Demand for LNG-fuelled newbuilds is growing across the shipping industry. Pump specialist Svanehøj has quadrupled its sales of fuel pump solutions in 2021 and is heading for an all-time high order intake.
2021 has been a record year for new LNG dual-fuel shipbuilding contracts, which has a very positive impact on the order books at Svanehøj. The Danish marine pump specialist has had a terrific 2021 and is heading for a total order intake for the year between DKK 750 and 800 million ($114-121,5 million). This is 50% more than the previous record set in 2014.
Svanehøj’s patented DW fuel pump solution is one of the main growth drivers. The pump was introduced to the market in 2015 and will account for almost 30% of total orders in 2021. According to CEO Søren Kringelholt Nielsen, fuel pump sales have quadrupled compared to 2020, and the many new orders are spread widely across sectors.
“We see a significant increase in orders of fuel pump systems for LNG-fuelled boxships, cruise ships and PCTC vessels. Furthermore, we have received a very large number of orders for LPG carriers, where we supply pump systems for both cargo and fuel,” says Søren Kringelholt Nielsen.
Large orders for ULCVs and PCTCs
Svanehøj has, among other things, secured two significant orders from Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering for LNG fuel pump systems for 22 Ultra Large Container Vessels. Most recently, Svanehøj has signed an agreement with a Japanese FGSS supplier on fuel pumps for six LNG-fuelled Pure Care and Truck Carriers. The end customer is NYK, which is positioning LNG fuel as a bridge solution until future zero-emission ships can be realised.
NYK is far from alone in investing heavily in LNG. Classification society DNV recently announced that by the end of November, a total of 238 LNG-fuelled ships had been ordered so far this year. At the same time, statistics from the London-based shipbroker, Gibson, show that LNG-fuelled tankers stand at 23% of the global tanker order book.
“We see clear indications that many of the ships to be built in the coming years will be built to run on LNG. Therefore, we expect further growth in this segment”, says Søren Kringelholt Nielsen.
“At the same time, a market for new fuel types will emerge, driven by the large-scale investments in Power-to-X. We have already taken this into account with our fuel pump, which is fully compatible with e-fuels such as green ammonia and methanol. In this way, we address shipowners' uncertainty with a future-proof pump solution. Regardless of the propellant,” says Søren Kringelholt Nielsen.
Doubling of turnover in 2026
Svanehøj enters 2022 with a new strategy and a target of doubling its turnover to DKK 1 billion ($152 million) by 2026. In addition to fuel pumps for LNG, LPG, and future synthetic e-fuels, Svanehøj sees great potential in developing pump solutions for the infrastructure to be built around Power-to-X and carbon capture and storage (CCS).
