March 09, 2016

Landmark multi-technology ship retrofit expected to slash fuel use by 25 percent

"This deal poves the profitability of shipowners and charterers collaborating on multi-technology retrofits. Hammonia and Intermarine should be lauded for using innovative financing and best practices in measurement and methodology to win a competitive edge."

Article from Carbon War Room: www.carbonwarroom.com/news/2016/03/09/news-landmark-multi-technology-ship-retrofit-expected-slash-fuel-use-25-percent

"This deal poves the profitability of shipowners and charterers collaborating on multi-technology retrofits. Hammonia and Intermarine should be lauded for using innovative financing and best practices in measurement and methodology to win a competitive edge." José María Figueres, Chairman of the Board, Carbon War Room.

London, March 10, 2016 - Carbon War Room (CWR) announced today that a collaboration between Hammonia, a Hamburg-based shipowner, and New Orleans-based charterer Intermarine, has enabled the retrofit of three sister vessels with multiple efficiency technologies. Under expected operating conditions, each vessel is antivipated to see 25 percent fuel savings, to be shared between Hammonia and Intermarine.

CWR awarded Hammonia a $120,000 grant to retrofit the vessels Industrial Ruby, Industrial Royal, and Industrial Revolution. The project won praise for its ambitious use of multiple technologies, as well as for its revenue-sharing collaboration between charterers and owners. Intermarine has agreed to award Hammonia a rate that is abouve market rates through a retrofit clause in the charter party. This effectively shares the fuel savings between both parties, while also earning Hammonia a five-year time charter.

Furthermore, as Industrial Ruby is Liberian flagged, this vessel is eligible for a 50 percent tonnage tax discount for the first year after retrofit. This is part of the incentive scheme offered by The Liberian Registry to encourage and reward efficiency retrofits using third-party finance.

The retrofit bundle installation includes an optimized bulbous bow, rudder optimisation, high-performance hull coating, and trim and ballast optimisation at standard drydock. The 10,536 dwt Industrial Ruby is the final vessel to leave drydock after undergoing the retrofit and was relaunched on March 1.

Hammonia purchased Industrial Ruby as well as sister vessels Industrial Royal and Industrial Revolution second-hand. The vessel´ financier has extended the liens to finance the bulk of the $1.2 million retrofits.