This agreement is claimed to be the first of its kind and was made with Pacific Green Technologies Marine (PGTM).
The arrangement involves PGTM fitting its patented ENVI-Marine emissions control system (scrubber) costing almost $2 mill free of charge to UML’s 13,000 dwt chemical tanker ‘Westminster’ in the first quarter of 2017.
The system will be fitted to the vessel’s main engine where it will remove sulphur dioxide from the exhaust gas emissions to a level that meets SECA requirements. By going down this road, it allows the UML vessel to continue to burn the lower cost heavy fuel oil within the SECA (instead of switching to the higher cost low sulphur fuel), which will generate savings of around $2,700 per day when operating in a SECA.
Under this agreement, UML guarantees to operate the vessel for a minimum of 145 days each year in SECAs for its duration, thereby generating the daily saving.
UML will then pay the full cost savings generated to PGTM until the company has received $1,995,000 - the cost of the scrubber.
Assuming this arrangement is successful, UML has agreed to purchase up to a further 10 systems from PGTM.
Laurent Cadji, UML managing director, said; “Union Maritime takes its environmental responsibilities extremely seriously and we are determined to comply with all current and future controls on vessel emissions. At UML, we are always seeking new and innovative ways of operating and this arrangement with PGTM offers a smart solution to complying with the requirements of operating within the SECA regions. We look forward to working closely with PGTM in the future.”
Neil Carmichael, PGT CEO and chairman of Pacific Green Technologies Marine, commented: “We are delighted to be working with UML and this deal represents a substantial milestone for PGTM’s growth strategy. We are confident that we can deliver substantial long-term savings for the company.”