Penguin’s pragmatic approach to decarbonisation and fleet expansion

Expanding in Middle East and Africa

Mr Philip detailed Penguin’s crewboat fleet expansion plans. Speaking of the Middle East and Africa, he said: “We are slowly building up our own fleet of crewboats in these regions. “Penguin is unique in that we continuously build stock crewboats for sale to third-party owners and for our own charters," he said.

Penguin’s proprietary crewboat designs are the Flex-40X and Flex-42X, each of which can carry 70 or more passengers in business class seating, with large clear aft decks, equipped with fuel monitoring systems. Another popular design is the Flex Fighter Max, a 40-m security boat built with ballistic protection and gun mounts.

“We’ve proven ourselves and we are very cost competitive”

A milestone for the company was the delivery last year of a pair of 56-m ropax ferries for the Integrated Transport Centre, an affiliate of the emirate’s Department of Municipalities and Transport in Abu Dhabi. With the capability to transport up to 192 passengers and 25 vehicles at speeds of up to 39 knots, Jazirat Dalma and Al Dhannah are now operating on the 42-km route between Dalma Island and Jebel Dhannah on the UAE mainland.

Mr Philip is confident Penguin will secure more such ferry orders against global competitors: “We’ve proven ourselves and we are very cost competitive.”

Hybrid crewboats and CTVs

Penguin continues to lean into vessel electrification – a key technology for reducing fuel consumption, increasing efficiency, and lowering CO2 and greenhouse gas (GHG) emissions. “We are building hybrid crewboats. Right now, two are operating in the Middle East, and we are building several more,” said Mr Philip.

“We are one of a very few crewboat owners who are intentionally building hybrid crewboats without expecting a premium for their charters," said Mr Philip. He said right now, charterers are “not really willing to pay a premium for a hybrid crewboat.” But he feels that could change once they see the cost savings in fuel consumption. “It will start to nudge them in the right direction,” he said.

Despite the delay in the adoption of IMO’s Net-Zero Framework, Penguin’s approach to decarbonisation remains “pragmatic and grounded,” said Mr Tham.

“Decarbonisation is hard: it calls for a fundamental change in mindset.” He does not view the delay as a death knell for the Net-Zero Framework. “There are still countries and companies that are progressing on lowering their emissions. They have not changed their view just because of the setback for the Net-Zero Framework.”

He cited Northern Offshore Services (NOS) as an example: “They are leaders in their field and are voluntarily advancing their own efforts on decarbonisation.”

According to industry sources, last September, NOS ordered from Penguin close to a dozen 36-m E-Class hybrid CTVs, designed to support the transition from diesel to electric and alternative fuels.

Penguin’s own commitment to lowering CO2 and GHG emissions in its vessel designs, operations and production facilities is clear.

“We are one of the few builders and operators that are building hybrid and other technologies into our vessels for decarbonisation and not expecting a premium from the market for doing so,” he said.

Thanks to Penguin’s investments in solar power, 80% of the Singapore shipyard’s electricity is from renewable energy.

On the human capital front, Penguin recently completed a modern 400-person dormitory at its Tuas shipyard for its own workforce. The company highly values its workers’ welfare and workplace safety.

At sea, Penguin’s Flex series of crewboats are built and fitted out with crew and passenger comfort in mind.

“When we talk about sustainability, it is not just about the environment. To make your business sustainable, it’s about people, too. It means taking care of your key assets – that’s your people,” said Mr Tham.