27th September 2016
Union Maritime secures industry’s first ‘pay as you clean’ emissions control deal
Client news
Union 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.
Ends
Notes to editors
Union Maritime Limited (UML) is one of the largest UK-based independent ship owner/operators with a fleet of 31 product/chemical tankers and two bulk carriers. Operating globally but with a developed expertise and focus on West Africa, UML enjoys an established reputation for carrying cargoes safely and efficiently whilst delivering clear and honest information to its clients and stakeholders in complex trading environments.
The UML fleet continues to grow and, to date, has moved millions of tonnes of bulk commodities for global, blue-chip oil companies, refiners and traders. Established in 2006 from the union of two successful commodities and industrial businesses based in Nigeria, UML aspires to become the logistics partner of choice for the world’s leading commodity traders.
For further information, contact:
Mike Elsom
Navigate PR Ltd (London)
+44 (0)20 3326 8464 / +44 (0)7968 196077
melsom@navigatepr.com