Damen Shipyards Group has joined a partnership with Atal Solutions and other parties that will retrofit four bulk carriers for BAM Shipping. The project will see eight different proven technologies integrated to cut emissions.
Damen’s role is to provide the vessels with fuel-saving and emission reduction technologies. The technologies to be used are presented in the picture above. Following this, the bulk carriers are anticipated to consume at least twenty per cent less fuel and reduce up to 99 per cent greenhouse gases (GHG).
The increased efficiency paves the way for these and other existing vessels to sail in compliance with recent regulations such as the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (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 ten years.
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Financing the green transition
Damen is committed to the shipping transition and has set itself the goal of becoming the most sustainable maritime solutions provider in the world. This commitment is shared by Atal Solutions, as underscored by the company’s arrangement of the USD 123.7 million funding for this unprecedented project. Atal will provide a supplier’s credit amounting to USD 105.2 million, requiring vessel owners to provide just fifteen per cent equity, and having a ten-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 can be made in the shortest possible timeframe.
‘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,’ adds Rutger van Dam, business development manager at Damen. ‘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.’
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New standards for emission reduction
Atal Solutions’ founder and managing director Edwin Sieswerda: ‘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.’
He adds: ‘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.’
The project is currently being implemented and is expected to be realised by Q1 2025.
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