Singapore's BW LPG has called the fuelling of a VLGC with LPG a "milestone achievement".
The 84,195-cbm BW Gemini (built 2015) is the first such vessel to run on the gas.
The dual-fuel ship started a week-long sea trial on Wednesday, the Oslo-listed BW Group spin-off said.
The company said the BW Gemini’s retrofitted main engine has been able to use LPG and also switch to traditional fuel “seamlessly”.
Work at Yiu Lian Dockyard in Shenzhen, China, took 60 days and is estimated to have emitted 2,060 tonnes of CO2.
This is about 97% lower than building a new ship with similar technology, BW LPG said.
Company chief executive Anders Onarheim said: “Strong commitment by the board and management to sustainable business operations have translated to this milestone achievement.
Shared vision realised
"Heartiest congratulations to the talented people, both at BW LPG and our industry partners, who collaborated for years to deliver on a shared vision."
The company believes the use of LPG as a fuel is a "pioneering and promising" solution for sustainable shipping.
Pontus Berg, executive vice president of technical and operations at BW LPG, added: “LPG is powering our vessels while protecting the environment.
"With over 80 years of experience in LPG handling, we look forward to demonstrating its benefits to the industry and prepare for the future of zero-carbon propulsion."
The sistership BW Leo is also due to emerge from the yard as LPG-capable soon, the company has said.
Pandemic delays
BW LPG had originally planned to complete the work on an initial four vessels in the first quarter, but the Covid-19 lockdowns to the yard temporarily stalled plans.
Onarheim told TradeWinds in August that it was a combination of this and the company’s decision to continue trading the ships in a strong market that slowed the jobs.
He said BW LPG remains “fully committed” to its LPG engine retrofits on 12 VLGCs.
Work on all of the ships is scheduled to be completed by the end of next year.
Onarheim said there are eight more ships in the company’s fleet that could be candidates for similar retrofits. But, for now, the focus is on the original 12.
The cost of each retrofit is between $9m and $10m. Payback on the extra investment is a little less than six years.
Onarheim said there are about 150 vessels in the VLGC fleet that could be retrofitted, with tonnage of up to eight years old being the prime candidates.