U.S. delivery firm Overseas Shipholding Group introduced it’s going to improve all 4 vessels in its Alaskan Class fleet with new methanol-ready engines from MAN Energy Solutions.
The vessels Alaskan Explorer, Alaskan Frontier, Alaskan Legend and Alaskan Navigator, all approaching 20 years in age, will obtain important engine and operational enhancements, leading to environmental advantages in addition to extending their commercially helpful life, OSG stated.
The lifecycle engine upgrades contain a collection of technical and industrial enhancements, together with engine part replacements with newer, extra fuel-efficient fashions, resulting in decreased gas consumption and decrease greenhouse fuel emissions, in addition to set up of superior management programs and optimization applied sciences to permit crews to function the vessels in a extra environment friendly method, maximizing efficiency whereas lowering total environmental affect.
The vessels will have the ability to meet Carbon Intensity Indicator (CII) laws with out sacrificing operational capability of the vessels for years to come back, OSG stated.
The lifecycle engine improve (LCU) program is scheduled to start in early 2024 together with plans to reactivate the just lately acquired Alaskan Frontier. The remaining three vessel engine upgrades shall be performed concurrently with scheduled vessel drydocking durations by means of 2026, which can mark the completion of the mission.
“The decision to contract with MAN Energy Solutions for engine Life Cycle Upgrades on all four Alaska class tankers represents a major investment in the future of our company,” acknowledged Sam Norton, President and CEO of OSG. “When combined with previously announced commitments to reactivate the Alaskan Frontier, the aggregate investment we will be making into our Alaskan fleet over the next three years will be close to $100 million.”
Norton continued, “The benefits of this substantial investment will be multiple. We expect improvements in fuel oil consumption, which will result not only in substantial cost savings, but as importantly in an estimated annual reduction of over 20,000 metric tons of greenhouse gas emissions based on historical trading patterns for each of these vessels. OSG has set a target of achieving a 15% reduction in annual CO2 emissions by 2030 and this investment alone should account for roughly one-third of that target. In addition, the anticipated improved emissions attained from the engine upgrades should allow all our Alaskan class vessels to operate in their historical trading patterns while maintaining compliance with current Carbon Intensity Index (CII) regulations through at least 2035.”
“The Life Cycle Upgrade is our ‘Roadmap’ solution for the engine type 48/60 installed on the Alaskan Class,” stated Marcel Lodder, Strategic Sales Manager at MAN PrimeServ. “With the conversion, the roughly twenty-year-old engines of the Alaskan Fleet will not only profit from being ready for future fuels but are also reset to almost completely new condition in combination with today’s serial new build standards. We are looking forward to performing the conversions together with Alaskan Tanker Company and being part of this success story in decarbonization.”
Chris Merten, Chief Operating Officer of OSG’s wholly owned subsidiary Alaskan Tanker Company added, “These vessels were originally built with a 40 year design life. With Alaskan crude oil production expected to increase by as much as 250,000 barrels per day by the end of this decade, ensuring the extended operating life of these vessels in compliance with environmental regulations has been a top priority for us and our customers. The upgrade of these vessels’ main engines should allow that goal to be achieved over the next decade, adding years of CII compliance for these vessels to generate additional cashflows through 2035. Looking out over the longer term, the methanol fuel option that these upgrades provide allows possibilities for even longer-term operation should green methanol fuel availability emerge in the decade ahead.”
Concurrent with getting into into contracts with MAN Energy Solutions, OSG agreed to amend current charterparties for the Alaskan Navigator and Alaskan Legend. The amendments modify the phrases of the charterer’s current extension choices and supply for 5 further one-year extension choices for every vessel at agreed charges by means of 2035.
