Press Release: Maritime clean technology company Silverstream Technologies and Chinese shipyard group COSCO Shipping Heavy Industry Co. Ltd (CHI) have signed a high-level memorandum of understanding (MOU) which will explore opportunities to install the Silverstream® System in CHI shipyards.
The MOU will foster a deeper level of collaboration between the two organisations and will enable Silverstream to assess how its technology could be licensed to fit within CHI’s technology portfolio. The agreement will also enable Silverstream to investigate additional options for the fabrication and supply of components of the Silverstream® System in China and the Asia-Pacific region, and it directly supports the company’s strategy of direct engagement with Chinese shipyards.
CHI is headquartered in Shanghai and operates nine shipyards – four for newbuilds and five for ship repairs. It ranks second in China for newbuild market share volumes and equal first in the repair/retrofits market. CHI operates yards for shipowners based around the world, including for its several sister COSCO Shipping companies.
Noah Silberschmidt, Founder & CEO, Silverstream Technologies, commented: “We are delighted to sign this MOU with CHI, which will enable us to work with the yard to find opportunities to install the Silverstream® System on ships built and repaired across its portfolio. Our established technology is fast becoming a standard selection on newbuild vessels and a leading retrofit option to improve vessel efficiency. In CHI, we have found another strong partner to help us continue to work towards this target. We look forward to a long-lasting and mutually beneficial relationship.”
Xiao Zijian, Commercial Director of CHQ, COSCO Shipping Heavy Industry, commented: “We are in a new era of transformation and development of the shipping industry. In order to meet shipowners’ needs to upgrade the efficiency of their fleets, we pay close attention to the world’s leading energy-saving clean technologies and marine products. We are therefore very pleased to establish the MOU with Silverstream Technologies, the leading supplier of hull air lubrication systems. Through the localisation of the supply chain and further installations of Silverstream’s technology, carried out in Chinese yards, we can play a complementary role in each other’s businesses and jointly provide high-quality and cost-effective vessel efficiency solutions to shipowners worldwide.”
In 2023, ship operators have submitted baseline performance statistics for the International Maritime Organization’s Carbon Intensity Indicator (IMO CII) regulations. Ships will receive the first vessel efficiency ratings within the CII ranking framework in 2024. Additionally, CO2 emissions from ships above 5,000 GT and transporting cargo or passengers for commercial purposes will be included in the European Union Emissions Trading System (EU ETS) for the first time from 1 January 2024. With these new regulatory drivers becoming more impactful on vessel operations, the need for improved vessel efficiency, and therefore the need for adopting energy efficiency technologies, is only set to increase.
Silverstream is already meeting this increased demand for efficiency. As of August 2023, 179 vessels are contracted to have the Silverstream® System installed across all shipping segments, with 44 of those ships already in service with the system onboard. Silverstream is realistically targeting 500 orders by 2025.
Header image: COSCO Shipping Heavy Industry Co. Ltd Shipyard
