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LNG vessel boom benefits pump specialist
17 March 2022
Growth in market expected to continue
Marine pump specialist Svanehøj said a large new order from Jiangsu New Yangzi Shipbuilding highlights the significant liquefied natural gas (LNG) pump potential in the ocean-going vessel segments.
Orders for dual-fuel LNG vessels broke records in 2021 with a total of 240 ships globally, according to Svanehøj—more than the previous four years combined. And growth looks set to continue in 2022. According to data from classification society DNV, orders for 56 dual-fuel LNG vessels have been placed in January and February.
Svanehøj said it saw sales of its patented deepwell fuel pumps quadruple in 2021, and there are many indications that sales may increase even further in 2022, according to the company.
Svanehøj has just secured an order for fuel pump systems for 15 dual-fuel LNG container vessels (7000 TEU), which are to be built at Jiangsu New Yangzi Shipbuilding. The total of 30 deepwell fuel pumps will be delivered from August 2022 to January 2024. The order is among Svanehøj’s largest relating to LNG fuel to date. It is the second time within the last year that this customer has chosen Svanehøj as the supplier of LNG fuel pump systems. In July 2021, they signed a contract for deepwell pumps for 10 dual-fuel LNG container vessels (15,000 TEU).
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“Until a few years ago, the use of LNG as a marine fuel was limited to LNG carriers and smaller ships,” said Johnny Houmann, Chief Sales Officer, Svanehøj. “But we are now seeing a sharp increase in fuel pump orders for deep sea vessels such as container ships and car carriers. We were chosen as the supplier of fuel pump systems for over 50% of the dual-fuel LNG container vessels ordered globally in 2020-21. And we aim to increase our market share further in the coming years.”
Large investment in lean manufacturing and new equipment
To support the green transition of the maritime industry, Svanehøj is currently investing more than DKK 10 million in upgrading its production facilities in Denmark. A new factory layout with manufacturing cells and robotics will support Svanehøj’s ambitious growth strategy and reduce lead times for all products.
“We have made a strategic decision to implement lean manufacturing. By rethinking our processes, we expect to increase productivity and capacity by up to 50%,” said Mikkel Bülow Bundgaard Sørensen, Lean Specialist, Svanehøj.
Svanehøj has entered 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 carbon-neutral 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).
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