JANUARY 12, 2015 — Horizon Lines, Inc. (OTCQB: HRZL) says it has entered into a supply agreement with Alfa Laval Aalborg Nijmegen BV for design and procurement of PureSox 2.0 exhaust gas cleaning systems (scrubbers) for is three D7-class vessels that operate in the Alaska trade.
The multiple inlet hybrid system will clean the exhaust gas from the main engine as well as the main generators, and is the first system of its kind for a Jones Act container vessel. Horizon expects to incur a total of approximately $18.0 million of capital spending in connection with the EGCS for the three vessels.
Installation of the first system is planned to begin on the Horizon Kodiak in September 2015, and completion of the project is expected by December 31, 2016.
Meantime, Horizon has received a conditional waiver from the Coast Guard and EPA allowing it to operate the three D7 ships in the North American ECA on low -sulfur heavy fuel while it pursues installation of the scrubbers.
Horizon says that the EGCS represents a significant investment and will be developed and installed in close coordination with Alfa Laval, the American Bureau of Shipping, and the U.S. regulatory agencies.
Horizon says it "values the partnership with the EPA and the USCG in supporting the advancement of this exhaust gas cleaning systems project, and looks forward to sharing the knowledge and experience gained during the evolution of this project with the maritime industry."
Alfa-Laval says that the advantages of PureSOx 2.0 begin with getting the scrubber on board. The scrubber diameter is 15% smaller than previous versions, which reduces the likelihood that cargo or passenger space will be affected. The control system is a full 50% smaller. In addition, the water cleaning unit for closed-loop mode is even more modular, with three separate sections that can now be flexibly placed.