Visionary Norwegian shipowner Lauritz Eidesvik is looking to the future by ordering – in partnership with Norwegian state oil company Statoil – the world’s first gas-fuelled supply vessels, posing a bold challenge to traditional diesel propulsion systems.

As a fisherman, I had to take responsibility and take chances both physical and economic because fishing is a competitive business and its all about being first to the catch, says Lauritz Eidesvik. The fourth-generation fisherman learned some hard lessons in commercial survival as a trawler captain plying the rugged waters of the North Sea, and these have proved equally relevant since his transition in the mid-Seventies to become a shipowner at the helm of a fleet of supply and seismic vessels operating from the Norwegian west coast. The 69-year-old veteran of the sea sees risk-taking and innovation as essential elements of a business strategy geared to remaining ahead of the competition in the offshore market.

His company Eidesvik Shipping, based in Langevåg on the idyllic island of Bømlo south of Bergen, has a strategic goal of continually developing new and better solutions through innovative thinking, according to Eidesvik.

This latest ground-breaking move into gas-fuelled vessels opens the door for this type of technology to gain wider application across the maritime sector, according to Terje Torget, station manager at DNVs local office on nearby Stord island.

Conventional environmental wisdom is that clean-burning gas is the fuel of the future, with considerably less toxic emissions than traditional fossil fuels, and harnessing this power source could yield significant commercial advantages for ship operation in years to come, not to mention the political benefits of adopting green technology.

Eidesvik has developed and ordered the pair of newbuildings in co-operation with Simon Møkster Shipping, with one going to each.

Economics the key
The gas-fuelled engines of the supply ship newbuildings will cut NOx emissions by up to 90% and CO2 discharges by up to 30% compared with conventional diesel engines. This is a fact that is likely to make oil companies, for which the environmental equation figures importantly on the bottom line, sit up and take notice.

DNV has played a key role in development of the gas propulsion system, in co-operation with Eidesvik Shipping, right from the initial conceptual stage through design development and engineering to final placement of the newbuilding contracts at local yard Kleven Verft. The vessels are due for delivery in November 2002.

The classification society was the first to develop new rules for gas-fuelled engine installations on newbuildings that facilitated progress by Eidesvik on the technological front. It is also actively engaged in further development of this technology.

Clearly DNV has had to break new ground in developing these regulations, says Torget. But this technology also represents a logistical challenge as it necessitates a network for gas bunkering, which is not currently available.

Notwithstanding the logistical hurdles that still need to be overcome, Torget believes the time is ripe for gas power as the Marpol Annex VI agreement still awaiting final ratification by member states will place stringent demands on diesel emissions that will give further impetus to the drive for alternative, less pollutive propulsion technology.

However, conversion of existing diesel engines is a costly business and economic incentives, such as tariff breaks on bunkers, may need to be introduced at the political level to make such a move commercially defensible for shipowners, according to Torget. He believes though that if the Eidesvik/Møkster supply ships prove successful in the market, this could change oil companies thinking about chartering such vessels versus diesel-fuelled ships.

While this type of propulsion is more expensive to install, looking at the big picture that takes into account fuel consumption costs and maintenance, the economics work out at break-even, explains Torget.

A specialised fleet
For Eidesvik Shipping, the newbuildings are an extension of Lauritz Eidesviks philosophy that environmental considerations should not be sacrificed for the sake of profit. The company has taken a proactive approach in this area by adopting DNV rules on Management of Safety and Environmental Protection (SEP) with procedures for both its land-based and marine organisation. Eidsvik currently operates a fleet of 14 specialised ships, including supply, seismic, survey, anchor-handling, cable-laying and subsea maintenance vessels, and has another seven newbuildings under construction exclusively at Norwegian yards, of which one is fully owned by the company and the other six jointly with other companies. A seismic newbuild Veritas Viking III has been contracted under its long-standing partnership with US company Veritas DGC.

Eidesvik is also developing a network of North Sea supply bases located along the western and northern Norwegian coast, in co-operation with Møkster and Aver Maritime, that is geared to strengthening logistical support for offshore operations.

While the North Sea remains the shipowners main market for supply vessels, its seismic ships are active worldwide including offshore West Africa, Brazil and North America.

A part of the companys strategy is to develop long-term partnerships, such as that with Statoil, with the aim of improving existing technology and giving birth to new concepts.

Eidesvik believes the companys close co-operation with DNV on the gas-driven vessels, involving an exchange of operational competence and technical expertise, has been a critical factor in the project and is evidence of Norways maritime cluster working more closely together to continually develop new ideas.

Norwegian companies must have a forward-thinking strategy. It is not possible to remain competitive in the long term with the same product; there must be constant product development and creativity. We need to come up with new ideas and solutions by working together. Otherwise others will come in and take over, Eidesvik says.

Community support
The shipowner could appropriately be described as a bridge-builder, both because of his promotion of economic ties within the domestic maritime community and his involvement in civic projects such as the Nkr1.8 billion Trekantsambandet scheme for construction of two bridges and an underwater tunnel linking the islands of his shipping heartland.

This is reflected by his preference for Norwegian yards. Apart from Kleven, the other beneficiaries of his newbuilding contracts are Aukra Industrier, Karmsund Maritime and Mjellem & Karlsen. He is also a vigorous proponent of the recruitment of Norwegian seamen through increased training and motivation, while he hopes the newly-elected coalition government will contribute to stimulating badly-needed enterpreneurship to reverse the creeping decline of the domestic maritime sector.

The down-to-earth shipowner shuns the more high-profile image of his industry peers, preferring to work behind-the-scenes to plant the seeds of industrial growth within his local Bømlo community of 10,800 people, among whom he is held in high esteem. It is this work that contributed to his award of the Kings Order of Merit (Knight of St Olav first class) last year.

His support for the creation of new business invites comparisons with Hans Nielsen Hauge, the itinerant 19th century Christian evangelist whose preaching of the gospel went hand-in-hand with developing industrial enterprise in Norways towns and villages. Today, too, he believes, religious principles must play a part in safeguarding the maritime workforce of the future.

I feel I have a stewardship role, he explains. My primary interest is not in making money but in leaving a lasting legacy for the local community to which I owe so much.

Text: Steve-M@online.no

Date: 2001-11-15