(Article from "Trade Winds")

German owner introduced improvements aimed to 25% fuel savings in cooperation with charterer Intermarine.

March 10th, 2016 09:29 GMT by Paul Berrill – Three German general cargoships have been retrofitted with a package of efficiency improvements that are expected to produce a massive 25% fuel savings.

A collaboration between Hamburg-based owner Hammonia, charterer Intermarine and the vessels’ financier has allowed a revenue sharing retrofit that will make the 10,536-dwt sisterships far more environmentally friendly.

The revenue-sharing collaboration between charterers and owners sees Intermarine award Hammonia a charter rate significantly above market levels for the next five years.

And the vessels’ financier has extended the liens to finance the bulk of the $1.2m retrofits.

The project was overseen by the business-oriented environmental organisation the Carbon War Room (CWR) which awarded Hammonia a $120,000 grant to pay for monitoring equipment used in the retrofit of the vessels Industrial Ruby, Industrial Royal, and Industrial Revolution.

A number of improvements such as high quality hull coating, rudder and trim optimisation and new bulbous bow were fitted to the ships as they underwent drydocking.

"This deal showcases how to overcome the split incentive between owners and charterers, and delivers hard proof of the fuel savings from deep retrofits,” said Galen Hon, CWR shipping operations manager.

CWR will measure, verify, and publicise the fuel and carbon savings.

The data will be analysed by independent third-party, the University College London (UCL). Hon says the project aims to “increase industry confidence in the profitability of retrofits”.

Until now only one in 10 companies has aimed for savings of more than 10% from retrofit projects, according to DNVGL.The project is funded by the Dutch Postcode Lottery, which recently granted €1m ($1.09m) to CWR and Rocky Mountain Institute (RMI) to expand their efforts in the shipping industry.

The Industrial Ruby is also eligible for a 50% tonnage tax discount for the first year after retrofit under a scheme run by the Liberian Registry.