alternative fuel infrastructure are implemented at ports, they create jobs, attract investments, and make Estonian ports more appealing to international ships.

Estonia’s advantages: speed, compactness, and modern digital solutions

One advantage of the Estonian ship retrofit centre is its speed and flexibility, according to Saksing. While large shipyards in Germany or the Netherlands may have several months of backlog, processes can be completed more quickly in Estonia. This is supported by the simplicity of the systems, which allows for quick decision-making.

Estonia has all the necessary expertise. “Everything can be done in one place: project planning, selection of green technology, installation, and testing. Even scientists and students participate in the process. This approach simplifies and accelerates services for foreign clients,” Saksing explained.

In addition to traditional ship retrofit work, Estonia has a significant advantage due to the strong development of existing and new digital technologies. These include near-zero-emission technologies, hydrogen technologies, batteries and digital control systems. “In Estonia, the transition to green technologies can be accomplished faster and with the necessary support. We may not be the largest, but we are intelligent and prepared to act quickly and with high quality. The Marine Greentech & Retrofit Hub is where you can test and utilise the latest innovations rather than just improving the old,” said Saksing.

And most importantly, the Estonian government is investing €25 million in ship retrofitting. “This means Estonia is one of the few places in Europe where the government helps cover some of the retrofit costs for green technologies,” Saksing said.

The state supports ship retrofit projects with €25 million

The Estonian government is allocating €25 million to support the ship retrofit centre, which will provide partial reimbursement for investments made in Estonia. This means that international maritime companies utilising retrofit services in Estonia can receive a part of their project costs back as financial support from the Estonian government.

The €25 million allocated by the Estonian government is not the total investment but support – 10-30% of the overall project cost. This means shipowners must contribute the remaining part, depending on the support rate. “This €25 million can stimulate investments ranging from €80 million to €250 million in Estonia’s maritime sector. These investments will not only focus on retrofitting ships for a green transition but also enhance infrastructure, create jobs, and improve services and digital solutions,” Saksing explained.

“Everything can be done in one place: project planning, selection of green technology, installation, and testing. Even scientists and students participate in the process. This approach simplifies and accelerates services for foreign clients.”
Ragmar Saksing, General Manager of Estonian Maritime Cluster

The support measure reinforces Estonia’s position on the global stage as a leader in maritime green technologies and ship retrofitting. As a result, foreign clients are increasingly bringing their ships to Estonian ports. “With this development, we move up the value chain in ship retrofitting across all segments. We secure more main contractor contracts, allowing us to lead the selection of designs, technologies, and industrial production. We will carry out these projects with companies from across Estonia, including furniture manufacturers in Pärnu, electronics firms in Elva, electrical engineering companies in Kose, and businesses in the maritime industry in Saaremaa,” said Saksing.

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.

According to the General Manager of the Estonian Maritime Cluster, €25 million in support is a powerful signal. “Estonia is committed to transitioning to green technologies, and this commitment is recognised by the international maritime community,” Saksing said. At the end of March, he presented the concept and opportunities of the Estonian Retrofit Hub at the Singapore Maritime Week fair and conference. Alongside the Estonian Maritime Cluster, eight Estonian maritime companies participated under the leadership of Enterprise Estonia: SRC Group, Cybernetica, LTH Baas, Insta Globe Engineering, MindChip, Avatec Marine, Varcus Solutions, and Consolate del Mare.

According to Ragmar Saksing, there is growing interest in Estonia as a location for retrofitting ships. “Eyes are turning towards us; now it’s our turn to prove that we can take action.” Estonian maritime companies already have offices in Italy, France, Norway, Germany, and the Netherlands. 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,” Saksing stated.

He believes the momentum will begin to build up in 2025 after the first successful project in Estonia is completed.

FACTS

Services offered by the Estonian Marine Greentech & Retrofit Hub:

• Consulting and project management – helping choose the appropriate green technology and make a plan, including assistance in applying for support.
• Ship retrofit work – main contracting, subcontracting, interior and exterior design, supply chain management, integration, shore, dock, and port services.
• Installing energy and electrical systems – offering shore power solutions, battery systems, engines, drives, connections, etc.
• Selection of technology and digital solutions – digital solutions related to CO2 savings and/or energy savings.
• Testing and certification – ensuring everything meets international requirements.

Source: Estonian Maritime Cluster

GOOD TO KNOW

EstFlag program supports Retrofit Hub

• Estonia supports the international activities and development of shipping companies with a special package of laws, thanks to which shipowners, crewing companies and technical management service providers can obtain more favourable tax conditions and benefits of the Estonian ship flag.
• The EstFlag program is a broader trust and business environment package that provides shipowners with assurance and support for retrofit projects.
• For example, if a ship is registered under the Estonian flag, communication with authorities is faster and more transparent, project approvals move more quickly, and the entire process is more flexible. Additionally, through EstFlag, support or benefits that promote the adoption of green technology, especially if innovative solutions are involved, are possible.
• If a ship is under the Estonian flag, it has direct access to services and support developed in Estonia, including those offered by the retrofit hub.

Source: Estonian Maritime Cluster, Republic of Estonia Transport Administration

This content is funded by the European Union – NextGenerationEU

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