Algoma and Furetank enter into joint venture agreement to construct four climate friendly dual-fuel product tankers to trade in Northern Europe
Algoma Central Corporation (TSX: ALC) on Tuesday (Aug16) announced that it has entered into a joint venture agreement to construct four dual-fuel ice class 1A 17,999 DWT climate friendly product tankers with Furetank AB (“Furetank”) of Sweden. Algoma will own 50% of the joint venture, which is to be named FureBear. This joint venture, with a leader in the Northern European intermediate ice-class product tanker segment, will advance Algoma’s presence in international short sea shipping markets and strengthen the Company’s investment in long-term sustainable shipping solutions.
“This investment will enable us to continue on our strategic path to diversify geographically and into niche short sea markets,“ said Gregg Ruhl, President and CEO of Algoma Central Corporation.
“Short sea shipping is our core DNA here at Algoma and these specialized, environmentally conscious vessels will fit naturally into our expanding global fleet. Furetank and Algoma share similar goals and values and this was especially important to us as we developed this partnership. I look forward to working together on our shared vision for providing safe, efficient and environmentally and economically sustainable transportation of petroleum products to our customers,” concluded Mr. Ruhl.
“We are pleased to welcome aboard Algoma and combine our companies’ symbols to create the FureBear joint venture,” said Lars Höglund, CEO of Furetank. “Furetank has deep roots in the shipping industry and a rich family history dating back to the 17th century, but our focus is aimed forward towards the goal of sustainable shipping. Together with Algoma’s similar narrative, I look forward to our collaboration and to continue our journey as a leader in the Northern European petroleum trade. These vessels will be top-performers in the market by offering efficient cargo operations all while reducing our environmental footprint,” concluded Mr. Höglund.
The tankers will be constructed at China Merchants Jinling Shipyard in Yangzhou, China, with delivery expected between 2023 and 2025. Upon completion, all four vessels will be entered into the Gothia Tanker Alliance, and will be operated by Furetank out of Gothenburg, Sweden. Each vessel has been specially designed by Furetank in collaboration with FKAB Marine Design and several onboard system suppliers with energy efficiency at the forefront of the planning process. The four FureBear vessels will be sisters to the eight Vinga-Series vessels currently trading in the Gothia Tanker Alliance which have proven to be top-performing tanker assets globally when it comes to energy efficiency and climate footprint.
The Vinga sisters all have dual-fuel capability and run on LNG/LBG or gasoil. 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. They are also fully equipped for shore power.