Carbon War Room (CWR) have issued a request for proposals (RFP) to shipowners or charterers for a grant that will help finance a single-vessel retrofit with a bundle of proven technologies. The retrofit will result in a minimum fuel savings of 10–15%.
Up to US$ 200,000 will be granted by CWR to fund the installation of continuous monitoring equipment. CWR will also commission independent, third-party analysis of the collected data, which will verify the benefits of the multi-technology retrofit and provide a ‘proof of concept’ for the entire industry.
CWR analysis of over 100 existing ships has shown that vessels can achieve efficiency gains of at least 10–15% by retrofitting with a bundle of proven energy efficiency technologies. These include advanced hull coatings, ducts, fins and new propellers. This builds on a previous report by CWR,Hidden Treasure – Financial Models for Shipping Retrofits, which explored a viable financing model whereby repayment is tied directly to fuel savings.
The grant will cover a portion of the total retrofit bundle, with at least 50% of the remaining technology costs to be financed by a third party. This project is funded by the Dutch Postcode Lottery, which recently awarded €1,000,000 to Rocky Mountain Institute and CWR to expand their efforts in the shipping industry.
Leading industry banks, including HSH Nordbank and KfW IPEX Bank, have confirmed that more efficient vessels enjoy better marketability, greater revenue potential, and a more attractive risk profile for financiers and shipowners. In consequence, the technology bundle will yield economic benefits in the long-term too, positioning the vessel for financial gains beyond the immediate US$200,000 award.
“Now is the time for ambitious shipowners and charterers to take advantage of the multiple technologies available to make their ships more efficient, and save money. As we see an increasing number of capital providers offering finance for these projects, never before has there been so much confidence in efficiency technologies and the economic benefits they yield,”commented José María Figueres, Chair of the Board, Rocky Mountain Institute and Carbon War Room.
Owners or charterers that are interested in the project should download the full application particulars from here and submit all necessary information via email to James Mitchell at Carbon War Room (jmitchell@carbonwarroom.com) by October 19, 2015.
