Scorpio Tankers Inc. Announces MOU Licensing FOWE Fuel-Saving Devices for Entire Fleet
Scorpio Tankers Inc. (STNG) has signed a non-binding Memorandum of Understanding with Fowe Eco Solutions Ltd. to install fuel emulsion systems across its fleet. The agreement is expected to reduce fuel costs by at least 3% and carbon emissions by 100,000 tons annually, with no upfront costs. The FOWE system has shown potential fuel savings of up to 6.3% for boilers and 8.7% for marine four-stroke engines, offering financial and environmental benefits.
Adopting FOWE's fuel emulsion technology represents a strategic move for Scorpio Tankers in the maritime industry, which is increasingly focused on sustainability. The projected reduction of 100,000 tons of carbon emissions annually aligns with global efforts to mitigate climate change and adhere to stricter environmental regulations such as the International Maritime Organization's (IMO) 2020 sulfur cap. The technology's ability to create a permanent emulsion without additives suggests an innovation that could set new standards in fuel efficiency and emissions reduction for marine vessels.
However, the environmental impact of such technologies must be scrutinized over the long term. While immediate emission reductions are promising, the full life-cycle analysis of the technology's environmental footprint remains essential. This includes the energy and resources required for manufacturing and maintaining the emulsion systems, as well as the potential environmental risks associated with their widespread adoption in the maritime sector.
The announcement by Scorpio Tankers to implement FOWE's fuel emulsion systems fleet-wide is a financially strategic decision, potentially reducing fuel costs by at least 3%. Given that fuel expenses are a significant operational cost for shipping companies, even a single-digit percentage reduction can translate into substantial savings and improved profit margins. The absence of material upfront costs and installation downtime further enhances the financial appeal of this initiative.
Investors should monitor the finalization of the licensing agreement, as the anticipated cost savings and emission reductions could positively influence Scorpio Tankers' financial performance and stock valuation. Moreover, the company's proactive approach to operational efficiency and environmental responsibility may bolster its reputation among ESG-conscious investors, potentially impacting its market position and investor sentiment in the long term.
The installation of FOWE's fuel emulsion systems by Scorpio Tankers could signify a shift towards more advanced and environmentally friendly technologies within the shipping industry. Fuel emulsion technology, which mixes water with fuel to improve combustion efficiency, is not entirely new but has gained traction due to its potential to reduce emissions without significant modifications to existing engines. The reported test results showing up to 6.3% and 8.7% potential fuel savings for boilers and marine four-stroke engines, respectively, indicate a noteworthy advancement over previous iterations of this technology.
For industry peers and competitors, Scorpio Tankers' move could serve as a benchmark, potentially prompting a wave of similar adoptions. The long-term industry implications could include a new standard for operational efficiency and a competitive edge for early adopters. It will be critical to observe how the technology performs under real-world operating conditions and whether it can deliver consistent results across different vessel types and routes.
02/22/2024 - 04:15 PM
MONACO, Feb. 22, 2024 (GLOBE NEWSWIRE) -- Scorpio Tankers Inc. (NYSE:STNG) (“Scorpio Tankers,” or the “Company”) announced that the Company has signed a non-binding Memorandum of Understanding to install the Fowe Eco Solutions Ltd. (“FOWE”) fuel emulsion systems across its entire fleet. The terms of the licensing agreement will require no material upfront costs for the Company and is expected to result in an overall reduction of at least 3% in fuel costs and 100,000 tons of carbon emissions annually.
Mr. Emanuele Lauro, Chairman and CEO of the Company, commented, “In terms of financial and environmental benefits, the FOWE system stands out for its clear and immediate advantages. Requiring little in the way of initial investment and eliminating the need for installation downtime, the FOWE solution presents an ideal pathway to reducing operating expenses and curbing greenhouse gas emissions.”
Mr. Dean Mihalic, CEO of FOWE added, “Recent tests conducted at the Alfa Laval Test and Training Centre in Aalborg, Denmark, indicate potential fuel savings of up to 6.3% for boilers and 8.7% for marine four-stroke engines. Our technology produces a permanent emulsion with no additives, resulting in cleaner and more complete combustion and significantly lower greenhouse gas emissions. We are pleased to have reached this stage with Scorpio Tankers, our anchor customer and trusted partner throughout the testing and development process.”
The final licensing agreement is subject to customary documentation and closing conditions, and it is expected to be signed within the first quarter of 2024.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns, lease finances or bareboat charters-in 111 product tankers (39 LR2 tankers, 58 MR tankers and 14 Handymax tankers) with an average age of 8.0 years. The Company has entered into an agreement to sell one of its MR tankers within the first quarter of 2024. Additional information about the Company is available at the Company’s website www.scorpiotankers.com , which is not a part of this press release.
About Fowe Eco Solutions Ltd.
FOWE’s mission is help consumers of conventional fossil fuels increase their efficiency and reduce their emissions by providing a stable, permanent, chemical free and homogeneous emulsion. FOWE’s Cavitech™ technology provides an efficient and simple solution to refiners and other consumers of various grades of fuel. Headquartered in Monaco, FOWE also has offices in Mumbai and Dubai. Scorpio Holdings Limited, a related party to the Company, owns a minority interest in Fowe Eco Solutions Ltd. To learn more about FOWE and its Cavitech™ technology, visit the website at www.fowesolutions.net.
Forward-Looking Statements
Matters discussed in this press release may constitute forward‐looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward‐looking statements in order to encourage companies to provide prospective information about their business. Forward‐looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “target,” “project,” “likely,” “may,” “will,” “would,” “could” and similar expressions identify forward‐looking statements.
The forward‐looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although management believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, there can be no assurance that the Company will achieve or accomplish these expectations, beliefs or projections. The Company undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors, other important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward‐looking statements include unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies in response to epidemic and other public health concerns including any effect on demand for petroleum products and the transportation thereof, expansion and growth of the Company’s operations, risks relating to the integration of assets or operations of entities that it has or may in the future acquire and the possibility that the anticipated synergies and other benefits of such acquisitions may not be realized within expected timeframes or at all, the failure of counterparties to fully perform their contracts with the Company, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company’s vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, including the impact of the conflict in Ukraine and the developments in the Middle East, including the armed conflict in Israel and Gaza, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off‐hires, and other factors. Please see the Company’s filings with the SEC for a more complete discussion of certain of these and other risks and uncertainties.
Contact Information
Scorpio Tankers Inc.investor.relations@scorpiotankers.com
What is the name of the company mentioned in the press release?
Scorpio Tankers Inc. (STNG)
What is the key partnership mentioned in the press release?
Scorpio Tankers Inc. (STNG) signed a non-binding Memorandum of Understanding with Fowe Eco Solutions Ltd.
What are the expected benefits of the agreement for Scorpio Tankers Inc. (STNG)?
The agreement is expected to reduce fuel costs by at least 3% and carbon emissions by 100,000 tons annually, with no upfront costs.
What potential fuel savings have been indicated by recent tests for boilers and marine four-stroke engines?
Recent tests showed potential fuel savings of up to 6.3% for boilers and 8.7% for marine four-stroke engines.
When is the final licensing agreement expected to be signed?
The final licensing agreement is expected to be signed within the first quarter of 2024.
