Damen to supply emission-reduction technologies for bulker retrofit project

Home Green Marine Damen to supply emission-reduction technologies for bulker retrofit project

June 5, 2024,
by

Fatima Bahtić

Dutch shipbuilder Damen Shipyards has received a contract to provide fuel-saving and emission-reduction technologies for bulker retrofit project.

Damen

As informed, Damen, together with project partners Atal Solutions and BAM Shipping, will undertake the retrofit of four bulk carriers by integrating eight different technologies. Meanwhile, Atal will provide a supplier’s credit amounting to $105.2 million, requiring vessel owners to provide 15% equity.

Following this, the bulk carriers are anticipated to consume at least 20% less fuel and reduce up to 99% of greenhouse gas (GHG) emissions, the partners highlighted.

According to Damen, the increased efficiency paves the way for these and other existing vessels to sail in compliance with recent regulations such as the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII).

Additionally, the reduced OPEX of the vessels is expected to yield a rapid return on investment.

As a further benefit, the overhaul is anticipated to increase the vessel’s lifecycle by a further ten years.

The project is currently being implemented and is expected to be realized by Q1 2025.

“Currently, we are working on four vessels, but we anticipate many similar projects will follow upon the successful implementation of this initiative. Additionally, we expect increased support from the financial sector as the positive impact of our integrated solution becomes evident. Atal’s ongoing collaboration with Damen and other industry players helps them set a new standard for fuel-saving and emission-reduction solutions,” Atal Solutions’ Founder and Managing Director Edwin Sieswerda said.

“Our mutual goal is to accelerate the transition to more sustainable shipping while ensuring that the business case and revenue generation remain competitive. The financing structure of this project is a breakthrough, enabling significant advancements in sustainable shipping with a commercially viable model,” Rutger van Dam, Business Development Manager at Damen stated.

To remind, Damen recently entered into a cooperation with French shipping heavyweight CMA CGM that will result in around ten of the latter’s vessels receiving significant modifications.