London: UK classification society Lloyd’s Register has teamed with Penn Oak Energy Corp to help companies raise capital and mitigate the technical risks associated with retrofitting ships fuelled by liquid natural gas (LNG).
“LNG as a fuel has emerged as one of the most considered choices for a new generation of vessels. The infrastructure to support this new class of ships has started to mature, and we have seen great strides in companies willing to convert their existing ships to this new fuel or constructing new ships in the US Emission Control Areas. Our relationship with Penn Oak Energy will help provide the private equity to shipowners to undertake these ambitious projects, and assist those ship builders that the US will need to expand this growing demand,” said LR’s Rafa Riva, marine business development manager.
Penn Oak Energy, based in Scottsdale, Arizona, is a developer of LNG fuel solutions for industrial clients.
Penn Oak Energy is offering a fuel-procurement agreement, where shipowners can spread the cost of the LNG conversions and the upfront capital requirements for these conversions over the life of the project.
“Working with Lloyd’s Register and various shipyard owners throughout North America, Penn Oak Energy has been able to sign up exclusive relationships with various shipyard builders to bring their yards up to spec on certification, safety and standards required to convert ships to dual fuel solutions,” said Philip Parker, head of business development for Penn Oak Energy.
