In October, DNV GL and two sponsoring charterers shortlisted seven shipowners for a tender to build and charter a zero-emissions bulk carrier for the Norwegian coastal trade.
But this month, after protests from some of the larger players that were not shortlisted, the process was reopened to all qualified entrants.
Among those that missed out on the original shortlist were some big Norwegian names with strong interests in green shipping, including Wilh Wilhelmsen and Grieg Star Shipping.
Sources said their complaints led to the reopening of the process, but DNV GL told TradeWinds that the move was a response to an unexpectedly strong set of proposals.
The Green Transport of Gravel and Grain by Sea project, unofficially called GreenBulk by organisers, is for contracts of up to 20 years’ duration with HeidelbergCement and Felleskjopet Agri, a Norwegian agricultural cooperative. The process is being overseen as part of DNV GL’s larger Green Shipping Programme.
TradeWinds reported in July that the competition represents the world’s first commercial tender to build and own zero-emission bulker newbuildings.
Thirty-one shipowners offered proposals in September, about half of them Norwegian.
Seven companies — including some lesser-known players — were invited to the pricing round last month in the DNV GL-organised competition. But now the shortlist has been scratched and all 21 qualified proposals will be allowed to go forward.
Project leader Eivind Dale of DNV GL confirmed that the original shortlist has been expanded from seven to 21 of the 31 applicants.
Dale said there had been no objections. The shortlist was expanded because of strong interest by many qualified players.
“We were really overwhelmed by the response,” he said. “We expected between five and 10 shipowners to be interested. Narrowing it down to the [originally planned] three would have been quite difficult.
“We decided on letting all qualified concepts from qualified companies go forward into the next phase, the request for quotes.”
It’s not that we are against having some competition. We are just concerned that it be a fair tender process
Henning Torp, Thor Dahl Shipping
Among the participants’ proposed zero-emission fuel solutions are compressed hydrogen, liquefied hydrogen and ammonia, plus liquid organic hydrogen carrier compounds, which can absorb and release hydrogen and can be stored at normal pressure and temperature.
Original tender documents envisage operation of a delivered zero-emission ship in 2023.
Dale said the timing of the project has not been changed.
Quotes from shipowners are due on 10 January 2021, and from fuel suppliers in a parallel bunkering tender a week later. An award to the winning shipowner remains scheduled for 15 February.
Dale declined to identify bidders, as meetings to confirm their participation are continuing.
But other sources said Belgium’s Compagnie Maritime Belge (CMB) and Dutch small bulker giant Royal Wagenborg were among the seven originally shortlisted companies. Hagland Shipping, Lighthouse Ship Management, Thor Dahl and Gard Shipping were the Norwegian companies on the list, while the seventh member was unknown.
Hagland and Lighthouse are established shortsea players based in south-western Norway.
Tonsberg-based operator Gard Shipping is an aframax and LR2 tanker operator, but operated in the shortsea market earlier in its history.
Sandefjord-based Thor Dahl Shipping owns three small containerships in international trading.
“If it is true that the process has been reopened to include 21 shipowners, then it will be interesting to see what kind of proposals are offered by those who originally did not qualify,” Thor Dahl chief executive Henning Torp said.
Torp, the only participant in the contest willing to speak on the record, said he learned the shortlist had been scratched only when he was asked by TradeWinds.
“It’s not that we are against having some competition,” he said. “We are just concerned that it be a fair tender process.”
Wilh Wilhelmsen spokeswoman Benedicte Gude told TradeWinds that she was “not in a position to comment”. Grieg Star spokesman Sveinung Tvedt said the programme was in an early stage and also declined to comment.
The Green Transport of Gravel and Grain by Sea project is one of several initiatives looking to deliver the first generation of vessels with zero-emission propulsion systems, including separate parallel efforts by GreenBulk participants CMB and Wilh Wilhelmsen.
The European HyShip programme comprises several hydrogen-fuelled projects such as a coastal ro-ro service to be operated by Wilh Wilhelmsen, a Stolt-Nielsen inland tanker project and a Diana Shipping capesize bulker project.
In Australia, Global Energy Ventures recently announced plans to develop zero-emissions ships fuelled by compressed hydrogen.