Damen Shipyards Group is partnering with Atal Solutions and other parties in a move that is expected to deliver a significant boost to the maritime green transition.
For end customer BAM Shipping, the project partners will undertake the retrofit of four bulk carriers by integrating eight different proven technologies (see illustration). Damen’s role is to provide the vessels with fuel-saving and emission reduction technologies. Following this, the bulk carriers are anticipated to consume at least 20% less fuel and reduce GHG emissions by up to 99%.
The increased efficiency paves the way for these and other existing vessels to sail in compliance with recent regulations such as EEXI and CII. Additionally, the reduced Opex of the vessels is expected to yield a rapid return on investment. As a further benefit, the overhaul is anticipated to increase the vessel’s lifecycle by a further 10 years.
Damen says is committed to the shipping transition and has set itself the goal of becoming the most sustainable maritime solutions provider. This commitment is shared by Atal Solutions, as underscored by the company’s arrangement of the US$ 123.7m funding for this project. Atal will provide a supplier’s credit amounting to US$ 105.2m, requiring vessel owners to provide just 15% equity, and having a 10-year repayment period with competitive interest rates.
The approach enables considerable emissions reduction with conventional fuels. With no requirement to await the maturation of emerging technologies and/or relevant fuel infrastructure, a positive environmental impact is antcipaed in the shortest possible timeframe.
Atal Solutions’ Founder and MD Edwin Sieswerda said: “We look at real impactful solutions – easy and fast to implement, based on proven technologies – and avoid idealistic solutions. If we truly believe in a project, we make it happen and don’t stop until we do. Currently, we are working on four vessels, but we anticipate many similar projects will follow upon the successful implementation of this initiative. Additionally, we expect increased support from the financial sector as the positive impact of our integrated solution becomes evident. Atal’s ongoing collaboration with Damen and other industry players helps them set a new standard for fuel-saving and emission-reduction solutions.”
Rutger van Dam, Damen Business Development Manager said: “We are proud to team up with Atal Solutions to offer a robust solution for financing large projects such as this one on behalf of BAM Shipping, while mitigating risk and keeping sustainability at the forefront. Embracing Atal Solutions’ innovative vision and capabilities, we are confident that this collaboration provides the ideal solutions to meet the current demand for cleaner shipping and fuel saving technologies. Our mutual goal is to accelerate the transition to more sustainable shipping while ensuring that the business case and revenue generation remain competitive. The financing structure of this project is a breakthrough, enabling significant advancements in sustainable shipping with a commercially viable model.”
The project is currently being implemented and is expected to be realised by Q1 2025.
Image: BAM Shipping green refit (source: Damen Shipyards)
