JULY 20, 2015 — Lloyd’s Register North America, Inc. (LR) has teamed with Penn Oak Energy Corp., Scottsdale, AZ, to help companies raise the capital needed to retrofit to LNG fueling and to mitigate the associated technical risks.
"LNG as a fuel has emerged as one of the most considered choices for a new generation of vessels," say LR's Marine Business Development Manager, Rafa Riva. "The infrastructure to support this new class of ships has started to mature, and we have seen great strides in companies willing to convert their existing ships to this new fuel or constructing new ships in the U.S. Emission Control Areas. Our relationship with Penn Oak Energy will help provide the private equity to shipowners to undertake these ambitious projects, and assist those shipbuilders that the U.S. will need to expand this growing demand."
Penn Oak Energy is a developer of LNG fuel solutions for industrial clients. The company specializes in turnkey solutions that take into consideration technology, natural gas liquefaction and supply, as well as logistics and financial considerations. This approach to project finance allows Penn Oak to apply its expertise to the unique financial structuring of LNG conversions for the maritime industry. The value that Penn Oak brings to shipowners and their fleets is through fuel-procurement agreements that can spread the cost of the LNG conversions and the upfront capital requirements for these conversions over the life of the project.
"The reason Penn Oak Energy chose to partner with Lloyd’s Register after doing a thorough review on other class societies throughout the maritime industry was that Lloyd’s Register was the most experienced in LNG conversions and transport vessels," said Philip Parker, head of business development for Penn Oak Energy. "Working with Lloyd’s Register and various shipyard owners throughout North America, Penn Oak Energy has been able to sign up exclusive relationships with various shipbuilders to bring their yards up to spec on certification, safety and standards required to convert ships to dual fuel solutions."