Scorpio Tankers signs pact to use FOWE fuel-saving devices

Monaco-based FOWE Eco Solution Ltd's fuel saving devices, which are being tested by several Indian firms, has found a new user in Scorpio Tankers Inc, which has signed a pact to use them across its entire fleet.

In a statement, Scorpio Tankers said it has signed a non-binding memorandum of understanding to install FOWE's fuel emulsion systems across its entire fleet. "The terms of the licensing agreement will require no material upfront costs for the company and is expected to result in an overall reduction of at least 3 per cent in fuel costs and 100,000 tonne of carbon emissions annually."

A process known as cavitation uses FOWE's Cavitech devices to allow emulsification of fuel oil, also known as furnace oil, with fresh water on land or onboard a vessel. The result is a considerable reduction in particulate matter.

FOWE chief operating officer Hemant Sondhi said the company's patented technology to emulsify fuel oil with 10 to 15 per cent water yields better energy yield of about 8 to 10 per cent due to better combustion of fuel.

The technology uses ordinary water and no chemicals, resulting in 8 to 10 per cent better heat recovery that leads to much lower consumption of the fuel. It produces near-zero particulate matter in fuel gas exhaust while SOx is reduced by about 40 per cent and NOx by around 30 per cent.

"We are offering our technology to Indian companies, particularly refiners," Sondhi said. The technology is being tested in several Indian companies. These tests are likely to translate into firm contracts for using FOWE devices.

Emanuele Lauro, Chairman and CEO of Scorpio Tankers, commented, "In terms of financial and environmental benefits, the FOWE system stands out for its clear and immediate advantages. Requiring little in the way of initial investment and eliminating the need for installation downtime, the FOWE solution presents an ideal pathway to reducing operating expenses and curbing greenhouse gas emissions." Dean Mihalic, CEO of FOWE added, "Recent tests conducted at the Alfa Laval Test and Training Centre in Aalborg, Denmark, indicate potential fuel savings of up to 6.3 per cent for boilers and 8.7 per cent for marine four-stroke engines. Our technology produces a permanent emulsion with no additives, resulting in cleaner and more complete combustion and significantly lower greenhouse gas emissions. We are pleased to have reached this stage with Scorpio Tankers, our anchor customer and trusted partner throughout the testing and development process."

The final licensing agreement is subject to customary documentation and closing conditions, and it is expected to be signed within the first quarter of 2024, the statement added. Monaco-based Scorpio Tankers owns, lease finances or bareboat charters-in 111 petroleum product tankers.

FOWE helps consumers of conventional fossil fuels increase their efficiency and reduce their emissions by providing a stable, permanent, chemical free and homogeneous emulsion. Headquartered in Monaco, FOWE also has offices in Mumbai and Dubai. When fuel oil used in large ships is treated, it results in 10 per cent bunker fuel consumption saving.