Klaveness Combination Carriers

Environmental & Social Information • Apr 25, 2022

KCC Concludes Milestone Contracts in Major Energy Efficiency Retrofit

KCC Concludes Milestone Contracts in Major Energy Efficiency Retrofit

Oslo, 25 April 2022: Klaveness Combination Carriers ASA (“KCC”) has concluded key strategic agreements for an energy efficiency retrofit on two of its modern vessels, including the installation of an air lubrication system and shaft generator. The contracts include options for introducing the same installations to a further nine vessels. Together with KCC’s previously announced energy efficiency initiatives, the concluded measures aim to reduce fuel consumption and carbon emissions by almost 20% when compared to performance as newbuilds. Enova, the Norwegian government enterprise promoting the transition to a low emission society, has granted up to approximately USD 1.0 million in support of the installation on one of the vessels.

The initiative includes a contract with Silverstream Technologies for installation of an innovative new version of Silverstream’s proven air lubrication system, the Silverstream® System. The system releases a carpet of microbubbles that travels the full length of the flat bottom of a vessel, reducing friction between the hull and water.

Additionally, a contract has been entered into with WE Tech Solutions Oy for the installation of WE Tech’s shaft generator. The shaft generator will produce electric power from the rotation of the propeller shaft, supplying power to Silverstream’s air lubrication system and other ship systems. The combination of the Silverstream® System and WE Tech’s shaft generator significantly improves the overall energy efficiency of the initiative.

The installations will be made on one CABU II class vessel and one CLEANBU class vessel during their next scheduled dockings during Q2 and Q3 2023, where the vessels are also scheduled to be equipped with Becker Marine System’s Mewis duct, silicone antifouling and welding seam fairing. As part of the contracts with Silverstream and WE Tech Solutions, KCC has received options to bring the same installation to an additional two CABU II and seven CLEANBU vessels.

Engebret Dahm, CEO of KCC, comments, “The contracts concluded with Silverstream Technologies and WE Tech Solutions are important milestones in KCC’s energy efficiency program, this will deliver sizable cuts in carbon emissions from KCC’s fleet over the next years and further strengthen our lead as the lowest carbon shipping provider in the dry bulk and tanker markets.”

The total project costs for the two vessels, including design and shipyard installation, are estimated to be approximately USD 7.0 million. The awarded grants from Enova are estimated to reduce cash investments to around USD 6.0 million, which will be fully financed by equity raised in November 2021 dedicated to KCC’s energy efficiency program.

To read more about KCC’s environmental performance and progress, see the Sustainability Report for 2021 published on www.combinationcarriers.com/investor-relations.

Contact

Engebret Dahm, CEO

Telephone: +47 957 46 851

Klaveness Combination Carriers ASA

KCC is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers. KCC’s combination carriers are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.