BAR Technologies has announced in a new report that the value of 15-year-old tankers has reached 140 million dollars, which may indicate to the owners of these ships that the costs of upgrading them are reasonable.
Tanker Valuation Report
According to John Cooper, CEO of BAR Technologies, the value of a new VLCC tanker currently on order is about 130 million dollars, with delivery expected in 2029. In contrast, a 15-year-old tanker can be traded at a price of 140 million dollars in the market. This change in value challenges the old discussions about the lack of cost savings in upgrading old tankers.
Impact on the Future of the Maritime Fleet
Cooper predicts that many of these tankers, which might have been sent for recycling in the coming years, will continue to operate into the 2030s. He states, "Every additional year means increased fuel costs, and for deep-sea vessels, wind energy is the only energy available for free."
Additionally, the use of WindWings technology can help reduce fuel consumption and lower CO₂ emissions, which could improve the Carbon Intensity Indicator (CII) ratings of the ships. For owners looking to extend the working life of old tankers, utilizing wind power can enhance operational performance and reduce fuel costs.
Economic Calculations
BAR Technologies estimates that installing 5 WindWings® on a VLCC tanker operating in the regular trade between the United States and Japan could save approximately 2,670 tons of fuel annually, equivalent to 2.27 million dollars in fuel cost savings. This return on investment is achieved within just 4 years based on fuel savings.
The WindWings technology is currently being implemented on existing ships as well. The cargo ships Pyxis Ocean and Berge Olympus have been upgraded with this technology, and independent reports indicate that under favorable conditions, the energy consumption of the main engine on Pyxis Ocean has decreased by up to 32 percent.
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