5 Jun 2024

Damen and Atal Solutions announce partnership to slash shipping emissions

Damen Shipyards Group is proud to announce its role in a partnership with Atal Solutions and other parties

Rick van de Weg

Damen Shipyards Group is proud to announce its role in a partnership with Atal Solutions and other parties that will deliver a significant boost for the maritime green transition. For BAM Shipping, the project partners will undertake the retrofit of four bulk carriers by integrating 8 different proven technologies. Damen’s role is to provide the vessels with fuel-saving and emission reduction technologies. Following this, the bulk carriers are anticipated to consume at least 20% less fuel and reduce up to 99% greenhouse gases (GHG).

The increased efficiency paves the way for these and other existing vessels to sail in compliance with recent regulations such as the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII). Additionally, the reduced OPEX of the vessels is expected to yield a rapid return on investment. As a further benefit, the overhaul is anticipated to increase the vessel’s lifecycle by a further ten years.

Committed to the green transition

Damen is committed to the shipping transition and has set itself the goal of becoming the most sustainable maritime solutions provider in the world. This commitment is shared by Atal Solutions, as underscored by the company’s arrangement of the 123.7 million USD funding for this unprecedented project. Atal will provide a supplier’s credit amounting to 105.2 million USD, requiring vessel owners to provide just 15% equity, and having a 10 year repayment period with competitive interest rates.

The approach enables considerable emissions reduction with conventional fuels. With no requirement to await the maturation of emerging technologies and/or relevant fuel infrastructure, a positive environmental impact can be made in the shortest possible timeframe. 

New standards for emission reduction

Atal Solutions’ Founder and Managing Director Edwin Sieswerda said, "We look at real impactful solutions – easy and fast to implement, based on proven technologies – and avoid idealistic solutions. If we truly believe in a project, we make it happen and don’t stop until we do. Currently, we are working on four vessels, but we anticipate many similar projects will follow upon the successful implementation of this initiative. Additionally, we expect increased support from the financial sector as the positive impact of our integrated solution becomes evident. Atal's ongoing collaboration with Damen and other industry players helps them set a new standard for fuel-saving and emission-reduction solutions.”

Sustainability at the forefront

Rutger van Dam, Business Development Manager at Damen said, “We are proud to team up with Atal Solutions to offer a robust solution for financing large projects such as this one on behalf of BAM Shipping, while mitigating risk and keeping sustainability at the forefront. Embracing Atal Solutions' innovative vision and capabilities, we are confident that this collaboration provides the ideal solutions to meet the current demand for cleaner shipping and fuel saving technologies. Our mutual goal is to accelerate the transition to more sustainable shipping while ensuring that the business case and revenue generation remain competitive. The financing structure of this project is a breakthrough, enabling significant advancements in sustainable shipping with a commercially viable model.”

The project is currently being implemented and is expected to be realized by Q1 2025.