Oppsirk, a cross-sector and viable economic model for circular ship recycling, that got its momentum during the previous Lab editions, received significant interest among participants. With upcycling, steel retains its original properties for direct reuse without heavy industrial processing, yielding up to ten times more value than recycled scrap and emitting up to 97% less greenhouse gases. 

Reused steel has already been successfully used in several construction projects in Norway thanks to the successful collaboration between AF Decom and Nordic Circles. However, the sector needs a more stable flow of end-of-life vessels. "We are waiting for shipowners to enter the chat," said John Jacobsen from Nordic Circles. The session reframed end-of-life ships as strategic assets, "literal metal mines of the future", as Johannes Thrane from AF Decom framed them, where critical raw materials such as manganese, now scarce due to supply chain disruptions, or nickel-rich steel from LNG tankers will soon make responsible recycling a matter of necessity.

Innovations were the core topic of this Ship Recycling Lab, and the Tech Slam Session gave the floor to disruptors ready to take ship recycling to the next level. TNO showed how steel can be reused and its value preserved through material information, Bawat presented their ballast water stream, often an overlooked hazardous waste processing, where heat neutralises both contaminants and invasive species, SHEREC brought robotics and AI to the yard, improving hull-cutting efficiency and worker safety, with 3D scans complementing the mandatory Inventory of Hazardous Materials, and RemoraDocks set out to connect buyers and sellers of onboard equipment before it becomes waste.

The Lab also showcased the Circles of Life Ship Material Passport (SMP) and Shipyard Environmental Performance Index (SEPI), presented by Martin Verboom, Renaud Gaudel and Nour Abu Muheisen (Damen). The discussion centred on whether we need more bureaucracy to achieve a more circular industry, and how passports can be implemented in a way that creates value without adding administrative burden. Now at the end of their development phase, these digital passports enhance sustainability and value retention across a vessel's lifecycle, and since reuse, not recycling, is the goal, up-to-date and accessible information on ship components will be crucial to further advance circularity in the maritime sector. 

More than 50% of the information a material passport requires is already available. The challenge is making better use of existing data, avoiding duplication, and sharing it efficiently across the value chain. The passports can also offer benefits beyond sustainability reporting, keeping information on valuable assets, materials, and components, contributing to material recovery at the end of vessels’ operations. The practicality of the tools was demonstrated with the example of Damen’s Circular Crew Cabin, showcasing the concept put into practice. 

CirclesOfLife engages with classification societies to explore how the documents can be maintained and updated over time, ensuring valuable information stays accessible and relevant from build to dismantling. Recognising that this understanding is not yet shared across the whole value chain, the partners fully support the EU Industrial Maritime Value Alliance and its ambition to bring the maritime chain together. 

What is needed to increase sustainable capacities? Scaling up technologies, cutting automation, material traceability. The projects must also be “bankable and investable”, as pointed out by Antidia Citores from Green Marine Europe. End-of-life vessels can provide premium E3 steel, yet European yards operate under their capacities. Europe is projected to become scrap importer by 2030. Without strategic commitment, European-owned assets will continue sailing away to third markets. 

The European Union aims for circularity and decarbonisation, while strengthening its industrial resilience and strategic autonomy. Nevertheless, the European Commission provisionally greenlights two Indian beaching yards, which sparked a heated debate. The Commission defended its decision, while most participants criticised the move over the lack of a level playing field, discrepancies in the inspection reports, and its apparent contradiction of the EU Clean Industrial Deal, Industrial Maritime Strategy and the upcoming Circular Economy Act. 

Cross-stakeholder collaborations, like between Petrobras, Gerdau, and Porto do Açu in Brazil, or floating dry-docks, developed by Elegant Exit Company, already lead the way in emerging ship recycling hubs in other parts of the world.

The standards, technologies and business cases already exist. Emissions trading revenues could be directed into sustainable recycling of assets, giving shipowners a financial reason to retire and recycle vessels responsibly rather than at the lowest cost. The Carbon Border Adjustment Mechanism is already impactful. Being included in imported goods prices, it can be avoided by keeping steel in Europe, turning responsible recycling from a compliance cost into a competitive advantage. The oil and gas sector offers a solution worth copying, setting money aside for decommissioning before assets reach their end of life. Could shipping do the same? 

What has been missing is the willingness to treat end-of-life ships as a managed, financed and regulated responsibility. This reality will not be successful without a stable and predictable regulatory framework. As decarbonisation of the maritime industry becomes key, responsible recycling of maritime assets must be fully taken into equation.