Cancelling LNG-powered newbuilding as well as plans to retrofit LNG engines
Ferry operator Brittany Ferries has cancelled an LNG-powered newbuilding as well as plans to retrofit LNG engines to three of its fleet. Instead, the company is installing exhaust gas scrubbers on the trio of ships earmarked for LNG retrofit, which still represents an investment of 70-80M.
At the beginning of 2014, the company committed itself to an ecological transition plan in response to the stricter ECA limits coming into effect on 1 January 2015. However, it now believes the preconditions enabling the plan to be financially viable have not been met.
In an official statement the owner said: “Brittany Ferries has worked tirelessly over recent years to convince governments of the desperate need for a temporary exemption from the new rules, contained within the revised MARPOL Annex VI. However, with the January deadline fast approaching, it appears unlikely that such an exemption will be granted. This is despite Brittany Ferries’ ambitious plan going above and beyond what is required by the new rules, thanks to its reliance on LNG, which exceeds requirements concerning emissions of sulphur, CO2, nitrous oxide and particulate emissions. The company is simply unable to bear the costs of the double penalty that would be incurred by this programme.“
STX France, the yard which was to build the 210m LNG cruiseferry, responded to the news saying it understood the reasons for the decision but that at this time the market expects new and better solutions in gas propulsion. The contract was originally worth 270M and would have seen the ship delivered in late spring 2017.
Jean Marc Roué, Brittany Ferries’ chairman commented, “It is impossible for us to commit to an ecological transition plan which requires such a high level of investment, when, due to the absence of a temporary exemption, we will also incur hefty additional annual costs amounting to tens of millions of euros, due to us being obliged to use diesel instead of heavy fuel oil until our ships have been converted.
“We have worked tirelessly for a temporary exemption but these efforts have sadly been in vain. Without it, the economic viability of our LNG programme is in jeopardy. It is my duty to protect the company and its staff at a time when the European ferry industry is confronting numerous challenges.
“All of our partners who have worked with us on this project have demonstrated the technical feasibility and the environmental benefits of this pioneering, futuristic technology. However I have taken the decision to suspend the LNG component of our ecological transition plan. It’s a decision I take with much regret and disappointment.“
Source: IMAREST / Image Credit: Brittany Ferries
