SAN JOSE, CA / ACCESSWIRE / August 28th, 2018 / Pacific Green Technologies Inc. ("PGT") (OTCQB: PGTK), owner of the ENVI-Marine™ Exhaust Gas Scrubbing System (System), has in conjunction with PGT’s Joint Venture partner PowerChina SPEM developed an innovative fleet management agreement for Ship Owners to reserve production slots for their vessels on either a Fabrication or Fabrication plus Install basis (Fleet Management Pricing Agreement).
The Fleet Management Pricing Agreement enables Ship Owners to fix pricing for their fleet based on each vessel’s exhaust gas emissions (the Pricing Curve) in situations where the Ship Owner does not yet know the phasing of System installs on their Fleet (on a vessel by vessel basis). The Fleet Management Pricing Agreement enables the Ship Owner to optimise chartering opportunities while at the same time ensuring they will be compliant with the new IMO Regulations (for SOX emissions) to be enforced on 1 January 2020 (IMO Regulations).
PGT will reset the Pricing Curve every 60 days to reflect increasing capacity constraints in both Manufacturing and Shipyard space due to the stricter IMO Regulations and the substantial increase in market demand for the System and for scrubbers in general. The Pricing Curve will next be reset on 1 September 2018 and every 60 days thereafter.
Neil Carmichael, PGT’s Chief Executive commented:
“The Fleet Management Pricing Agreement enables charterers and ship owners maximum flexibility as they can commit on the quantity of vessels but have flexibility to specify the exact ships much later with the substantial benefit of locking in advantageous pricing now.”