Germany Commences LNG-Powered Ship Construction

| Germany, Frankfurt am Main

LNG-powered LNG tanker vessel design

KfW IPEX-Bank, international project and export finance lender, is financing the construction of the first completely gas-powered and thereby low-emission ship in Germany. The 15,600 cubic metre LNG tanker will be used to decentrally supply liquefied natural gas (LNG) to energy intensive industries and LNG tank facilities in the North Sea and Baltic Sea as well as to supply the towngas network in Stockholm, the Swedish capital. With the help of an innovative ship propulsion system installed for the first time in Germany, the vessel will power the engine from the boil-off gas from its cargo hold.

The Dutch shipping company Anthony Veder Group N.V. ordered the ship from Meyer Werft/Papenburg and already has concluded a long-term charter contract with a Norwegian energy company. The vessel will be built at the Neptun shipyard in Rostock/Warnemünde, which belongs to the Meyer group of companies since 1997. KfW IPEX-Bank provided and structured the financing.

“I am pleased that we can participate in realising such a future-oriented project” said Christian K. Murach, Member of the Management Board of KfW IPEX-Bank at the contract signing. “Here we are developing the environmentally-friendly ‘green’ shipping of the future. This makes not only ecologic, but also economic sense. Moreover, the completion in Rostock will contribute to supporting the shipyards in eastern Germany, in particular in a viable segment that has a long-term, promising future.”

After its delivery at the end of 2012 the ship will operate in Scandinavia and in the Baltic Sea, where in the coming years the emission regulations will be further tightened. The Baltic Sea is one of the most densely sailed seas of the world where, starting in 2015, the strictest regulations of MARPOL Annex VI of the International Maritime Organisation (IMO) will apply. The limits applicable in Sulphur Emission Control Areas (SECAs) such as the Baltic Sea were set at 1.00% from 1 July 2010 (previously 1.50 %), and will be further reduced to 0.10 %, effective from 1 January 2015.

Shipping in these regions will then only be possible with gas-powered engines or emission-reducing filters.

(This article primarily compiled using information from a KfW PEX-Bank press release)

Update 29 August 2012: The ship, named “Coral Energy”, will be driven by a Wärtsilä main engine capable of LNG and heavy fuel oil operation. No further engine details have been released. 13,800gt and 8,000dwt. Hull construction completed.

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