China Auto Corp associate Neftech Pte Ltd has clinched a multi-million dollar contract to provide its proprietary cavitation fuel treatment technology to American President Lines, a wholly owned subsidiary of Neptune Orient Lines, Naftech press release said.
In a filing with the stock exchange, CAC said that Neftech has informed it that the fuel savings are for the main engines on four of APL's containerships. It also said that the transaction would contribute positively to earnings for the current financial year.
'The substantial order from APL is a strong endorsement of the viability of our marine cavitation systems which we believe are the only such commercial systems currently available worldwide,' said Neftech chairman Victor Levin in the filing.
'In addition, Neftech has also recently completed the sale of two of its systems to CMA CGM, the third-largest container shipping line in the world.'
Neftech is 23.9 per cent owned by CAC - formerly Acma Ltd - and was incorporated in 2007.
It was founded by Russian scientists who focus on cavitation technology, which aims to ensure fuel is used more efficiently and with less pollutants being emitted. Among its other shareholders are well-known local stockbroker Goh Geok Khim, former cabinet minister Yeo Cheow Tong and retired NOL chief operating officer Lim How Teck.
CAC last August announced that Neftech's technology had been tested by the American Bureau
of Shipping Consulting and found to offer 7.6 per cent fuel savings when used for a ship's main engines and 8.6 per cent for auxiliary engines.
'Of course, there are many variables involved, such as speed, depth and type of fuel,' Mr Levin told BT yesterday. 'But many tests have confirmed ABS's findings that such savings are possible.'
CAC and Neftech have estimated that an average containership consumes over US$20 million of fuel per year, which means that annual savings of US$1.5 million is possible per ship.
'There is still plenty of scepticism in the industry over our technology,' said Mr Levin. 'We hope that the APL deal will help convince others of its benefits.'