Silverstream Technologies | Silverstream signs Agreement in Principle with China Classification Society

Silverstream signs Agreement in Principle with China Classification Society

Maritime clean technology company Silverstream Technologies has signed an Agreement in Principle (AIP) with China Classification Society (CCS), a leading member of the International Association of Classification Societies (IACS), and the primary class society in China that serves the shipping, offshore and related industrial industries.

This is Silverstream’s first agreement of this nature with a classification society. The AIP confirms that CCS has reviewed and verified the Silverstream^® System’s design drawings and provides an independent class verification of its generic system design. Furthermore, the organisations will collaborate on project-specific engagements and approvals for the integration of the Silverstream^® System in ships classed by CCS.

The AIP further strengthens Silverstream’s ties to the Chinese shipping market. The company has an office and team in Shanghai, 20 of whom are purely dedicated to on-the-ground support for Asian installations of its technology. The Shanghai team is critical to Silverstream’s continued collaboration in China and enables the company to be at the very heart of one of the global shipping industry’s most important hubs.

Noah Silberschmidt, Founder & CEO, Silverstream Technologies, said:“We are delighted to sign our first agreement of this style with a classification society, especially with CCS. CCS is one of the most influential class societies in the Chinese market, particularly for intranational projects between Chinese shipowners and Chinese shipyards. Through this important agreement, we look forward to further building our relationship with a key industry player, and to continuing commercial success in Asia and worldwide.”

Silverstream recently became one of the founding members of the Global Sustainable Transport Innovation Alliance (GSTIA), an initiative sponsored by the Chinese Ministry of Transport, designed to accelerate green industrial projects within China. Silverstream is a founding member alongside Airbus, Siemens, Maersk, Volvo, Alibaba, CMA CGM, COSCO, DHL and China Merchants Group. As decarbonisation leaders in their respective industries, the members will share knowledge and expertise to help promote green projects within China over an initial five-year period. More information on the projects will be shared via Silverstream and GSTIA channels in due course.

The news of Silverstream’s involvement in the GSTIA follows other recent China-based announcements for the company, with a range of agreements being signed with Chinese shipyards. These include a Memorandum of Understanding (MoU) with COSCO Shipping Heavy Industry, and 10 new system orders for LNG carriers, many of which will be built at leading Chinese yards.

Silverstream and COSCO Shipping Heavy Industry in deal to propel ALS uptake

 Silverstream and Chinese shipyard group COSCO Shipping Heavy Industry Co. Ltd (CHI) have signed a high-level memorandum of understanding (MOU) which will explore opportunities to install the Silverstream® System in CHI shipyards.

The MOU will foster a deeper level of collaboration between the two organisations and will enable Silverstream to assess how its technology could be licensed to fit within CHI’s technology portfolio. The agreement will also enable Silverstream to investigate additional options for the fabrication and supply of components of the Silverstream® System in China and the Asia-Pacific region, and it directly supports the company’s strategy of direct engagement with Chinese shipyards.
 
CHI is headquartered in Shanghai and operates nine shipyards – four for newbuilds and five for ship repairs. It ranks second in China for newbuild market share volumes and equal first in the repair/retrofits market. CHI operates yards for shipowners based around the world, including for its several sister COSCO Shipping companies.
 
Noah Silberschmidt, Founder & CEO, Silverstream Technologies, commented: “We are delighted to sign this MOU with CHI, which will enable us to work with the yard to find opportunities to install the Silverstream® System on ships built and repaired across its portfolio. Our established technology is fast becoming a standard selection on newbuild vessels and a leading retrofit option to improve vessel efficiency. In CHI, we have found another strong partner to help us continue to work towards this target. We look forward to a long-lasting and mutually beneficial relationship.”
 
Xiao Zijian, Commercial Director of CHQ, COSCO Shipping Heavy Industry, commented: “We are in a new era of transformation and development of the shipping industry. In order to meet shipowners’ needs to upgrade the efficiency of their fleets, we pay close attention to the world’s leading energy-saving clean technologies and marine products. We are therefore very pleased to establish the MOU with Silverstream Technologies, the leading supplier of hull air lubrication systems. Through the localisation of the supply chain and further installations of Silverstream’s technology, carried out in Chinese yards, we can play a complementary role in each other’s businesses and jointly provide high-quality and cost-effective vessel efficiency solutions to shipowners worldwide.”
 
In 2023, ship operators have submitted baseline performance statistics for the International Maritime Organization’s Carbon Intensity Indicator (IMO CII) regulations. Ships will receive the first vessel efficiency ratings within the CII ranking framework in 2024. Additionally, CO2 emissions from ships above 5,000 GT and transporting cargo or passengers for commercial purposes will be included in the European Union Emissions Trading System (EU ETS) for the first time from 1 January 2024. With these new regulatory drivers becoming more impactful on vessel operations, the need for improved vessel efficiency, and therefore the need for adopting energy efficiency technologies, is only set to increase.
 
Silverstream is already meeting this increased demand for efficiency. As of August 2023, 179 vessels are contracted to have the Silverstream® System installed across all shipping segments, with 44 of those ships already in service with the system onboard. Silverstream is realistically targeting 500 orders by 2025.

MMHE signs strategic partnership with Silverstream to support decarbonisation agenda

Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) has signed a strategic agreement with maritime clean technology company Silverstream Technologies. The partnership will facilitate retrofit opportunities for Silverstream’s market-leading air lubrication technology – the Silverstream® System – as well as collaboration, information and knowledge sharing between the two companies.

MMHE, one of the most prominent LNGC repair yards in Asia, will collaborate with Silverstream Technologies to support LNGC owners and operators in their decarbonisation efforts by improving the efficiency of their vessels towards EEXI and CII compliance. MMHE, a wholly owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (MHB), has more than 45 years’ experience in delivering energy and marine solutions for a wide range of heavy engineering facilities and vessels. 

As part of the agreement, the two organisations will perform joint promotion of the Silverstream® System and other complementary products and services, and MMHE will become an approved installation provider of the air lubrication technology.

The collaboration will also see Silverstream provide technical and commercial support to assist MMHE in securing contracts, including the provision of initial efficiency saving estimates and system design information on proposed installations.

Pandai Othman, MD & CEO, MMHE, said: “We are delighted to sign this agreement with Silverstream, a renowned maritime clean technology service provider. This strategic partnership is a promising start as it unlocks new commercial opportunities for both companies.

“Together, it allows us to bring the powerful combination of MMHE’s retrofit and conversion technical expertise and Silverstream’s air lubrication system to market in supporting our customers’ decarbonisation strategies, thus accelerating the industry’s transition to cleaner shipping.”

Noah Silberschmidt, Founder & CEO, Silverstream Technologies, said: “We are very pleased to announce our collaboration with MMHE, a world-class shipyard with an exceptional history in LNGC repair and conversion services.

“By working together, we aim not only to raise awareness among our combined customer base of Silverstream’s market-leading air lubrication technology, and MMHE’s role as one of the world’s leading LNGC shipyards, but also to encourage adoption of clean technologies more widely in the industry as an essential step in shipping’s decarbonisation journey.”

Silverstream and ICE co-operate on retrofit design

ICE Marine Design and Silverstream have entered into a framework agreement for worldwide installation design services for retrofitting of the Silverstream® System, the market leading patented air lubrication system designed for reduction of friction between ships’ hulls and seawater. London-based Silverstream Technologies is a founding member of the Global Industry Alliance for combating pollution within shipping. The Silverstream® System has been proven to deliver substantial fuel savings and an associated reduction in GHG emissions.

Commenting on the new cooperation agreement, Steinar Draegebo, ICE Group’s Chairman & Chief Executive, said: “ICE has for some years been designing retrofit installation of ballast water treatment (BWT) and exhaust gas cleaning (EGC) systems into existing ships; we routinely send employees around the world to undertake laser scanning onboard ships to ensure we can design an installation that can be done as quickly and cost-effectively as possible.

“We are honoured to be selected by Silverstream Technologies to extend our retrofit design activity to help the many shipowners around the world whoare keen to reduce fuel costs and help combat pollution using the Silverstream® System. We expect this to be a major retrofit market opportunity within the near future as the industry becomes aware of the substantial benefits of the technology, with the aim that the Silverstream® System is routinely included in new ships when they are being built”.

Shell and Silverstream sign framework agreement to drive clean technology take up in LNG

Silverstream Technologies signed a landmark framework agreement for retrofit installation of the Silverstream® System on some of the vessels in the Shell International Trading and Shipping Company Ltd. (“Shell”) LNGC fleet.

The agreement will see Shell and Silverstream develop a close working relationship for the design, engineering, procurement, and execution of the Silverstream® System.

The new framework will enable Shell to expedite the installation of the technology on Shell’s LNGC fleet. Initially covering the next three years, the framework will ultimately reduce contract lead times and the total cost of ownership for vessel operators.

Today’s announcement marks the next step in the longstanding relationship between Silverstream and Shell. Tracing their relationship back to 2014, Silverstream and Shell have collaborated on a number of vessel performance studies and landmark sea trials to fully understand and verify the savings potential of the Silverstream® System.

In-operation trials have proven that the Silverstream® System reduces fuel consumption and associated emissions by between 5-10%, depending on vessel profile.

Noah Silberschmidt, CEO, Silverstream Technologies, added: “Today’s announcement marks a significant next step for Silverstream. Shell has been a longstanding and important partner for our organisation, and strengthening this relationship will help to drive clean technology uptake within a crucial market segment.

“That is why signing this framework agreement today makes sense. Given the rate of change within our industry, we hope that this will prove to the sector that retrofitted clean technologies such as the Silverstream® System are easy to procure and execute, and should form an integral part of an overall GHG emissions reduction strategy for existing vessels and fleets.”

The Silverstream® System reduces fuel consumption and associated emissions by creating a carpet of microbubbles that coat the entire flat bottom of the vessel. This carpet reduces frictional resistance between the hull and the water. The technology works in all maritime conditions, is not weather dependent, and does not constrain or negatively impact the normal operational profile of the vessel.

Wärtsilä and Silverstream to collaborate on accelerating deployment of air lubrication technology

Technology group Wärtsilä, and Silverstream have announced the signing of a Licence and Co-operation Agreement for future sales and servicing of the Silverstream System. As an authorised sales and service partner, Wärtsilä intends to fully integrate Silverstream’s air lubrication system within its propulsion solutions.

By offering the Silverstream System as an integral part of Wärtsilä’s propulsion solution for newbuild vessels, compliance with the Energy Efficiency Design Index (EEDI) will be further improved. Under the agreement, the Silverstream System will also be available through Wärtsilä’s sales channels for retrofit installations on existing vessels where Wärtsilä is a primary solution provider. The integrated Silverstream System is expected to realise synergies in capital and operational savings across the propulsion chain by increasing fuel efficiency, and optimising engine loading.

This new collaborative partnership will accelerate the deployment of air lubrication systems across all vessel classes, from small bulk vessels to the largest container ships. By combining Wärtsilä’s propulsion expertise and Silverstream’s innovative engineering knowledge, access to this clean technology will be facilitated across the market.

Going forward, the collaboration agreement will enable current and future Silverstream customers to access Wärtsilä’s global service network for the maintenance of their Silverstream System installations. Wärtsilä’s network of service centres, workshops, and service professionals is the most extensive in the maritime industry, with 4500 field service professionals located in 70 countries around the world.

The agreement means that more ship owners will have easy access to Silverstream’s proven air lubrication technology. The system has been proven to reduce fuel burn and associated emissions by 5 to 10%, depending on vessel type.

Speaking on the agreement, Lars Anderson, Director, Propulsion, Wärtsilä Marine, said: “At Wärtsilä we are committed to fully supporting our customers as they strive to reduce operating costs and improve the environmental sustainability impact of their operations. Today’s agreement enables us to facilitate the building of better vessels that meet tomorrow’s challenges today, and Silverstream are the ideal partners to help us realise this goal.”

Noah Silberschmidt, CEO, Silverstream Technologies, added: “Today’s agreement with Wärtsilä reinforces our position as the shipping industry’s leading clean technology manufacturer. In Wärtsilä we find a partner as committed as we are to achieving a cleaner, more efficient and sustainable maritime industry.

“With the global sulphur cap almost upon us and decarbonisation targets on the horizon, the commercial case for proven clean technology has never been stronger. Now is the time for ship owners to take action to reduce their operational costs and their impact on the environment, and today’s agreement will help unlock the power of air lubrication technology for more vessels across our sector.”

The Silverstream System creates a carpet of bubbles that coat the entire flat bottom of the vessel. This carpet reduces frictional resistance between the hull and the water, dramatically reducing fuel consumption and related emissions. The technology works in all maritime conditions, is not weather dependent, and does not constrain or negatively impact the normal operational profile of the vessel.

Silverstream signs landmark MOU with Hudong-Zhonghua for new build LNG carriers

Silverstream has announced the signing of a Memorandum of Understanding (MoU) with leading shipbuilding group, Hudong-Zhonghua, part of the CSSC Group. The MoU will see Silverstream’s air lubrication technology – the Silverstream® System – integrated into Hudong-Zhonghua’s new building designs for its future LNG (liquefied natural gas) carriers in order to increase operational and fuel efficiencies, reducing fuel costs and emissions by between 6% and 8% for laden and ballast conditions.

Hudong-Zhonghua is a subsidiary of the China State Shipbuilding Corporation (CSSC), China’s largest shipbuilding group, and the second largest in the world. To-date, it is also China’s leading manufacturer of LNG carriers, with a capacity for six to eight vessels in its yard.

The MoU is a significant landmark for Silverstream, as it is the company’s first LNG class newbuild project. It also represents both the Asian market’s growing interest in air lubrication systems, and its wider demand for greater efficiencies and sustainability in newbuild orders.

Commenting on the development, Noah Silberschmidt, CEO, Silverstream Technologies, said: “We are delighted and honoured to have signed this landmark agreement with Hudong-Zhonghua, one of the world’s largest and most respected ship yards. It is a significant step for Silverstream as we expand into a new vessel class, and further grow our customer base in the important Asian market.”

The signing of the MoU marks 12 months of in-depth collaboration between the two organisations, which culminated in the approval of Silverstream’s technology onto Hudong-Zhonghua’s LNG carrier newbuild designs. Both Silverstream and Hudong-Zhonghua will continue to collaborate to drive the sales process with prospective ship owners, working together to ensure the optimum efficiency and design on future orders from the yard.

Mr Danping Lou, Chief Technical Officer, Hudong-Zhonghua Shipbuilding, said: “We are committed to bringing to market the most operational and energy efficient newbuild vessels for the LNG sector. In working closely with Silverstream over the past 12 months, we have seen the real attributes of air lubrication technology and the Silverstream® System, and it was clear that incorporating it into the designs for our newbuild LNG vessels, in conjunction with other measures, would deliver optimum performance. We are confident that these new vessels will set the benchmarks for vessel design and performance in the LNG sector.”

Additionally, the UK Government’s Department for International Trade has played an important role in developing the strong relationship between the UK and Asia, both in terms of maritime innovation, and bringing the two companies together.

Lei Cullinan, Head of Marine China, Department for International Trade, said: “Asia is the world’s largest shipbuilding market, and combined with the UK’s pedigree for maritime innovation creates the foundation to create new technologies and ship designs that meet the sustainability challenges that the shipping industry faces. This agreement between Hudong-Zhonghua and Silverstream is evidence of this, and highlights the opportunity to continue to drive progressive and positive change.”

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