Tanker Owners Cannot Call a $140m Ship Too Old to Upgrade, Says BAR Technologies

With a 15-year-old tanker now worth more than a new one, owners have undermined their argument against retrofitting older ships, BAR Technologies says. The company argues that high secondhand values strengthen the case for installing wind propulsion on existing vessels. With most of the ships that will carry the world’s oil this decade already trading, the company says efficiency gains must come from the current fleet.

 

Details of the Argument

 

The company made a clear argument. High values change the case. A 15-year-old tanker is valuable. It may exceed a newbuild. This undermines old thinking.

The argument targets retrofitting. Owners once resisted it. They cited vessel age. Now values are high—the logic shifts.

 

The Value Context

 

Values have risen sharply. A prompt VLCC is costly. A newbuilding is cheaper. Even older vessels command high prices. These approach 140 million dollars.

The values reflect scarcity. Newbuildings deliver late. Most ships already trade. The current fleet matters. It carries this decade’s oil.

 

The Fuel Case

 

The company cites fuel savings. Wind is free at source. Older ships burn fuel. Every year adds cost. Savings accumulate.

The company modeled a route. A typical installation saves fuel. This runs into thousands of tonnes. The value is substantial. Payback comes in years.

 

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The Regulatory Case

 

There is a regulatory angle. Wind cuts emissions. It improves efficiency ratings. This maintains viability. Requirements are tightening.

The case supports life extension. It strengthens older ships. It improves performance. It reduces costs. It extends working lives.

 

The Proven Record

 

The technology is working. It features on existing ships. Bulk carriers were retrofitted. Independent bodies recorded savings. These were significant.

The technology is spreading. Tankers now carry it. An owner took delivery of several. More are due. It is scaling.

 

Significance of the Argument

 

The company cited a decade of delay. Shipping relied on the order book. But it is full until 2029. Current ships must improve. They burn fuel now.

The company posed a challenge. High values prove worth. A fraction could improve ships. Owners should reconsider. Retrofitting makes sense.