Singapore backs fuel-efficient technology

Ow Chio Kiat, executive chairman of the Singapore Shipping Corporation (SSC), has signed an agreement to market a new fuel-efficient technology to 10 shipping lines for the Singapore-based Neftech.

Up to 1,200 ships could eventually use this new fuel system and achieve up to $600 million a year in fuel savings based on SSC’s current principals and partners Neftech said. Developed by Neftech, a Russian-led company backed by prominent Singapore investors, the system uses cavitation technology which Neftech claims can save around 10% of a vessel?s fuel costs.

Recently, the company secured an agreement to install the fuel system, designed by a group of Russian scientists, on 20 of Neptune Orient Lines’ container vessels. Potential customers could include Euko Car Carriers, and Mitsui OSK Bulk Shipping.

Neftech says its fuel-saving system works as part of fuel emulsification process where water is added to heavy fuel oil to produce a highly-efficient emulsified fuel for ships. The company will also bear the installation costs of the systems and take a share of any fuel savings and carbon credits resulting from it.