- Zicom Group (ZGL) has secured orders worth S$60 million (around A$59 million) to design and supply a liquefied natural gas (LNG) propulsion systems
- The systems are for several oil product tankers being built for a leading European oil tanker owner
- The orders are expected to be delivered in 2022 and 2023
- Notably, three years ago, Zicom changed to green energy propulsion systems for ocean-going vessels
- With new shipping rules from the International Maritime Organisation, the company is expecting to see a growth in its technology
- On market close, Zicom is down 1.72 per cent and is trading at 5.7 cents per share
Zicom Group (ZGL) has secured orders worth S$60 million (around A$59 million) to design and supply a liquefied natural gas (LNG) propulsion systems.
The systems are for several oil product tankers being built for a leading European oil tanker owner. Zicom is expecting to deliver these orders in 2022 and 2023.
The order underscores the gathering momentum in the transformative marine sector.
Five years ago, deck machinery products hit a downturn and the company knew a transformation in the marine sector was needed. So, three years ago, Zicom embarked to develop technology for green energy propulsion systems for ocean-going vessels.
This direction allows the company to expand its footprint to cover the entire shipping industry and not just offshore marine applications.
Notably, international shipping is regulated by the International Maritime Organisation (IMO), which is linked to the United Nations agency.
IMO 2020 rules that all ocean-going vessels are required to reduce sulphur emissions from engines to 0.50 per cent (down from the original 3.5 per cent rate).
“Each of these choices has proven to have its limitations. New vessels would install gas engines instead of diesel engines and use LNG propulsion to
power the engines,” the company explained.
“The growth prospects for our technology are therefore expected to be strong,” it added.
On market close, Zicom is down 1.72 per cent and is trading at 5.7 cents per share.