World News
Odfjell Targets 20 Percent Reduction in Bunker Consumption with New Technology
Odfjell SE says it is upgrading the propulsion system of 19 vessels with the aim of reducing their bunker consumption and emissions by up to 20 percent.
"The vessels will be equipped with new energy efficient propeller blades, rudder-bulb and will undergo technical upgrades of the main engine, turbo chargers and shaft generator," Odfjell said.
"The vessels will be amongst the most energy efficient chemical tankers in the world."
In addition to the 15 percent fuel savings achieved during model tests of 11 Kvaerner class vessels conducted at Norwegian Marine Technology Research Institute (Marintek), subsequent sea trials resulted in an overall efficiency gain of more than 20 percent.
Odjfell will also upgrade eight 40,000 dwt Poland class vessels, with the modifications intended to be complete by the end of 2017.
Dr. Kourosh Koushan, research manager at Marintek, calls the test results "exceptional" and says the upgraded vessels will achieve the highest score of A-plus on the RightShip energy rating.
Warwick Norman, CEO of RightShip, said that "This investment in vessel efficiency demonstrates Odfjell's leadership in environmental sustainability."
He added, "It is also a smart move from a business perspective, positioning Odfjell advantageously in the market."
This is presumably welcome news for Odfjell, which in May reported a first quarter 2015 loss of $32 million, and total year costs of $57 million as a result of bunker hedging deals put in place the year prior.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 516.50 | 2.50 | 598.00 | 0.50 |
| Rotterdam | 464.50 | 5.50 | 612.50 | 6.00 |
| Houston | 461.50 | 1.50 | 610.50 | 1.00 |
| Fujairah | 504.00 | 4.50 | 716.50 | 1.00 |
| Global 20 Ports Average | 532.00 | 1.00 | 708.00 | 1.00 |
| Global 4 Ports Average | 486.50 | 1.00 | 634.50 | 1.50 |
| Global Average Bunker Price | 570.50 | 1.00 | 755.50 | 2.00 |
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