Vessel Shows 25% Bunker Reduction from Efficiency Retrofits

Friday March 11, 2016

Carbon War Room (CWR) Thursday in an emailed press release announced that a 25 percent fuel savings has been demonstrated by multiple efficiency technologies retrofitted on three sister vessels.

The results are said to have been demonstrated through a collaborative undertaking between Hamburg-based shipowner HAMMONIA Reederei GmbH & Co. KG (Hammonia) and New Orleans-based charterer Intermarine LLC (Intermarine).

The retrofit bundle, which includes an optimised bulbous bow, rudder optimisation, high-performance hull coating, and trim and ballast optimisation at standard drydock, is said to have been installed on the 10,536 DWT Hammonia-owned Industrial Ruby, Industrial Royal, and Industrial Revolution.

Industrial Ruby is said to be the final vessel of the three to leave drydock, having undergone the retrofit and been relaunched on March 1.

CWR says the financier of the vessels has extended the liens in order to support a majority of the $1.2 million retrofits.

"This deal proves the profitability of shipowners and charterers collaborating on multi-technology retrofits," said José María Figueres, Chairman of the Board for CWR.

"Hammonia and Intermarine should be lauded for using innovative financing and best practices in measurement and methodology to win a competitive edge."

For its part, CWR is said to have awarded Hammonia a $120,000 grant to support the vessels' retrofit, which was used to fit the three vessels with continuous monitoring software with the intention of measuring, verifying and publishing the ships' fuel and carbon savings - data which will be analysed by the independent third-party University College London (UCL) over a five year period.

Intermarine is said to have agreed to grant Hammonia an above-market rate via a retrofit clause in the charter party, resulting in shared fuel savings between both parties and earning Hammonia a five year time charter.

CWR says that it sees the deal as a model for the industry to glean "far greater savings, while creating win-win scenarios for both charterers and owners," a development that CWR says is especially pertinent given current market overcapacity.

In addition to fuel savings, the Liberian-flagged Industrial Ruby is said to be eligible for a 50 percent discount on tonnage tax for the first year after retrofit, part of a Liberian Registry incentive scheme that rewards efficiency retrofits using third-party finance.

In February, Ship & Bunker reported that CWR has launched a six-member Shipping Efficiency Advisory Board, that it says will lend industry insight and support CWR's mission to profitably decarbonise the international shipping industry.