(TSX : ALC)
TORONTO, Jan. 30, 2012 /CNW/ - Algoma Central Corporation ("Algoma"),
the largest Canadian shipowner and operator of domestic, Great Lakes
vessels, will install fresh water, exhaust gas scrubbers on six new
vessels that will remove 97% of sulphur oxides emissions generated by
The St. Catharines, Ontario-based company has signed a contract with
Wärtsilä Ship Power for the supply of the systems for its Equinox Class vessels, which are currently being built by Chinese shipbuilder Nantong
Mingde Heavy Industry Co. Ltd. The total supply and installation cost
of the six scrubber systems is US$12 million.
The two gearless bulk carriers and four self-unloading bulk carriers are
designed specifically for Great Lakes service. These ships have been
designed with high efficiency hulls that will require less horsepower
to achieve higher speeds than any previous Great Lakes design and thus
achieve the lowest fuel consumption and emissions per tonne/kilometre
of cargo carried. The first Equinox Class vessel will arrive in Canada in the first half of 2013.
The Algoma order is the first for Wärtsilä's new, integrated, fresh
water, exhaust gas scrubber design. The scrubbers are designed to clean
the exhaust gases of the vessels' main and auxiliary engines as well as
the oil-fired boiler and will meet more stringent environmental
regulations taking effect over the next three years.
These scrubber systems will allow shipowners to use lower cost, heavy
fuel oils while, at the same time, meet the new Emission Control Area
sulphur limits established by the International Maritime Organization
(IMO) and adopted by Canada and the United States for the Great Lakes
and coastal waters. Without scrubber technology, shipowners will be
forced to convert vessels to burn more expensive diesel oil.
"The installation of scrubber units on our Equinox Class vessels fits with our stated strategic objective of improving the
efficiency of our fleet while at the same time reducing our
environmental footprint" says Greg Wight, President and CEO, Algoma
"These are truly important vessels as they will set new standards for
environmentally sustainable shipping on the Great Lakes and for cargo
vessels in general. The Wärtsilä integrated scrubber solution removes
more than 97 percent of sulphur oxides emissions," says Juhani Hupli,
Vice President, Ship Power Technology at Wärtsilä Ship Power.
"In addition to the environmental initiatives another key focus for
Algoma's fleet renewal process has been to reduce maintenance costs.
Wärtsilä's capability in providing both an integrated marine solution
and global service support was a major reason Wärtsilä was selected to
provide this comprehensive equipment package." says Al Vanagas, Senior
Vice President Technical, Algoma Central Corporation.
The Wärtsilä scrubber concept works with fresh water recirculating in a
closed-loop system. Sulphur oxides that are washed out of the exhaust
are neutralized with caustic soda. A small amount of scrubbing water is
continuously extracted and an on board water treatment unit removes
other captured contaminants such as particulate matter.
A major advantage of fresh water scrubbers is the possibility to operate
in a zero discharge mode which means that there is no effluent (waste
product) from the scrubber discharged into the lake water. The treated,
clean effluents would be held in a holding tank for discharge at an
appropriate location. Solid contaminants are disposed of at reception
facilities in port.
This process meets all the quality and monitoring requirements
stipulated by the IMO. Wärtsilä is the first manufacturer to have been
awarded a marine scrubber certificate by the classification societies
Det Norske Veritas, Germanischer Lloyd and Bureau Veritas.
Headquartered in Finland, Wärtsilä is a global leader in complete
lifecycle power solutions for the marine and energy markets. The Algoma
order is the first for Wärtsilä's new, integrated, fresh water, exhaust
gas scrubber design. In addition to scrubbers, Wärtsilä will supply a
fuel efficient main engine, shafting and propeller, auxiliary
generators, oily bilge water treatment systems and bow thrusters for
the Equinox Class vessels.
About Algoma Central Corporation
Algoma Central Corporation owns and operates the largest Canadian flag
fleet of dry and liquid bulk carriers operating on the Great Lakes -
St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers,
nine gearless dry bulk carriers and seven product tankers. Algoma also
has interests in ocean dry-bulk and product tanker vessels operating in
international markets. Algoma owns a diversified ship repair and steel
fabricating facility active in the Great Lakes and St. Lawrence regions
of Canada. In addition, Algoma owns and manages commercial real estate
properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
This press release may include forward-looking information within the
meaning of applicable securities laws including information concerning
the business and future results of Algoma. Forward-looking statements
in this press release include statements about the purchase of vessels
by Algoma. Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may differ
materially from those contemplated by this information. The statements
in this press release are made as of the date of this release and are
based on current expectations. Algoma undertakes no obligation to
update forward-looking information, other than as required by law, or
to comment on analyses, expectations or statements made by
third-parties in respect of Algoma, its financial or operating results
or its securities. Algoma cautions that all forward-looking information
is inherently uncertain and actual results may differ materially from
the assumptions, estimates or expectations reflected or contained in
the forward-looking information, and that actual future results could
be affected by a number of factors, many of which are beyond Algoma's
control, including economic circumstances, technological changes,
weather conditions and the material risks and uncertainties identified
by Algoma and discussed on pages 11 to 15 of Algoma's Annual
Information Form for the year ended December 31, 2010, which is
available on SEDAR at www.sedar.com.
SOURCE Algoma Central Corporation
For further information:
| Greg D. Wight, FCA |
President and Chief Executive Officer
| || || || Al Vanagas |
Senior Vice-President, Technical