Algoma and Furetank Establish Product Tanker Joint Venture

Canadian shipping company Algoma Central Corporation announced it has entered into a joint venture agreement with Furetank AB of Sweden to construct four dual-fuel ice class 1A 17,999 DWT climate friendly product tankers to trade in Northern Europe. The 50/50 joint venture will be named FureBear.

The tankers will be constructed at China Merchants Jinling Shipyard in Yangzhou, China, with delivery expected between 2023 and 2025. Upon completion, all four vessels will be entered into the Gothia Tanker Alliance, and will be operated by Furetank out of Gothenburg, Sweden. Each vessel has been specially designed by Furetank in collaboration with FKAB Marine Design and several onboard system suppliers with energy efficiency at the forefront of the planning process. The four FureBear vessels will be sisters to the eight Vinga-Series vessels currently trading in the Gothia Tanker Alliance which have proven to be top-performing tanker assets globally when it comes to energy efficiency and climate footprint.

The Vinga sisters all have dual-fuel capability and run on LNG/LBG or gasoil. They are designed with a battery hybrid solution and several innovative features that reduce fuel and energy consumption, resulting in extensively lower emissions of CO2, sulphur oxide, nitrogen oxide and hazardous particles. They are also fully equipped for shore power.

“This investment will enable us to continue on our strategic path to diversify geographically and into niche short sea markets,“ said Gregg Ruhl, President and CEO of Algoma Central Corporation. “Short sea shipping is our core DNA here at Algoma and these specialized, environmentally conscious vessels will fit naturally into our expanding global fleet.”

“We are pleased to welcome aboard Algoma and combine our companies’ symbols to create the FureBear joint venture,” said Lars Höglund, CEO of Furetank. “Furetank has deep roots in the shipping industry and a rich family history dating back to the 17th century, but our focus is aimed forward towards the goal of sustainable shipping. Together with Algoma’s similar narrative, I look forward to our collaboration and to continue our journey as a leader in the Northern European petroleum trade. These vessels will be top-performers in the market by offering efficient cargo operations all while reducing our environmental footprint.”