St. Catharines, Ontario, headquartered Algoma Central Corporation (TSX: ALC) and Donsö, Sweden, based Furetank have entered into a joint venture (JV) agreement to construct four dual-fuel ice class 1A 17,999 DWT climate friendly product tankers. The two companies will own 50% each of the joint venture, which is to be named FureBear.
The four product tankers have been designed by Furetank in collaboration with FKAB Marine Design and several onboard system suppliers, with energy efficiency at the forefront of the planning process.
The tankers will be constructed at China Merchants Jinling Shipyard in Yangzhou, China, with delivery expected between 2023 and 2025.
The FureBear vessels will be sisters to the Vinga series of eight vessels currently trading in the Gothia Tanker Alliance and will be enter into the alliance on delivery. They will be operated by Furetank out of Gothenburg, Sweden.
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 innovative features that reduce fuel and energy consumption, resulting in extensively lower emissions of CO2, sulphur oxide, nitrogen oxide and hazardous particles. They are also fully equipped for shore power.
Algoma says that the FureBear JV, with a leader in the Northern European intermediate ice-class product tanker segment, will advance its presence in international short sea shipping markets and strengthen its investment in long-term sustainable shipping solutions.
“This investment will enable us to continue on our strategic path to diversify geographically and into niche short sea markets,“ said Gregg Ruhl, president and CEO of Algoma Central Corporation. “Short sea shipping is our core DNA here at Algoma and these specialized, environmentally conscious vessels will fit naturally into our expanding global fleet. Furetank and Algoma share similar goals and values and this was especially important to us as we developed this partnership. I look forward to working together on our shared vision for providing safe, efficient and environmentally and economically sustainable transportation of petroleum products to our customers.”
“We are pleased to welcome aboard Algoma and combine our companies’ symbols to create the FureBear joint venture,” said Lars Höglund, CEO of Furetank. “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 and to continue our journey as a leader in the Northern European petroleum trade. These vessels will be top-performers in the market by offering efficient cargo operations, all while reducing our environmental footprint.”