Furetank and Algoma JV Orders Two More Vessels
Furetank and Algoma Central Corporation announced further expansion of their FureBear joint venture with orders for two additional vessels. The two ships will be constructed at China Merchants Jinling Shipyard in Yangzhou, China, with delivery expected in second and third quarters of 2026.
The new order for Vinga series vessels grows the FureBear joint venture to a total of 10 intermediate product tankers under construction, with the first vessel slated for delivery in the first quarter of 2024. All 10 vessels will be entered into the Gothia Tanker Alliance and operated by Furetank out of Gothenburg, Sweden, for the transportation of biofuels in Northern Europe.
"We see the upcoming phasing out of older tonnage in the market far exceeding the amount of newbuildings underway. Since we launched the Vinga series, no other vessels have been introduced that exceed their environmental performance. This encourages us to expand the series, improving our customer service, while continuously developing and refining the emission-saving technology on board," said Lars Höglund, CEO of Furetank.
The JV partners said they see growing demand for biofuels and renewable feedstocks in the European trade, requiring modern, intermediate size tankers designed for efficient cargo handling and tank preparation. "Customers are becoming more environmentally conscious and placing greater importance on reducing the climate footprint of their entire supply chain, including transportation," the companies said.
Gregg Ruhl, president and CEO of Algoma Central Corporation, said, "The closer we get to the delivery of our first FureBear newbuild, the more confident we are that our JV with Furetank will yield superior long-term results. We see a need for more Vinga tankers to ensure that we can support customer demand into the coming years and even decades, and with a best-in-class environmentally friendly design that will stand the test of time."
The Vinga ships are ice class 1A 17,999 DWT product tankers designed by Furetank together with FKAB Marine Design. They all have dual-fuel capability, run on LNG/LBG or gasoil and are fully equipped for shore power. 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. The ships have scored the best Energy Efficiency Design Index or EEDI value in their segment globally, meaning that they are the most energy efficient vessels according to the International Maritime Organization (IMO).
The two new orders bring the Vinga vessel series to a total of 19 ships, with the first generation of Vinga vessel entering the market in 2018.
"The vessels in service have been very well received in our market and have proven to function far beyond our expectations. The first ship has been operating for five years, the main engine running for 25,000 hours and not missing a single day in service because of technical issues. With that in mind, it is amazing to have found a business partner like Algoma who wants to join forces, place the investments, and continue this journey with us," Höglund said.
"Our aspiration is to grow FureBear only as large as it needs to be to meet the market demand of our customers. This is not an asset play; it is a customer service play, which has always been at the heart of what we do at Algoma and now with our partners," Ruhl added.
