Euronav partnering with Hyundai Heavy, LR and DNV to accelerate development of dual-fuel ammonia-fitted tankers
Crude oil tanker company Euronav NV announced a Joint Development Program (JDP) with the largest shipbuilder in the world, Hyundai Heavy Industries (HHI) and classification societies Lloyd’s Register and DNV, to help accelerate the development of dual fuel Ammonia (NH3) fitted VLCC and Suezmax vessels. The initial term of the JDP will be three years.
Shipping is entering an era of rapid technological developments and increasing environmental efforts demanding strong stewardship. Working with key partners toward the safe transport and commercialization of new technologies will be instrumental in delivering benefits for the wider marine industry. This partnership will accelerate the development and adoption of ammonia as one of the key solutions for the shipping sector.—Hugo de Stoop, CEO of Euronav
Since the beginning of the year, Euronav has invested significantly in its fleet. The company has acquired 2 Suezmaxes through resale of contracts and has taken over an early berth from owners unable to execute the contracts for the construction of two VLCCs. Euronav has entered into new contracts for the building of 3 Suezmaxes and that is has lifted the option to build a third VLCC as per its announcement on 22 April 2021.
All these newbuildings will be delivered in a staggered timing, enabling all parties involved to make concrete progress towards the development of ammonia-fitted tankers.
Every vessel ordered is part of Euronav’s fleet rejuvenation program and is already outperforming other existing vessels in terms of fuel consumption and emissions—in particular the older vessels that will be phased out of the fleet because of their age profile.
In addition, the vessels will feature a gradual and increasing degree of readiness to be converted into dual-fuel fully-fitted ammonia ships at a later stage, while retaining the possibility to convert them into dual-fuel LNG vessels if it would make more commercial sense.
The three firm Suezmaxes were contracted for a total cost of US$199.2 million (US$66.4 million each). The vessels will be delivered in the third quarter of 2023 and the first quarter of 2024. Delivery for the lifted option VLCC will be the second quarter of 2023.
Euronav will meet the financing of this acquisition with existing liquidity and asset-backed debt capacity.
In today’s fast changing and volatile environment, Euronav states it is important to remain flexible and at the same time contribute to the global effort of reducing greenhouse gas emissions which is key to its own economic sustainability.
Euronav’s owned and operated fleet consists of 2 V-Plus vessels, 48 VLCCs (three to be delivered), 30 Suezmaxes (of which one is in a joint venture, two vessels that are time chartered in and five vessels to be delivered) and 2 FSO vessels (both owned in 50%-50% joint venture).