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Hagland Shipping Goes All-In for Hybrid Propulsion With Bulker Order

enova

Published Apr 9, 2021 4:17 PM by The Maritime Executive

Hagland Shipping is diving into battery-hybrid propulsion with an order for up to four new self-discharging, hybrid-powered coastal bulkers. When delivered, they will be among the first of their kind in the sector. 

Hagland has contracted for an initial order of two 5,000 dwt, plug-in hybrid vessels from the Dutch shipbuilder Royal Bodewes. The design emphasizes zero-emissions, low-noise operations in harbor and reduced emissions while under way. 

The new vessels will replace older ships with traditional propulsion systems. The plug-in battery hybrid propulsion system will satisfy IMO Tier III, reducing NOx by 90-95 percent compared to the existing ships. The vessels are also expected to reduce total CO2 emission by more than 30 percent, with preparations in place for future zero-emission operation. 

The vessels are scheduled to be delivered during the first half of 2023, and they will proudly fly the Norwegian flag. Even with complex hybrid power systems, the total investment will be only $33 million for two European-built units.

"We are proud to have reached a new milestone in the history of our company. The investment in these newbuilds is a major step forward for the company and the transition to low and zero emission vessels within our segment. The new vessels represent the start of a renewal of the fleet that is also necessary in order to reach the ambitious climate goals set by the shipping industry," 

The newbuilding contracts have received substantial support from Norwegian energy innovation fund ENOVA, which will contribute about $3 million for the first two vessels. The balance of the financing will be a combination of equity and bank loans, and the company has also received an offer for long term financing from Innovation Norway.

If the first two hulls are satisfactory, Hagland Shipping has negotiated options with Royal Bodewes for two additional vessels.

While unique, these vessels will not be able to claim title as the first of their kind. That honor will likely belong to the vessel Hagland Captain, which Hagland Shipping is already working on converting to battery-hybrid power.