KCC Concludes Milestone Contracts in Major Energy Efficiency Retrofit

KCC Concludes Milestone Contracts in Major Energy Efficiency Retrofit

25 Apr 2022 13:29 CEST

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.

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Source

Klaveness Combination Carriers ASA

Provider

Oslo Børs Newspoint