APL adopts green fuel system
Published: Sep 17, 2009
Singapore - The NOL subsidiary said it will go green with a new clean fuel system, which is expects to help the company achieve significant cost savings.
Container shipping firm APL hopes the tie up with high tech firm Neftech will help shave off 10 of its bunker fuel costs per ship using the new technology, which uses specialised equipment to add water to heavy fuel oil to produce a highly-efficient emulsified fuel for ships.
NOL chairman Cheng Wai Keung said the company will install the technology on 20 of APL's container vessels.
"In today's highly challenging business landscape, reducing costs, increasing efficiency and lessening environmental impact of our operations are among the biggest challenges we face," he said.
Neftech believes the technology will generate significant fuel savings on generators and main engines as well as reduce carbon emissions from ships. An average sized container ship measuring 6,000 TEUs could possibly see some US$1.8 millino in savings per year.
Neftech said it will not charge APL for the installation on board the 20 vessels. Both parties have agreed to share the future fuel savings that amount from it. APL is Neftech's first customer for its patented technology.
The announcement comes in the wake of NOL's record half year loss of US$391 million. The company has taken measures to keep costs low, including pay cuts for CEO Ron Widdows and other directors, reducing its workforce by 9% and idling some 15 container ships.
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