ST. CATHARINES, Ontario--(BUSINESS WIRE)--Sep 14, 2023--
Algoma Central Corporation (“Algoma”) (TSX: ALC), today announced it has expanded its investment in the FureBear joint venture with two additional vessel orders, bringing the total newbuild order to ten intermediate product tankers to trade in Northern Europe with their partner Furetank AB (“Furetank”) of Sweden. The two companies continue to position FureBear to increase fleet capacity to expand into new markets and meet future demand for biofuels transportation.
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Algoma and Furetank co-order two additional newbuilds (Photo: Business Wire)
The new order for Vinga series vessels grows the FureBear joint venture (”JV”) to a total of ten ships under construction, with the first vessel slated for delivery in the first quarter of 2024. Several trends in the market have fueled the companies’ decision to extend their fast-growing joint venture.
“We see the upcoming phasing out of older tonnage in the market far exceeding the amount of newbuildings underway. Since we launched the Vinga series, no other vessels have been introduced that exceed their environmental performance. This encourages us to expand the series, improving our customer service, while continuously developing and refining the emission-saving technology on board,” says Lars Höglund, CEO of Furetank.
Another important factor supporting the rapid JV expansion is the growing demand for biofuels and renewable feedstocks in the European trade. This type of demand benefits modern, intermediate size tankers designed for efficient cargo handling and tank preparation. Customers are becoming more environmentally conscious and placing greater importance on reducing the climate footprint of their entire supply chain, including transportation.
“The closer we get to the delivery of our first FureBear newbuild, the more confident we are that our JV with Furetank will yield superior long-term results. We see a need for more Vinga tankers to ensure that we can support customer demand into the coming years and even decades, and with a best-in-class environmentally friendly design that will stand the test of time,” says Gregg Ruhl, President and CEO of Algoma Central Corporation.
With the first generation of Vinga vessels entering the market in 2018, Furetank has confirmed the design and technology is robust and efficient.
“The vessels in service have been very well received in our market and have proven to function far beyond our expectations. The first ship has been operating for five years, the main engine running for 25,000 hours and not missing a single day in service because of technical issues. With that in mind, it is amazing to have found a business partner like Algoma who wants to join forces, place the investments, and continue this journey with us,” says Lars Höglund.
“Our aspiration is to grow FureBear only as large as it needs to be to meet the market demand of our customers. This is not an asset play; it is a customer service play, which has always been at the heart of what we do at Algoma and now with our partners,” concludes Mr. Ruhl.
The two ships will be constructed at China Merchants Jinling Shipyard in Yangzhou, China, with delivery expected in second and third quarters of 2026. The two new orders bring the Vinga vessel series to a total of 19 ships. Construction on the first FureBear vessel is on schedule for its 2024 delivery. All ten FureBear vessels will be entered into the Gothia Tanker Alliance and operated by Furetank out of Gothenburg, Sweden.
About the Vinga vessel series
The Vinga ships are ice class 1A 17,999 DWT product tankers designed by Furetank together with FKAB Marine Design. They all have dual-fuel capability, run on LNG/LBG or gasoil and are fully equipped for shore power. They are designed with a battery hybrid solution and several innovative features that reduce fuel and energy consumption, resulting in extensively lower emissions of CO2, sulphur oxide, nitrogen oxide and hazardous particles. The ships have scored the best Energy Efficiency Design Index or EEDI value in their segment globally, meaning that they are the most energy efficient vessels according to the International Maritime Organization (IMO).
About Algoma Central Corporation
Algoma Central Corporation is a global provider of marine transportation that owns and operates dry and liquid bulk carriers, serving markets throughout the Great Lakes St. Lawrence Seaway and internationally. Algoma is aiming to reach a carbon emissions reduction target of 40% by 2030 and net zero by 2050 across all business units with fuel efficient vessels, innovative technology, and alternate fuels. Algoma truly is Your Marine Carrier of Choice™. Learn more at algonet.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20230914109807/en/
CONTACT: Media
Gregg A. Ruhl
Algoma Central Corporation
President & CEO
905-687-7890Peter D. Winkley, CPA, CA
Algoma Central Corporation
EVP & Chief Financial Officer
905-687-7897
KEYWORD: IRELAND SWEDEN UNITED KINGDOM CANADA NORTH AMERICA EUROPE
INDUSTRY KEYWORD: GREEN TECHNOLOGY ENVIRONMENT MARITIME TRANSPORT SUSTAINABILITY
SOURCE: Algoma Central Corporation
Copyright Business Wire 2023.
PUB: 09/14/2023 07:00 AM/DISC: 09/14/2023 06:59 AM
http://www.businesswire.com/news/home/20230914109807/en
