Algoma Central Corporation today announced it has expanded its investment in the FureBear joint venture with two additional vessel orders, bringing the total newbuild order to ten intermediate product tankers to trade in Northern Europe with their partner Furetank AB of Sweden. The two companies continue to position FureBear to increase fleet capacity to expand into new markets and meet future demand for biofuels transportation.
The new order for Vinga series vessels grows the FureBear joint venture (JV) to a total of ten ships under construction, with the first vessel slated for delivery in the first quarter of 2024. Several trends in the market have fueled the companies’ decision to extend their fast-growing joint venture.
“We see the upcoming phasing out of older tonnage in the market far exceeding the amount of newbuildings underway. Since we launched the Vinga series, no other vessels have been introduced that exceed their environmental performance. This encourages us to expand the series, improving our customer service, while continuously developing and refining the emission-saving technology on board,” says Lars Höglund, CEO of Furetank.
Another important factor supporting the rapid JV expansion is the growing demand for biofuels and renewable feedstocks in the European trade. This type of demand benefits modern, intermediate size tankers designed for efficient cargo handling and tank preparation. Customers are becoming more environmentally conscious and placing greater importance on reducing the climate footprint of their entire supply chain, including transportation.
“The closer we get to the delivery of our first FureBear newbuild, the more confident we are that our JV with Furetank will yield superior long-term results. We see a need for more Vinga tankers to ensure that we can support customer demand into the coming years and even decades, and with a best-in-class environmentally friendly design that will stand the test of time,” says Gregg Ruhl, President and CEO of Algoma Central Corporation.
With the first generation of Vinga vessels entering the market in 2018, Furetank has confirmed the design and technology is robust and efficient.
“The vessels in service have been very well received in our market and have proven to function far beyond our expectations. The first ship has been operating for five years, the main engine running for 25,000 hours and not missing a single day in service because of technical issues. With that in mind, it is amazing to have found a business partner like Algoma who wants to join forces, place the investments, and continue this journey with us,” says Lars Höglund.
“Our aspiration is to grow FureBear only as large as it needs to be to meet the market demand of our customers. This is not an asset play; it is a customer service play, which has always been at the heart of what we do at Algoma and now with our partners,” concludes Mr. Ruhl.
The two ships will be constructed at China Merchants Jinling Shipyard in Yangzhou, China, with delivery expected in second and third quarters of 2026. The two new orders bring the Vinga vessel series to a total of 19 ships. Construction on the first FureBear vessel is on schedule for its 2024 delivery. All ten FureBear vessels will be entered into the Gothia Tanker Alliance and operated by Furetank out of Gothenburg, Sweden.
(Photo from Algoma Central Corporation)
