Union Maritime secures industry’s first ‘pay as you clean’ emissions control dealUnion Maritime Ltd (UML) – one of the UK’s largest independent ship owner/operators has secured an innovative deal to pay for an emissions control system through the cost savings it delivers.
This agreement is the very first of its kind and has been made with Pacific Green Technologies Marine Ltd (PGTM).
The arrangement involves PGTM fitting its ENVI-MarineTM emissions control system (scrubber) worth US$1,995,000 free of charge to Union Maritime’s 13,000dwt 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 the Sulphur Emissions Control Areas (SECAs) requirements. Doing this 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) to generate savings of around US$2,700 each day (when operating in a SECA).
Under the unique energy management agreement, UML guarantees to operate the vessel for a minimum of 145 days each year in SECAs for the duration of the agreement, thereby generating this daily saving.
UML will then pay the full cost savings that the system generates to PGTM until PGTM has received a total of US$1,995,000.
Assuming this arrangement is successful, UML has agreed to purchase up to a further ten systems from PGTM.
Laurent Cadji, Managing Director of Union Maritime Limited 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, Chief Executive of PGT and Chairman of Pacific Green Technologies Marine Ltd, 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.”
The SECA are various geographical locations around the world that limit the airborne sulphur emissions from ships. They currently include the Baltic Sea, North Sea, the North America ECA which includes most of the US and Canadian coastline and the US Caribbean. Any vessel operating in any of these waters must comply with these emissions restrictions.