Hagland Shipping enters into a contract with Royal Bodewes

Norwegian operator Hagland Shipping has awarded a contract to Dutch shipyard Royal Bodewes for construction of two 5,000dwt self-discharging bulk carriers. The design emphasises zero emissions when in harbour and for a substantial reduction of emissions during sailing. The order is worth about NOK 280 million (US$33 million). Hagland Shipping has taken options for two additional vessels.

Hagland aims to achieve greener short-sea shipping through reduced greenhouse gases and reduced noise. The vessels will replace older vessels with traditional propulsion systems. The new ships will have plug-in battery hybrid propulsion which meets IMO TIER III requirements.

Compared to Hagland’s existing fleet, the vessels are expected to reduce carbon dioxide emission by over 30% and nitrogen oxide emissions by 90 to 95%. The vessels will also be prepared for zero-emission operations later. They are scheduled to be delivered during the first quarter of 2023 and the second quarter of 2023 and will operate under Norwegian International Ship registry.

The newbuilding contracts have been entered into on the basis of substantial support from ENOVA, a Norwegian Government company which invests in projects to protect the environment. ENOVA will contribute about NOK 26.8 million (US$3.1 million) for the first two vessels. Financing will otherwise be a combination of equity and bank loans, and Hagland Shipping has also received an offer for longterm financing from Norwegian national development bank Innovation Norway.

Moreover, Hagland Shipping is currently retrofitting its existing vessel Hagland Captain, which will be among the world’s first battery hybrid vessels in this market segment, a project that is carried out in cooperation with Norwegian company NOAH. The new vessels now ordered builds on the experience gained from that project.