ASX-listed Zicom Group said Tuesday it won orders worth about $45 million to design and supply LNG propulsion systems.
The systems will power several DNV GL-classed oil product tankers that will serve a leading European oil tanker owner, Zicom said without revealing the name of the firm.
In addition, the Singaporean manufacturer plans to deliver the equipment in 2022 and 2023.
The firm sees a growing momentum for LNG-powered vessels due to more strigent IMO rules and as owners look to slash emissions.
IMO 2020 rules mandate that all ocean-going vessels must reduce sulphur emissions from engines to 0.50 percent.
In order to comply with these rules, owners install scrubbers to existing vessels or use high-grade low sulphur fuel instead of diesel, Zicom says, adding that “each of these choices has proven to have its limitations.”
New vessels install LNG-powered engines instead of diesel ones which is why Zicom expects a “strong” growth prospect for this technology, it said.