Canada's Federal Government announced on October 26 a $22.5 million funding package for the Everwind Fuels green hydrogen project in Point Tupper, Nova Scotia. Included along with terminal upgrades, fuel loading arms and pipelines to handle ammonia, the investment includes three tugs.
Press releases indicate that Svitzer will "buy" three tugs.
Previous reports in September stated that Svitzer had committed to procuring or retrofitting one tug to use ammonia fuel. It would be the world's first tug to use green hydrogen derived ammonia fuel.
Today's announcement does not contain enough money to "buy" three new tugs along with all the other work proposed at Everwind. It also seems unlikely that the current three tugs at Point Tupper could or would be retrofitted. In view of their age it would not seem to be a sensible investment. Therefore Svitzer will likely be financing the construction of new tugs and amortize the cost over the term of a new contract.
According to my records Svitzer has until August 2025 left on the present contract with Everwind, so I assume that the current tugs will be replaced as part of a new contract. Point Chebucto (4100bhp, 61 tonne BP) dates from 1993, Svitzer Montreal (5072 bhp, 66 tonne BP) from 2004 and Svitzer Bedford (4895 bhp ca.60 tonne BP) from 2005. That is not particularly long in the tooth for tugs, but they are to the low end of current power standards.
Tugs are in much demand these days and shipyards are busy, so it is unlikely that any of the major tug builders can come up with three ammonia fueled ice class tugs in less than a year. I assume the contract will thus be extended for at least another five years beyond August 2025.
Svitzer and its predecessor, Eastern Canada Towing Ltd has provided tug services in Point Tupper, NS under the title of Point Tupper Towing. The company is a partnership with Atlantic Towing Ltd (ATL) with Svitzer providing the tugs and their management and operation. They also send tugs to Sydney, NS and Sheet Harour as needed.
A similar joint venture called Halifax Marine Towing has ATL providing tugs and their managment in the port of Halifax. The companies also co-operate on tug services in Sheet Harbour, NS providing a tug from either Halifax or Point Tupper depending on availability but only when needed. Recently ATL's Atlantic Willow and Svitzer's Point Chebucto provided ship assist in Sydney when an offshore power module as offloaded from a heavy cargo ship to a crane ship.
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