When Fornæs Ship Recycling Aps came into being, it was a bit of a coincidence. Kresten Hjelm, founder of Fornæs Ship Recycling Aps, and his partner at the time were fishermen, and in the early 1990s they needed to get rid of one of their ships. Unlike today, back then you had to pay to have ships scrapped, and the two partners found it hard to see the point of paying DKK 150,000 to get rid of the ship.
The short story is that they decided to chop up the ship themselves in Grenaa. With a pitcher, angle grinder and other hand tools, they went to war and succeeded in getting rid of the ship. Fornæs Ship Recycling Aps was founded and has since grown. Today, they are one of the largest ship recycling companies in Denmark1. Their ideology is that as much as possible should be reused, recycled or upcycled - so that the residual product for landfill is as small as possible. This is good for the environment and good for the economy.
Fornæs Ship Recycling Aps is one of the veterans at the Port of Grenaa. For three decades, they have been located in different places at the port - both when it comes to the slipway, where all scrapping takes place, and when it comes to warehouse and administration. The slipway is located in the port area on Nordhavnsvej, while the warehouse and administration are located just a stone's throw from the port on Rolshøjvej in Grenaa.
Kick the tires before you buy
One of the basic principles that has followed the business throughout the years is that all ships purchased by the company are assessed on content and condition. This principle has been applied to all of the approximately 2,000 ships Fornæs Ship Recycling Aps has scrapped over the past thirty years. "When we buy a ship for scrapping, we are, in popular terms, out kicking the tires, so we know what we are buying," says Kresten Hjelm. He emphasizes that it can be a really bad deal to buy a ship that comes with 20 tons of concrete ballast. Especially if you haven't noticed it. So at Fornæs Ship Recycling Aps, they make an effort to select the right ships.
Recycling is the core business
Both Kresten Hjelm and Keld Kokholm, who together make up the company's management team, are from Northern Jutland. Therefore, it's only natural that a North Jutlandic mindset and a touch of modesty characterize the atmosphere as they show you around the large warehouses.
Here in the halls, you'll find everything you need if you're looking for a used marine engine, a spare part or an inflatable boat. You just have to be sure that what you're looking for is something from a ship, because you'll find it here. Either on the floor, on a shelf or in one of the boxes.
"We recycle, others buy iron. This means we dismantle the ships with a wrench. Others use an excavator and a grab to dismantle the ships. We can't do that, because then it's not recycling, but only iron for remelting and residual waste for landfill that comes out of a ship," says Kresten Hjelm, while he and Keld Kokholm kindly show you around the large warehouses, which seem almost endless.
Ship recycling will be different in a few years
But what about the future and all the talk about sustainability, green transition and climate impact? Kresten Hjelm is in no doubt - according to him, it will always be good business to be 'green', to recycle and get the best, and the most, out of what is used. When it comes to the question of where Fornæs Ship Recycling Aps will be in ten years, he looks over to Keld Kokholm, who gives his prediction.
"We definitely won't have the same shop in ten years. It will be different. I think we'll see a much greater trend towards reuse, upcycling and recycling than we see today," he says, citing the evolution of ships. "Ships have become much more technical, there is much more electronics on board. It will require a lot more of us and our employees to handle it," explains Keld Kokholm, adding that the employees who will be scrapping the ships will have to be trained in a different way to handle the task.
There will still be plenty of rough work to disassemble the ship's structures, but it takes a completely different skill set to dismantle the sensitive electronics that now control most everything on a modern vessel. These days, the company is seeing a greater demand for documentation. Be it data sheets on parts, or documentation of a spare part's total operating time, or something else entirely. There are always new requirements to comply with. Either from the authorities or from customers. Fornæs Ship Recycling Aps handles these requirements professionally and safely, and is ready to scrap vessels for many years to come at the port of Grenaa.
FACTS ABOUT FORNÆS SHIP RECYCLING Aps:
- Kresten Hjelm is the founder of the company and Keld Kokholm has been co-owner and part of the management team since January 1, 2019.
- The company was incorporated on May 1, 1992
- The company has scrapped approximately 2000 vessels, the majority of which have been fishing vessels.
- There are 25 employees, of which five are in administration
- Profit for the year 2022 after tax DKK 2.008.659,-
According to a report published by CBS Maritime in 2021, Denmark is in the European super league when it comes to ship recycling and in the top 15 in the world when it comes to the number of ships that are recycled. Denmark is also one of the countries with the most approved ship recycling facilities on the EU list.
This is an opinion piece written by Henrik Carstensen, CEO Port of Grenaa. The post was published in finans.dk on September 12, 2023.
Trust and collaboration must be rebuilt after the Open Door process
To restart the good cooperation on wind turbine projects, the minister should consider alternative options for approval of the many serious "formerly open door projects".
The entire wind industry was in shock when the government slammed the door on the Open Door projects shortly before the summer vacation. There were many projects that were serious projects, close to the coast and created in close collaboration with the municipalities and local businesses.
I'm hardly the only local businessman who is left wondering. Both locally and in the government, we have a common understanding that we need to expand our green electricity in Denmark as soon as possible to ensure security of supply in Denmark and at the same time free ourselves from, for example, Russian gas. It was therefore obvious to approve as many serious Open Door projects as possible.
Specifically, we are of course still working to get the projects through and the green power produced. However, there is also a bigger issue in the whole Open Door process. It is a crucial prerequisite for an effective green transition in Denmark that we can trust each other across government, private window suppliers and manufacturers, municipalities and the business community. We must have confidence in a proper framework for development and predictability in the agreements we enter into with each other.
To restart the good cooperation, the minister could appropriately consider alternative options for approval of the many serious "formerly open door projects". This could be in a transitional arrangement, so that we in the local business community can quickly move forward with turning climate visions into reality.
Read our consultation response addressed to regional council chairman Anders Kühnau
Dear Anders,
This communication is submitted on behalf of Port of Grenaa, as well as the many companies represented at our port.
First of all, we can inform you that the Port of Grenaa is a large industrial port. Approximately 80 companies are represented at the port and these represent a total of approximately 2100 employees.
Our inquiry is made due to a strong concern from all stakeholders at Grenaa Harbor, related to Region Midtjylland's plans to close the emergency room in Grenaa today, as well as a permanent closure of the emergency medical vehicle.
Many of the companies at the Port of Grenaa work in the "hard industry" (blacksmiths, shipyard workers, electricians, etc.), which means a predominant and ongoing high risk of occupational injuries of both minor and major nature.
Today, these injuries can usually be treated at the emergency room in Grenaa during the daytime, but with the region's plans, this will mean that the injured will have to drive to Randers to be treated for injuries that cannot wait until after 16:00.
In addition to the extra driving time to/from Randers, there is a high risk that the injuries will be aggravated due to the long transportation, which in specific cases could have serious consequences.
Unfortunately, over the years we have experienced several serious accidents at the Port of Grenaa (primarily at the companies established at the port).
When these accidents happen - and other accidents in general - it has been a great positive security for the port's businesses that the emergency medical vehicle with specialized anaesthesiologists has been able to arrive quickly and thus contribute to a quick response to often very serious accidents and injuries.
Having an emergency medical vehicle in the immediate area means a high degree of certainty that the anesthesiologist on duty can quickly be present to provide life-saving emergency assistance.
As it is now, the emergency doctor is always much closer than the helicopter and can start treatment quickly. It should also be mentioned that in about 30% of cases, the helicopter may be exposed to weather conditions that prevent it from flying to the scene of an accident.
The Port of Grenaa and Norddjurs Municipality fight a daily battle to preserve the current jobs in the municipality, and at the same time we have a targeted effort to attract new companies to the area.
With your possible cutbacks, we feel confident that many of the existing companies may consider alternative locations for their business to ensure reasonable accessibility to e.g. emergency care and medical vans for their employees.
In addition, new potential businesses will certainly reconsider their plans to establish themselves in the municipality, as proximity to treatment for their employees means a lot to them.
Norddjurs Municipality generally has a strong focus on attracting new settlers, as they will help ensure that the municipality's businesses have a local workforce.
Your initiatives will certainly mean that new and potential settlers will reconsider whether they want to move to the municipality. This is sad for both Norddjurs Municipality and the many companies in the municipality (including the Port of Grenaa and the many companies we represent).
We hope that you will positively consider our request in the final negotiations next week regarding the closure of the emergency room in Grenaa and the closure of the emergency medical vehicle, as this - if the decision is adopted - could have disastrous consequences in many areas for the municipality and others and, in addition, cost human lives.
We are of course available to answer any further questions you may have, and we look forward to hearing your comments.
Many greetings and on behalf of Port of Grenaa
Bent Hansen, Chairman of the Board Laura Hay, Vice Chairman Henrik Carstensen, CEO
It has been a great pleasure to have the municipal council from Norddjurs Municipality visit the Port of Grenaa.
Today, we have held the annual dialog meeting, where the municipal council got an important insight into what is going on at the Port of Grenaa and what the future strategy is to keep the port in as good shape as possible.
This year's dialog meeting has been a little different than usual. Normally, the meeting takes place in the council chamber at Grenaa Town Hall, but this year the council has agreed to visit the harbor and see how things work.
The local politicians were on a harbor tour by bus, along with Chairman of the Board of Port of Grenaa Bent Hansen, Vice Chairman Laura Hay and CEO Henrik Carstensen.
They saw a port in top shape, a port that is ready to solve all the tasks that land on the quay every week and, not least, a port that for many years to come will be busy helping the wind industry when new offshore wind farms are built in the Kattegat and other areas.
This is an opinion piece written by Henrik Carstensen, CEO Port of Grenaa and board member of Danish Ports. The article was published in Morgenavisen Jyllands-Posten on August 1, 2023.
Rejection of open door projects has major consequences for local areas
If the peripheral municipalities are to keep up with the green transition, we need to ensure green power in the local areas. Several smaller coastal projects have now been rejected for open door projects, but these projects could have secured jobs, green investments and growth for the municipalities.
The projects have strong local political support and have been developed in collaboration with the municipalities, but unfortunately now have long prospects. Several of the smaller coastal projects that have been rejected are good examples of sound projects developed in close collaboration between developers, municipalities and other local stakeholders.
Both Grenaa and Hanstholm offer excellent opportunities for establishing Power-to-X or other energy-demanding facilities, and in both areas, the municipalities and others are working ambitiously together to create the best possible conditions for utilizing power locally.
In the local areas, there are several good solutions. For example, the power could be used to produce green marine fuel, which is needed in both ports and can be exported from the ports' existing facilities.
The green power could also be used for the facilities that need to be connected if CO2 storage is to be established in the underground off the respective harbors. There are many good solutions, but they all require power. No power - no basis for green business development.
When it comes to new offshore wind projects, future government tenders up to 2030 will be in the North Sea and inland waters as well as on Bornholm. Therefore, one can quickly conclude that now that the door scheme has been closed, there are areas that will be lacking offshore wind projects. Much to the chagrin of local communities, where there are many plans that combine green energy and local growth.
In Grenaa, this is a very unfortunate situation, as Norddjurs Municipality is actively working to become a powerhouse in green energy, and open door projects are a crucial element of this.
One set of rules in open door is also what we know as Green Pool, which means that the offshore wind developer must finance a pool of DKK 165,000 per megawatt to the relevant municipality where the project is established.
The Green Pool can be used for a wide range of municipal initiatives and is administered by the local municipality. The purpose is to focus on climate and the environment. In the two examples mentioned, Grenaa and Vigsø are now missing out on green pool funds of just over DKK 126 million.
Yesterday, almost 100 people gathered for an infrastructure conference at Aarhus Airport. The conference aimed to bring together all the good forces to make an extra effort to improve the infrastructure in Djursland and especially on the Grenaa to Aarhus line.
From Port of Grenaa , CEO Henrik Carstensen, Chairman of the Board Bent Hansen and Vice-Chairman of the Board Laura Hay Uggla participated, and all three had the opportunity to exchange views with Minister of Finance Nicolai Wammen.
160 billion and a little for Djursland
As mentioned, the government was represented by Finance Minister Nicolai Wammen. He had a presentation based on the infrastructure reform "Denmark Forward" for DKK 160 billion, of which DKK 106 billion has been allocated to new projects around the country, including the line from Grenaa to Aarhus.
Today, a very small part of the stretch is a highway, a slightly longer stretch is a 2+1 expressway and the last 18 km or so from the Feldballe junction to Grenaa is an ordinary country road.
The road and traffic pass through the two towns - Tirstrup and Trustrup. Here, of course, there is also the heavy truck traffic, which every day consists of hundreds of ton trucks. They drive along this route, on their way with goods to and from companies in Djursland.
Overall, it is heavy, cumbersome, shaky, slow and noisy - either living in the towns the road passes through (Tirstrup and Trustrup), or driving between Aarhus and Grenaa.
Wammen aware of the challenge
Of course, port infrastructure was also discussed at the conference and the fact that the role of ports is important for infrastructure. Nicolai Wammen fully agreed with this point of view. "I am fully aware of the wishes about Port of Grenaa and I think they are relevant. But as far as the DKK 160 billion (Denmark forward ed.) are concerned, they are allocated, so any new things that may come are something that must be financed in new rolls," he said, among other things, and was also in no doubt about the need for better infrastructure on the A15, especially in light of the high level of activity on Port of Grenaa.
CEO Henrik Carstensen would have liked the Minister of Finance to have brought a pool of money to buy some asphalt to expand the A15. Since that was not the case, it was nevertheless a positive port director who summed up the day's conference.
"We see it as a positive thing that the Minister for Finance has set aside time to be here today. And it is clear that he is aware of the wishes and problems with the infrastructure that we face at Port of Grenaa. The problems with the A15 are well known. We keep pushing for a 2+1 road all the way to Grenaa and eventually we want a highway on the stretch from Grenaa to Aarhus. This will contribute to economic growth, more settlement in the area and connect Djursland even closer to the growth center Aarhus and the whole of East Jutland," said CEO Henrik Carstensen after the conference at Aarhus Airport.
For the fourth year in a row, and despite international unrest, Port of Grenaa has achieved a record-breaking turnover. It was therefore an extremely satisfied chairman of the board who at today's general meeting was able to present a turnover of DKK 72.2 million and a net profit of approximately DKK 11 million for the 2022 financial year in Port of Grenaa.
"Naturally, I, and the rest of the Board, take a very positive view of this result. Especially in light of the fact that 2022 was a difficult year in many ways, partly due to the unfortunate war in Ukraine, which caused energy and fuel prices to rise. And on top of that, an inflation rate that we have not seen higher since 1982," says Bent Hansen, Chairman of the Board of Port of Grenaa.
Henrik Carstensen, CEO of Port of Grenaa, is also very satisfied with this year's turnover and results. He points to one thing in particular that has been special for 2022.
"Last year was particularly notable in the bulk sector. Especially biomass made up a very large part of the bulk cargo that came across the quay. This was a result of the sudden energy crisis, which meant that raw material depots for the Danish heating plants had to be secured in a short time," says Henrik Carstensen.
Sustainable and climate-proof
Port of Grenaa, like most companies, is in a sustainable transition. One of the company's climate targets is to increase the share of hybrid or electric cars in the company to at least 50 % by 2025. This target was already achieved by the end of 2022, with 66 % of the fleet being hybrid or electric.
"In the past year, we have had an extra focus on the green transition. Sustainability and green transition is not something we just talk about. We do something about it," Bent Hansen emphasizes and continues: "In the Port of Grenaa's sustainability strategy, we have agreed that we will spend 10% of the port's profits on sustainable transition within our strategic focus areas. We are living up to that goal, also this year."
Certifications and infrastructure
Port of Grenaa has focused a great deal of attention on obtaining certification in the three ISO areas of quality, environmental and occupational health and safety management. This is one of the areas where extra resources have been used during the year. Another recurring point is the constant work to draw attention to the infrastructure on Djursland.
"Wherever we have the opportunity, we try to influence opinion leaders and politicians so that we can bring forward the construction of the 2+1 road to the Feldballe junction and the bypasses at Trustrup and Tirstrup. But if the infrastructure is to make sense and significantly improve safety, the A15 must be made into a 2+1 road all the way to Grenaa. Anything else makes no sense at all," says Henrik Carstensen, CEO, Port of Grenaa.
New Board of Directors
Port of Grenaa welcomes a new board member, Daniel Isak Dallerup, who is nominated by the Central Organization of the Trade Union Movement East Jutland.
At the inaugural meeting of the Board of Directors, which was held after the General Assembly, Bent Hansen was appointed to continue as Chairman and Laura Hay Uggla will also continue as Vice-Chairman.
In addition to the above mentioned, the board consists of: Anette Ruby Liebe, Benny Hammer, Jens Meilvang, Jess Abildskou and Lene S. Sørensen.
This is an opinion piece written by Henrik Carstensen, CEO Port of Grenaa and board member of Danish Ports. The article was published in Avisen Danmark on April 8, 2023.
The future is not heavy long-distance transportation by road, the future belongs to ports and the sea when it comes to transporting goods.
Danish ports are critical infrastructure and important for the country's economy and business. Ports play a central and important role in the trade and transportation of goods, and their efficiency and safety are crucial to the country's competitiveness. In addition, maritime transport is far less environmentally damaging than road transport.
But if ports are prevented from offering proper conditions, they will not be able to perform the logistics tasks that are the DNA of ports - and this will not be beneficial for the environment, business or employment. That is why we need to address some of the pressing challenges facing ports.
Challenge number one - Ports need deeper channels
The state-owned shipping lanes that ship traffic follows into Danish ports are in urgent need of deepening. The ships that call at the ports are now huge and carry all kinds of cargo, from wood chips, salt, scrap iron for recycling and the huge turbine parts used in the construction of offshore wind farms. The trend is for ships to keep getting bigger, because it's efficient and it's climate-friendly.
If the state shipping lanes are not deepened, Port of Grenaa among others, can look into a future where ships sail past us and find new ports with deeper and safer sailing conditions. There are plenty of foreign ports waiting in the wings, ready to overtake us. We cannot stand by and watch in silence.
Therefore, as the responsible port director, I am shouting the alarm so that the responsible politicians can act in time before it is too late. Because it is about development and it is about jobs. The infrastructure for the ports must be in place - in width and depth - also on the water and this is a political responsibility.
Challenge number two - Long processing times threaten green transition
There are examples of applications for the erection of wind turbines that have taken more than three years to process. Three (3) years of processing. This is quite unreasonable for all parties involved.
With the current ambitious plan for Denmark to achieve a 70% reduction in CO2 emissions by 2030 and be climate neutral by 2050, it is necessary that the planned offshore wind farms are realized as soon as possible. There is no time for long processing times - neither in the application phase nor subsequently in the appeal bodies.
If we are to have the slightest chance of getting through the climate and energy crisis, the processing times must be significantly reduced so that Denmark and Europe can free themselves from fossil fuels and become climate neutral in 2050. Fortunately, this has been realized by the European Commission, which is currently negotiating a proposal for common European rules on maximum processing times for green energy initiatives. We believe and hope that this will be negotiated, so that Europe can get started with the expansion of near- and offshore wind farms in the waters around us.
Get started - Danish ports are ready
Danish ports are scrambling to provide all those involved in the wind turbine industry with berths for storage, shipping, construction and maintenance of near- and offshore wind farms. We would love to help, but right now there is hesitation and everyone is waiting to see if the Danish wind adventure can continue. In the worst case scenario, it could turn into a long nose instead.
So, dear politicians. Get started, the Danish ports are ready - all that is missing are the permits to establish the wind farms, so that we can take a giant step even further away from the climate catastrophe and Russian gas and towards climate-friendly, green energy self-sufficiency.
Once again Port of Grenaa makes a positive impact. The port has been awarded the blue stamp in three important ISO standards and is thus in a top position to continue the positive development the port has been in since 2015. Now the port has paper that the quality is top in quality, environment and working environment. This is good for customers, the environment and, not least, for employees.
It was a satisfied QHSE manager at Port of Grenaa who achieved all three certifications. This followed two years of implementation of the three management systems in quality, environment and occupational health and safety. By becoming certified, Port of Grenaa gains a number of benefits. These include higher quality, increased efficiency, better risk management and more satisfied customers and employees.
Guarantee of quality
The run-up to ISO certification began in early 2021. At the time, Port of Grenaa had enjoyed record sales for several consecutive years, and had a natural desire to become ISO accredited. Natural because several of the customers were large national and international companies where the requirement would be to demonstrate quality and management in the areas of quality, environment and occupational health and safety if the collaboration was to continue. So it was natural to 'get on paper' that things were in order at the port.
"It wasn't that we weren't in control of our business. We were. But with a growing organisation, a lot more employees and a steadily increasing turnover, now was the time to get started," says Mette Klit, QHSE manager at Port of Grenaa about the choice of time to initiate the certification. She also emphasises that the three management systems are important tools, as they place demands on Port of Grenaa as an organisation and business partner.
"The requirements placed on us through the certifications are to ensure that we always perform at our best and always strive to set high standards for our norms, standards and values," Mette Klit - QHSE Manager, Port of Grenaa
Get a safer workplace
Henrik Carstensen, CEO of Port of Grenaa is also confident that the three certifications will benefit the port's customers and employees. "Several of our customers are among the market leaders in their field. For them it is a requirement that their partners are certified according to ISO standards in quality, environment and working environment. Therefore, it is of course important for Port of Grenaa that we have the certifications, so that we can retain our customers, but just as much that we can attract new ones," says Henrik Carstensen. He points out that it will also lead to a safer workplace, especially for the employees who move around the port areas. Those who load and unload the ships and operate the heavy machinery on a daily basis.
"Especially for the employees working at the port itself, it will mean a safer everyday life. That's because every little mistake or risk of mistake will be reported in a system so we can identify situations and places that could be potentially dangerous - and then do something about it in the form of an action plan," says Henrik Carstensen.
Having achieved the three ISO standards, Port of Grenaa will now move on to optimising and consolidating processes so that the organisation is ready for the next follow-up audit in 2024.
ISO 9001: This standard describes the requirements for a quality management system that helps organisations deliver products and services that meet customer needs and expectations.
ISO 14001: This standard describes the requirements for an environmental management system that helps organisations identify and reduce their environmental impacts and meet regulatory requirements.
ISO 45001: This standard describes the requirements for an occupational health and safety management system that helps organisations create a safe and healthy working environment for their employees and other stakeholders.