(Article from "Trade Winds")
German owner introduced improvements aimed to 25% fuel savings in cooperation with charterer Intermarine.
March 10th, 2016 09:29 GMT by Paul Berrill – Three German general cargoships have been retroﬁtted with a package of efﬁciency improvements that are expected to produce a massive 25% fuel savings.
A collaboration between Hamburg-based owner Hammonia, charterer Intermarine and the vessels’ ﬁnancier has allowed a revenue sharing retroﬁt that will make the 10,536-dwt sisterships far more environmentally friendly.
The revenue-sharing collaboration between charterers and owners sees Intermarine award Hammonia a charter rate signiﬁcantly above market levels for the next ﬁve years.
And the vessels’ ﬁnancier has extended the liens to ﬁnance the bulk of the $1.2m retroﬁts.
The project was overseen by the business-oriented environmental organisation the Carbon War Room (CWR) which awarded Hammonia a $120,000 grant to pay for monitoring equipment used in the retroﬁt of the vessels Industrial Ruby, Industrial Royal, and Industrial Revolution.
A number of improvements such as high quality hull coating, rudder and trim optimisation and new bulbous bow were ﬁtted to the ships as they underwent drydocking.
"This deal showcases how to overcome the split incentive between owners and charterers, and delivers hard proof of the fuel savings from deep retroﬁts,” said Galen Hon, CWR shipping operations manager.
CWR will measure, verify, and publicise the fuel and carbon savings.
The data will be analysed by independent third-party, the University College London (UCL). Hon says the project aims to “increase industry conﬁdence in the proﬁtability of retroﬁts”.
Until now only one in 10 companies has aimed for savings of more than 10% from retroﬁt projects, according to DNVGL.The project is funded by the Dutch Postcode Lottery, which recently granted €1m ($1.09m) to CWR and Rocky Mountain Institute (RMI) to expand their efforts in the shipping industry.
The Industrial Ruby is also eligible for a 50% tonnage tax discount for the ﬁrst year after retroﬁt under a scheme run by the Liberian Registry.