Tanker owners can’t call a $140m ship too old to upgrade, says BAR Technologies

In the world of tanker ownership, a $140 million price tag has been placed on a 15-year-old vessel, challenging the notion that upgrading older ships is not worth the investment, according to BAR Technologies CEO John Cooper. With new VLCCs (Very Large Crude Carriers) not set to be delivered until 2029, the majority of ships carrying the world's oil this decade are already in operation. This has forced tanker owners to reconsider their stance on retrofitting older ships.

Cooper argues that the market value of a 15-year-old VLCC is around $140 million, which is higher than the approximately $130 million price for a newbuilding ordered today and due for delivery in 2029. This newfound value makes retrofitting a more appealing option, as it can pay for itself in just four years through fuel savings alone.

Moreover, wind propulsion technology, such as WindWings, can significantly reduce a ship's fuel consumption and CO2 emissions, thereby improving its Carbon Intensity Indicator (CII) rating and maintaining its commercial viability as efficiency requirements tighten.

To support his claim, Cooper points to the example of the bulk carriers Pyxis Ocean and Berge Olympus, which were retrofitted with WindWings and recorded up to a 32% reduction in main engine energy use under favorable conditions. Additionally, Union Maritime has taken delivery of three WindWings-equipped LR2 tankers, with two more expected in 2027.

Cooper emphasizes that shipping has focused too much on the order book and that the ships needing to burn less fuel this decade are already sailing. He urges owners to consider the financial benefits of life extension instead of prematurely replacing older vessels.