Furetank and Algoma order 4 dual-fuel product tankers for their JV
Swedish Furetank AB and Canadian Algoma Central Corporation are entering into a joint venture agreement to build four dual-fuel product tankers intended to trade in Northern Europe.
Each company will own 50% of the joint venture, which will be named FureBear.
The vessels 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 operated by Furetank out of Gothenburg, Sweden.
The four dual-fuel ice class 1A 17,999 DWT product tankers are specially designed by Furetank in collaboration with FKAB Marine Design and several onboard system suppliers.
The FureBear vessels will be sisters to the Vinga Series of eight vessels currently trading in the Gothia Tanker Alliance. 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 features for reduction of fuel and energy consumption, resulting in lower emissions of CO2, sulphur oxide, nitrogen oxide and hazardous particles. They are also fully equipped for shore power.
Algoma said that building on Furetank’s experience in the Northern European intermediate ice-class product tanker segment the joint venture would help advance Algoma’s presence in international short sea shipping markets.
“This investment will enable us to continue on our strategic path to diversify geographically and into niche short sea markets. Short sea shipping is our core DNA here at Algoma and these specialized, environmentally conscious vessels will fit naturally into our expanding global fleet,” said Gregg Ruhl, President and CEO of Algoma Central Corporation.
“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. These vessels will be top-performers in the market by offering efficient cargo operations all while reducing our environmental footprint,” said Lars Höglund, CEO of Furetank.
The move is being announced on the back of Furetank’s latest order for a dual-fuel tanker, which brought its total to 11 vessels in the Vinga series.
China Merchants Jinling Shipyard was hired for the job, with the delivery scheduled for July 2024.
Furetank said that the agreement with the shipyard also includes an option for further vessels.