This interview first appeared as part of Accelleron’s 2022 Annual Report, published on March 29th, 2023
What was the decisive factor in you taking on the position as CEO of Accelleron?
It was a once-in-a-lifetime opportunity. I knew that turbochargers were going to be a fantastic business and that Accelleron would be a market leader in high-performance turbochargers for internal combustion engines. It is great to start a new chapter and become part of the Accelleron family. Also, I can contribute my experience to Accelleron’s large service business because of my previous work as head of a gas turbine service business with a multi-billion-turnover and my previous position at Sulzer as a member of the Executive Committee and Division President of the service organization.
How have you settled in so far?
The learning curve was steep, but I felt welcomed and supported right away. That quickly got me to the point where I could support both the company and the people on this exciting journey.
You started your new post in March 2022 amid a geopolitical crisis. How did that affect your start period?
Initially, our focus was on ensuring that our organization was prepared as thoroughly and swiftly as possible for becoming an independent company.
The schedule was quite tight, and the business was and still is performing at a high level. Service is performing strongly overall. Regarding new installations, many ships had been ordered, and power plants were running at full speed, too. Yet we also faced special challenges, such as supply chain issues and the Russian war of aggression against Ukraine. We decided to withdraw from the Russian market and wind down our business. So, over time, that affected the business, but Russia only accounted for about 1% to 2% of our business. Our presence was minimal, and we had left the market entirely by the end of 2022.
Your predecessor as Division President is now your Chairman. How do the two of you work together?
Especially in the beginning, he helped me get up to speed. A big focus was on visiting our customers. Accelleron has always devoted an impressive amount of time and effort to being close to its customers. Now that our introductory phase is over, my predecessor is clearly focused on his role as Chairman, and I’m focused on the role of CEO. We have an excellent relationship, with clear roles and responsibilities on both sides.
What insights did you gain from these customer visits?
My first impression was how close we are to our customers. We very openly discussed the challenges they face. There is a great deal of uncertainty about what the transition to a carbon-neutral world will look like. We’re in a good position to help with our products and our industry know-how.
Does that make us a thought leader?
In this field, we definitely are, but we have to remain humble. The challenge is bigger than just the turbocharger. It starts out with the production of future fuels, transportation, storage, combustion, emissions, and so on. So, it’s a broad field, but we definitely have a critical component that will be a huge help.
Accelleron’s digital platform Tekomar XPERT, for example, focuses not only on turbochargers but also on engine performance. Aren’t you taking over your customers’ business?
Not at all. We have a solution that is independent of the engine original equipment manufacturers (OEMs). They have their own proprietary software, which is probably more accurate for their engines. Some customers need a platform that is independent of the OEM – and that is exactly what we offer them. So, there is no competition; it depends on what the customer needs. If they want an OEM-specific solution, they will choose one from the OEM. On the other hand, if they want a single platform for all the different combustion engines, they will opt for our solution instead.
What is the most important outcome for the customer when using Tekomar XPERT?
Tekomar XPERT is a software as a service platform that is evolving. It started with modules with the engine in focus. The customer can use simple information to figure out how to improve efficiency by saving fuel and reducing CO2 emissions. As regulations have become ever more stringent, it is important that the customers understand their CO2 emissions and how they can influence them. Tekomar XPERT provides good guidance and is a helpful planning tool for this purpose. We are now also developing other modules in our platform, including one to determine the ideal moment for hull and propeller cleaning cycles, which enhances efficiency and enables customers to optimize their planning operations. The idea behind Tekomar XPERT is to give the customer a comprehensive tool that they can use to reduce their CO2 emissions, while also turning operational cost savings into a reality. Naturally, our core business is and remains component manufacturing. But it’s about the customer’s entire emissions reduction journey. Reducing emissions is very complex.
Speaking of emissions: what direction do you believe the regulatory environment will develop in?
I think the maritime industry will move in the same direction as the power generation industry. Power generation has set itself a goal of being carbon neutral by 2050. The International Maritime Organization (IMO) is aiming to achieve a 50% reduction by 2050, which definitely isn’t ambitious enough. It is also clear that the maritime industry must become carbon neutral by 2050. At present, the shipping industry’s CO2 emissions account for about 3% of global CO2 emissions. Even though we’re just talking about 3% – power generation accounts for one third of global CO2 emissions, every single percent counts.
How much does Accelleron’s turbocharger contribute to CO2 emissions?
A combustion engine without a turbocharger generates 10% more CO2 emissions. The maritime industry emits about 1 billion metric tons of CO2 in total. Ten percent of this is 100 million metric tons of CO2 emissions. This is equivalent to the emissions generated by approximately 40 million mid-range passenger cars driving an estimated 20,000 km over a full year. And Accelleron’s turbochargers have the highest efficiency compared to the competition.
The global economy as a whole is in bad shape, and Accelleron is growing at a considerable pace. How would you categorize this scenario?
There is currently high demand for LNG tankers. Not only are they needed for operating power plants in Europe; they are also vital to industry. The U.S. has a large supply of shale gas, and pipelines and transportation capacity are being expanded, creating further demand. In addition, many emergency diesel generators are needed because of the risk of a temporary power shutdown. It will take years to build a global LNG infrastructure and to make up for Europe’s previous reliance on and use of Russian pipeline gas.