De-Mystifying ROI on Wind Assisted Propulsion Systems (WAPS)

The maritime industry is abuzz with discussions on Wind Assisted Propulsion Systems (WAPS), yet myths continue to shape perceptions, often deterring shipowners from embracing this transformative technology.

At Njord, we see WAPS as a mature and increasingly viable solution for improving vessel efficiency and reducing emissions. Below, we address ten common myths surrounding WAPS and provide clarity to shipowners and charterers navigating this complex but promising landscape.

ROI Takes 8-10 Years
The outdated assumption that ROI is 8-10 years stems from earlier studies when fuel prices were lower, and equipment costs higher. Today, WAPS can achieve ROI in less than five years on favourable routes, especially with the integration of schemes like FuelEU Maritime and application of weather routing. One to two years ago, studies showed longer payback periods due to higher CAPEX and lower fuel prices. However, costs have decreased, and regulatory incentives now help reduce ROI to under five years for many cases. Njord performs high-level simulations to identify favourable conditions for sub-five-year ROI, aligning installations with fleet strategy and operational goals.

Wind Assisted Propulsion is Too Novel and Unproven
WAPS is no longer in its infancy. With numerous installations globally and production scaling up, it is now a proven and robust solution. Wind-assisted propulsion is mature, with multiple installations already operational and many more in the pipeline. The question is no longer “Does it work?” but “Will it work for your specific vessel and trade?” Njord ensures clients get tailored evaluations that address these specifics.

Savings are Not High Enough
The success of WAPS hinges on aligning the technology with the vessel’s operational profile and routing. On favourable routes with consistent wind conditions, strategically selected installations can deliver savings well above 10%. For example, leveraging high-level simulations, Njord evaluates specific trade patterns to identify where WAPS can provide maximum efficiency. This tailored approach ensures that shipowners invest only in the most viable opportunities, allowing double-digit savings to be realised without unnecessary complexity or cost. This demonstrates how optimising the combination of vessel type, wind patterns, and technology selection drives exceptional results.

‍CAPEX is Too High
Costs for WAPS have dropped significantly due to economies of scale and production efficiencies. Suppliers are also exploring buyback schemes and secondary markets, reducing the perceived financial risk. Residual value is key - systems can be resold, redeployed, or integrated into other vessels, making the initial investment far less daunting. For shipowners with long-term asset strategies, the added value of flexible CAPEX recovery makes WAPS even more appealing.

Delivery Times are Too Long
While lead times once stretched up to 15 months, some suppliers are now able to deliver within a year, in some cases down to 6-8 months. This shift is driven by production scalability and regional manufacturing. Njord helps clients align WAPS installations with dry-docking schedules to avoid service interruptions. To capitalise on these improved timelines, proactive planning is advised to align installations with fleet operations and avoid missing crucial scheduling windows.

Wind Assisted Propulsion is Only Relevant to Install on Few Vessel Types
While space limitations can be challenging, Njord’s feasibility studies ensure solutions are tailored. For example, bulk carriers transporting iron ore might face risks of cargo interfering with sails. In such cases, installing a single large sail on the bow where it doesn’t obstruct cargo operations can still deliver significant ROI. Creative adaptations like these make WAPS viable for diverse vessel types, even when space or cargo constraints exist.

Wind Assisted Propulsion is not Effective on Specific Trade Routes
The belief that WAPS doesn’t work on certain trade routes is outdated. Certain areas are wore attractive reg. wind than others, however the perception needs to constantly be updated taking into account the equipment cost development, fuel cost increase and impact from regulation such as Fuel EU Maritime. Also modern weather routing tools optimising for wind, can further optimise their voyages to capitalise on wind conditions.

Njord uses advanced simulations to identify these opportunities, demonstrating that WAPS can be a valuable solution across a broad spectrum of vessel types and routes.

Wind Assisted Propulsion is Too Complicated to Install
While installations were complex during early deployments, class societies and flag states now have established processes. Today’s installations are no more complicated than other retrofits. Processes have matured, with clear guidelines for approvals and integrations. Njord’s project management expertise ensures a seamless experience, minimising disruptions during installation and addressing technical concerns efficiently.

WAPS does not Enhance Vessel Value
Beyond fuel savings, WAPS enhances asset value, regulatory compliance, and operational flexibility. Systems retain residual value, offering options for resale or redeployment. For example, sails with lifespans exceeding 25 years can be transferred to other vessels or sold back to suppliers, creating added financial value even if operational needs change. This residual value de-risks business cases and strengthens long-term fleet strategies.

Wind Assisted Propulsion is Irrelevant when Trading Outside EU
While regulatory schemes like FuelEU Maritime drive adoption, WAPS delivers value globally. For instance, a vessel operating exclusively in north-south routes outside the EU can still achieve strong ROI if wind conditions are favorable. Savings from wind propulsion remain relevant regardless of geography, as the primary drivers are fuel efficiency and emissions reduction. By focusing on operational efficiency and cost savings, WAPS remains a compelling option for shipowners worldwide.

WAPS represents a mature, flexible, and increasingly accessible solution for shipowners seeking efficiency and compliance. However, maximising its benefits requires rigorous evaluation and strategic planning.

At Njord, we specialise in holistic assessments to identify opportunities and ensure that WAPS investments align with long-term operational and financial goals. Shipowners should evaluate their full fleet, map out what makes sense, and create a plan. A little upfront effort can unlock significant long-term value.

Njord is here to provide the clarity and expertise required to turn WAPS from myth into opportunity, positioning you to lead in maritime efficiency.

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