Marine Metals, a new company led by former Euronav chief Hugo De Stoop, has announced plans to base large-scale ship recycling in Europe and supply low-carbon steel to the market. The idea sounds straightforward: recycling ageing ships closer to home and feeding the recovered metal into European steelmaking. A closer look at the data and global regulations shows that the plan does not match the reality of ship recycling as it works today.

Europe’s Capacity Gap and Global Reality

Europe has set strict rules through the EU Ship Recycling Regulation (EUSRR). Only facilities on the EU’s approved list can recycle EU-flagged ships. The latest list contains 43 yards, including 11 in Turkey, 1 in the United States, and the rest in EU countries, Norway, and the UK. Most of these are small repair or shipbuilding yards. They lack the experience, heavy lifting equipment, and hazardous waste handling capacity needed to recycle large ocean-going vessels. EU and industry assessments have already stated that this capacity is too small to meet the needs of the global fleet.

While Europe debates how to expand its own network, a global framework is already in force. The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) took effect on 26 June 2025. HKC requires every ship to keep an Inventory of Hazardous Materials (IHM), to develop an approved Ship Recycling Plan, and to recycle only at certified yards. All ships must carry a Ready for Recycling Certificate. India has prepared early: more than 110 of about 120 yards at Alang are certified as HKC compliant through independent class society audits. Bangladesh is increasing its compliance capacity as well. Currently, they have 17 HKC-certified yards. The European Community Shipowners’ Associations (ECSA) and BIMCO have both called on the EU to bring the EUSRR into line with HKC so that owners can work with one global rule.

Marine Metals also argues that Europe needs a local source of green steel. Trade data shows a different picture. The EU exported about 19.2 million tonnes of recycled steel scrap in 2023 and about 17 million tonnes in 2024, mainly to Turkey, India, Egypt, and the UK. Europe is already a net exporter of scrap. Processing end of life ships in Europe only to ship the steel overseas again would add handling costs and emissions without creating a new domestic supply chain.
South Asia demonstrates how large scale recycling already supports a circular economy. Independent studies and GMS field data show that over 97% of a ship’s material is recovered, reused, or recycled. India alone has dismantled over 8,500 ships in four decades, recovering about 67 million tonnes of steel, enough for more than 9,700 Eiffel Towers by weight. Thousands of second-hand businesses resell engines, generators, cables, and fittings, extending product life and cutting demand for new manufacturing. This is not a plan on paper but a functioning market that meets circular economy goals every day.
 

Costs, Emissions, and the Better Path Forward

The emissions impact of diverting ships to Europe is also significant. A large crude carrier that travels 3,000 nautical miles out of its way to reach a European yard burns roughly 550 tonnes of bunker fuel and releases around 1,700 tonnes of CO₂. If the recovered scrap is later shipped by container to Asia for re-rolling, the carbon footprint grows further. These extra emissions are not accounted for in the current European recycling policy.

Costs will fall on shipowners, investors, and taxpayers if Europe continues down this path. Shipowners face longer voyages, higher yard fees, and limited slots. Investors risk putting capital into high cost facilities that may never reach the scale needed to compete. Public funds may be used to subsidise uncompetitive projects. The European Commission has already reported cases of shipowners reflagging vessels to avoid EUSRR restrictions, which shows how rules that diverge from global practice create market distortions.

A better course is clear. The EU should bring the EUSRR into line with the Hong Kong Convention and recognise HKC certified yards worldwide, including those in India and Bangladesh. Shipowners should require traceable evidence of safe and responsible recycling through independent programs such as the GMS Sustainable Ship and Offshore Recycling Program (SSORP). Public funding should support real improvements in health, safety, and waste treatment, where most ships are already recycled, not in building parallel capacity with uncertain impact.

Marine Metals describes a European future for ship recycling, but the facts point elsewhere. The world already has a large, certified capacity that meets the highest international standards. Aligning European policy with that reality will deliver better environmental results, lower emissions, and fairer costs for shipowners and society.