KCC to install ‘largest ever suction sails’ on CABU III newbuild

Norwegian shipowner Klaveness Combination Carriers ASA (KCC) has decided to equip the upcoming CABU III newbuild with “the world’s largest” suction sails.

As informed, a subsidiary of KCC has entered into an agreement with China-based shipbuilders Jiangsu New Yangzi Shipbuilding and Jiangsu Yangzi Xinfu Shipbuilding to install its first-ever wind assisted propulsion system (WAPS) with two bound4blue eSAILs suction sails on the third CABU III newbuilding for delivery in Q3 2026.

Last year, KCC ordered three third-generation CABU vessels from the aforementioned shipbuilders. One of them will soon be equipped with bound4blue’s eSAILs as per recent contract.

The CABU III unit will be one of the first tanker/dry bulk vessels to feature bound4blue’s WAPS technology, while the two installed units will also rank as the largest ever suction sails, standing at 24 meters in height, according to the shipowner.

KCC’s decision to install bound4blue’s solution resulted from a comprehensive study of alternative sail technologies, where eSAILs were identified as the most efficient choice for the evaluated vessels and trade routes. bound4blue’s eSAILs, known as a suction sail takes advantage of the available wind at sea to generate clean forward thrust for the vessel, effectively reducing fuel consumption and emission from the vessel’s main engine.

The two eSAILs will be fitted at the bow of the vessel to enable efficient port operations. The DNV-type approved solution works by utilizing a fan system to drag air across the sail’s aerodynamically optimized surface, generating propulsive efficiency. eSAILs are available in three model sizes, starting from 12m and ranging up to 36m in height. KCC will be the first shipowner to install the largest unit, the model 3.

The installation of eSAILs is said to be a part of KCC’s environmental ambition to cut the carbon intensity of its fleet by more than 45% compared to 2018 by the end of this decade.

KCC’s strategy is to build on its trading efficiency of its combination carriers, having a 30-40% lower carbon footprint than competing standard vessels, by investing in innovative energy efficiency and operational efficiency measures. KCC has to date committed $32 million in 15 different energy efficiency measures, which in total are expected to cut fuel consumption and carbon emissions by 15% on its modern fleet built after 2015.

“We, at KCC, are excited to partner up with bound4blue on its journey of exploring and utilizing innovative wind assisted propulsion solutions on our fleet. This technology has large potential for reducing carbon emissions and is expected to become an important lever for the industry to reach its decarbonization targets,” Engebret Dahm, CEO of Klaveness Combination Carriers, commented.

“We’re thrilled to sign this new agreement with a shipowner of the standing of KCC. This is a landmark contract for us in many respects, becoming not only the largest eSAIL® the world has seen, but also our first newbuild project in China. It will give KCC a proven, autonomous, and operationally efficient solution. We look forward to partnering with the KCC team as they help lead the ‘wind revolution’ in this key shipping segment,” David Ferrer, co-founder and CTO, bound4blue, said.

Strong results in Q3 amid challenging markets

On October 30, 2024, KCC released its financial results for the third quarter of 2024, reporting “continued strong operational and financial performance”.

Specifically, EBITDA rose to $32.6 million in Q3 2024 from $27.9 million in Q3 2023. Similarly, EBT increased to $21.7 million in Q3 2024 from $16.3 million seen in the corresponding period last year.

TCE earnings for the KCC fleet outperformed both the dry bulk and product tanker markets in Q3, demonstrating the value of the combination carrier concept, according to the company. 

“KCC delivered strong results in the quarter amid more challenging markets with substantially weaker product tanker markets. Our CLEANBU vessels returned to more efficient combination trading, positively impacting earnings and emission performance, and both segments outperformed the standard dry bulk and product tanker markets,” Dahm noted.

KCC owns and operates 16 combination carriers built for the transportation of both wet and dry bulk cargoes. The vessels are operated in trades where they efficiently combine dry and wet cargoes with minimum ballast, capitalizing on imbalances in trade flows.

The carbon intensity (EEOI) of the KCC fleet improved significantly to reach 6.1, the lowest level ever achieved for a quarter. This was supported by a 19% Q-o-Q drop in CLEANBU EEOI, positively impacted by improved vessel utilization following increased combination trading. EEOI for the CABU fleet was stable at 6.3, around the same range as the previous four quarters.

“With expected lower rate differentials between dry bulk and tanker vessels going forward, we expect our combination carriers to demonstrate superior value creation. In such market circumstances the higher efficiency of our combination carriers is set to deliver premium earnings to standard vessels supporting continued strong financial performance and dividend distribution to our shareholders,” Dahm concluded.

With new owner into the New Year

KCC’s fleet of 16 vessels is under the technical management of Klaveness Ship Management AS (KSM), a company owned by KCC’s majority shareholder Rederiaksjeselskapet Torvald Klaveness (RASTK).

In October 2024, RASTK entered into an agreement with OSM Thome (OSMT), a ship management company, to sell 100% of its shares in KSM.

With this sale, shipowning subsidiaries of KCC have entered into new ship management agreements with KSM under ownership of OSMT for its current fleet and newbuildings. Additionally, Torvald Klaveness and OSM Thome have agreed to cooperate to explore new ways to modernize ship management through new technology and digitalization.  

Under the new ship management agreement with KSM/OSMT, the existing team of ship managers and marine superintendents will continue working exclusively for KCC.

As explained, with OSM Thome as the new owner of Klaveness Ship Management, Klaveness Combination Carriers will gain access to additional technical resources and scale that will further improve activities and support future expansion.

The new structure and agreements will be effective January 1, 2025.