Vallianz Holdings, SeaTech sign MOU to build all-electric harbour tugs

OFFSHORE support vessel company Vallianz Holdings on Friday said it has signed a memorandum of understanding (MOU) with SeaTech Solutions International to "develop the next generation of environmentally friendly harbour tugs".

The MOU is valid for two years, unless mutually extended in writing by both parties, both companies said in a joint statement. The harbour tugs will be based on SeaTech's EVT-60 design.

These all-electric tug, or e-tugs, are designed to be powered by clean energy, with an aim of zero carbon emission. E-tugs can help reduce the shipping industry's carbon footprint over the coming decades as they allow vessel owners to comply with the 2030 and 2050 targets set by International Maritime Organisation (IMO), said the companies.

Govinder Chopra, director of SeaTech, said: "Technology for electric vessels is available, but the real challenge is to develop a cost-effective total logistics solution."

For this electric tug, SeaTech will be targeting a capital expenditure increase of only 20 per cent, with lower life cycle costs.

"The electric tug lends itself to digitalisation and future autonomous operations. We see this as the future of harbour tugs, and we are delighted to bring this technology to South-east Asia," said Mr Chopra.

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Upon completing development of SeaTech's EVT-60 design for the e-tug, Vallianz intends to utilise the group's shipyard to begin preparation works for potential clients and vessel owners who are interested in constructing an e-tug.

Darren Yeo, Vallianz's executive vice-chairman, said that the strategic partnership marks the company's first step into the development of electric vessels.

He added: "With the rise in demand for decarbonisation, coupled with the evolving digitised efficiency management systems for vessels, we foresee increasing requirements for electric vessels in the near future. We believe the partnership with SeaTech will showcase Vallianz's ability to diversify its strengths and constantly innovate as we work towards achieving long-term growth and sustainability."

Shares of Vallianz closed flat at S$0.051 on Friday before this announcement was made.