Marine Link
Thursday, July 18, 2024

Damen, Atal Solutions Join Forces for Green Refit of BAM Shipping’s Four Bulk Carriers

Maritime Activity Reports, Inc.

June 5, 2024

(Credit: Damen)

(Credit: Damen)

Damen Shipyards has partnered up with Atal Solutions and other parties to retrofit four bulk carriers for Bam Shipping with fuel-saving and emission reduction technologies.

The industry partners will integrate eight different proven technologies, which will result in bulk carriers consuming at least 20% less fuel and reducing up to 99% greenhouse gases (GHG).

The increased efficiency paves the way for these and other existing vessels to sail in compliance with recent regulations such as the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII).

Additionally, the reduced OPEX of the vessels is expected to yield a rapid return on investment. As a further benefit, the overhaul is anticipated to increase the vessel’s lifecycle by further 10 years, Damen said.

Damen is committed to the shipping transition and has set itself the goal of becoming the most sustainable maritime solutions provider in the world. This commitment is shared by Atal Solutions, as underscored by the company’s arrangement of $123.7 million funding for this project.

Atal will provide a supplier’s credit amounting to $105.2 million, requiring vessel owners to provide just 15% equity, and having a 10-year repayment period with competitive interest rates.

The approach enables considerable emissions reduction with conventional fuels. With no requirement to await the maturation of emerging technologies and/or relevant fuel infrastructure, a positive environmental impact can be made in the shortest possible timeframe, according to Damen.

The project is currently being implemented and is expected to be realized by the first quarter of 2025.

"Currently, we are working on four vessels, but we anticipate many similar projects will follow upon the successful implementation of this initiative. Additionally, we expect increased support from the financial sector as the positive impact of our integrated solution becomes evident.

“Atal's ongoing collaboration with Damen and other industry players helps them set a new standard for fuel-saving and emission-reduction solutions,” said Edwin Sieswerda, Atal Solutions’ Founder and Managing Director.

“We are proud to team up with Atal Solutions to offer a robust solution for financing large projects such as this one on behalf of BAM Shipping, while mitigating risk and keeping sustainability at the forefront.

“Our mutual goal is to accelerate the transition to more sustainable shipping while ensuring that the business case and revenue generation remain competitive. The financing structure of this project is a breakthrough, enabling significant advancements in sustainable shipping with a commercially viable model,” added Rutger van Dam, Business Development Manager at Damen.