The CEO of STX France has revealed that Brittany Ferries are struggling to raise the required finance for the PEGASIS project, with the deadline looming near.  This comes as SNCM appear to no longer be able to proceed with their planned order for LNG ships following a failure to extend their letter of intent, also with STX France.  It appears those of us who had doubts about the amounts of money involved and the scale of these projects may have been right to have these doubts.

http://www.saintnazaire-infos.fr/stx-l-etat-tombe-le-masque-la-sncm-ne-pourra-pas-commander-ses-quatre-navires-pour-renouveler-sa-flotte-25-52-2798.html

The CEO of STX France has revealed that Brittany Ferries are struggling to raise the required finance for the PEGASIS project, with the deadline looming near.  This comes as SNCM appear to no longer be able to proceed with their planned order for LNG ships following a failure to extend their letter of intent, also with STX France.  It appears those of us who had doubts about the amounts of money involved and the scale of these projects may have been right to have these doubts.

http://www.saintnazaire-infos.fr/stx-l-etat-tombe-le-masque-la-sncm-ne-pourra-pas-commander-ses-quatre-navires-pour-renouveler-sa-flotte-25-52-2798.html

Some more on this.  It would appear that the deadline has now passed.  I understand that STX France have a very full schedule and the ship would have needed to have been confirmed by the end of June in order to be completed in time for the next build to commence - she was sandwiched in between two other orders.  This Google translation isnt great but you can get the gist of whats being said.

rittany Ferries: Ordering the new ship can it go down the drain?
06/27/2014

Folder (s): Brittany Ferries STX FRANCE (Chantiers de Saint-Nazaire)

The site of Saint-Nazaire, more concern about the project can not Pegasis cache. This is the largest ship with a propulsion LNG STX France must build for Brittany Ferries ( see our detailed article on the project ). The construction of the "I34", as it is called in the estuary of the Loire, was announced in January and has been a firm order, with delivery scheduled for late 2016. But it depends, as with any contract of this type, the closure of the financial package. However, the period during which the owner must finalize financing of the order expires in the next few days (the deadline is at the end of June). And Brittany Ferries has not raised the necessary funds to launch this investment of € 270 million. Ideally, one could imagine that the site leaves his client a few more months to complete the record. Except that Saint-Nazaire, now there is urgency, the workload of the site is being replenished in recent months, with the order by Royal Caribbean Cruises Ltd and MSC Cruises three giant liners (for RCCL B34, E34 and F34 for MSC), delivered in 2017, 2018 and 2019. Pegasis The hull must therefore necessarily pass before that of E34, or it will return to its construction later. "We can not wait because in our workload, we just behind (Pegasis) the two vessels to MSC. If Brittany Ferries can not get the funding in place quickly, there will be only two options: either stop the contract or the push of a year, "recognizes the direction of the site.
Funding boats arms Breton
It is the collective interest Agricultural Society of Saint-Pol-de-Leon, who is the project financially. Gathering the producers in northern Finistère, SICA's memory to the origin of the creation in 1972 of Bretagne Angleterre Irlande (BAI), which became the Brittany Ferries on. The Leonards farmers had then had a brilliant idea, driven by Alexis Gourvennec, based maritime armament originally intended to develop the export of their production of vegetables to the British Isles. Very quickly, the company has also developed the segment of passengers, becoming a key player for the transport in France for British holidaymakers. Important economic vector, both at the farm level and in general cargo and tourism, with every conceivable impact on the regions served, Brittany Ferries has long relied on local authorities to expand its fleet. Different companies of mixed economy were created with the regions, Brittany, Normandy and the Pays de la Loire time to buy new ships, properties of SEM and were then leased to the company. A formula that offers the particular advantage to reassure banks, regions representing alone make a guarantee for the repayment of loans when ordering boats.

The absence of the government guarantee and the spectrum of the sulfur directive?
However, in this case, public authorities, whose budgets are very tight today, are not engaged in financing Pegasis. SICA is alone liable to pay the new building, incidentally the most expensive in the history of the company. The lack of public participation and the guarantee that it is from banks, but also access via regional financial engineering very useful for the development of a banking turn table, they prevent Brittany Ferries raise € 270 million? While the company does everything to get Europe within two years to bring its fleet in accordance with the new regulations related to the reduction of sulfur emissions ( see our article on the subject ), applicable on 1 January 2015, it is also conceivable that financial institutions consider the strategy Brittany Ferries as hazardous. Although his arguments are more relevant, immediate transition to LNG propulsion is environmentally better, there is no assurance that the weapons get an exemption, and if this is not the case, it will be in a financial position very delicate. Finally, if the company was unable to raise the necessary funds to Pegasis, how she would be able to obtain the financing necessary to adapt its fleet? For the consolidation of Brittany, Pont Aven and Mont St Michel with LNG propulsion and systems integration wash smoke (scrubber) on Cape Finisterre, Normandy and Barfleur, will require a heavy investment. Certainly it is not as important as Pegasis, but still represents € 130 million to put on the table by spring 2017.

Brittany Ferries refuses to comment
These questions, we have asked Brittany Ferries, who did not wish to answer. Our colleagues are the Telegram, meanwhile, managed to join Jean-Marc Roue. The President of the armament was recognized, there is a ten days (when Brittany Ferries, supported by Shipowners France, has launched a new media offensive for its derogation from Directive sulfur) that the closure of the financial package was "complicated". He however noted that it was often the case, citing for example the acquisition of Cape Finisterre in 2010. But on June 18, the existence of a deadline so close was not known last night and face journalists now perfume, Jean-Marc Roue was not very talkative, "We have no comment to make. We are not here to comment on the remarks made by STX to the press. It is their responsibility, "he was merely responding to the Telegram. As at maturity revealed by the nearby Saint-Nazaire shipyard, are, he says, "information that does not have to be disclosed." Reaction a bit annoyed while STX France is nevertheless equally concerned with the realization of this project or not. Indeed, if Pegasis were to fall overboard or be postponed, it would be a blow to Brittany Ferries. But also to Saint-Nazaire since I34, whose construction should begin by year-end, representing 2.6 million hours of work for the site and its subcontractors. Abandonment or postponement would have a significant impact on the workload in 2015 and 2016. Besides this ferry is a major technological challenge for STX France. Indeed, it is with him that the French manufacturer is embarking on the growth market of LNG powered ship
www.meretmarine.com/fr/content/brittany-ferries-la-commande-du-nouveau-navire-peut-elle-tomber-leau

Its a pity they couldn't do a bit of the old joint effort. P&O wouldn't be a bad partner (much of the P&O fleet is 20+ hence in the next 10 years will need replacing). BF and P&O as ye know were in competition back in the 90s, but with P&O's withdrawal from Portsmouth, and recognition of BF's 'turf', and vice a versa BF recognising P&O's stomping ground, I doubt co-operation would be a negative.

All the same, co-operation with Stena for the additional finance / stake in the project, could help bridge the gap. It would be useful for both operators, especially Stena given the age of a lot of vessels (cough... Stena Europe... cough Stena Danica... cough Stena Saga... ect).

Its a pity they couldn't do a bit of the old joint effort. P&O wouldn't be a bad partner (much of the P&O fleet is 20+ hence in the next 10 years will need replacing). BF and P&O as ye know were in competition back in the 90s, but with P&O's withdrawal from Portsmouth, and recognition of BF's 'turf', and vice a versa BF recognising P&O's stomping ground, I doubt co-operation would be a negative.

All the same, co-operation with Stena for the additional finance / stake in the project, could help bridge the gap. It would be useful for both operators, especially Stena given the age of a lot of vessels (cough... Stena Europe... cough Stena Danica... cough Stena Saga... ect).

Stena have their own ideas to work with.  I really like the methanol idea myself and hope it is a success.  The Stena fleet may be ageing but its generally well looked after, and the modernisation of Spirit and Vision perhaps indicates they are willing to invest to extend the lives of their existing fleet until a time when the technology is more developed.  Much has been made of operators increasing prices to cover additional fuel expense but the additional capital to purchase or upgrade vessels also has to come from somewhere - ticket prices.

I have read that BF are to ask STX for another few weeks but given its already a tight schedule and some of the technology has yet to be developed its far from certain wether that would be possible.  Personally I think spending such a large sum on a single vessel with unproven technology is madness.  The French government will probably be under pressure to step in but I'm not sure what they can do without giving illegal state aid.  BF have been rather gung-ho in their approach to MARPOL IMO, though should be commended for taking decisive action rather than dithering.

By the time PEGASIS is built (if it is built) she could be outdated now the incentive is there for new technology to reduce emissions to be developed.  The infrastructure isnt even in place (or secured) to support such a vessel either as of yet.  For example there has been a lot of development in internal combustion engine technology over recent years.  Who would have thought 20 years ago a family car could be powered by a 0.9l petrol engine?  Or a double decker bus by a 5l diesel engine even 5 years ago (when 7l was considered too small by some).  The incentive for manufacturers to develop such technology was due to emissions legislation and the need to reduce fuel consumption, - the same incentive the marine industry is now facing.  There's also further opportunity to optimise hull forms and the like to reduce drag and hence fuel consumption and consequently emissions.  There's also bound to be technology which can crossover form the aeronautical and space industries to further increase efficiencies.

Brittany Ferries vessels face time out of service
The Poole-Cherbourg Barfleur ferry will be out of service from mid-March 2015 to mid-May 2015

Six ferries are to be taken out of service at various points over the next three years as part of a £320m improvement programme.

Brittany Ferries said its Normandie, Cap Finistere and Barfleur vessels were to be fitted with exhaust filters in order to reduce sulphur emissions.

Mont St Michel, Armorique and Pont-Aven will be converted to run on liquefied natural gas.

The ships link Portsmouth, Poole and Plymouth with Spain and France.

The work to fit "scrubbers" to reduce sulphur emissions will cost between £7m and £10m per ship and is needed to comply with EU regulations.

Brittany Ferries said it had planned the work for quieter periods and advised customers to consider using alternative ports and destinations.

The ferries will be out of service from:

Normandie (Portsmouth-Caen): Mid-October 2014 to end December 2014*
Cap Finistere (Portsmouth-Bilbao/Santander): Mid-January 2015 to mid-March 2015
Barfleur (Poole-Cherbourg): Mid-March 2015 to mid-May 2015
Mont St Michel (Portsmouth-Caen): September 2015 to December 2015
Armorique (Plymouth-Roscoff): January 2016 to May 2016
Pont-Aven (Portsmouth-Santander/Plymouth-Santander/Plymouth-Roscoff/Cork-Roscoff) - November 2016 to March 2017
*The high-speed Normandie Express ferry will operate the Poole-Cherbourg route from 30 April-14
http://www.bbc.co.uk/news/uk-england-28832825

Any idea where the work will be carried out? I'm guessing Poland or France.

Remontowa in Gdansk would be my guess , but only a guess.

I think I read STX France where doing some of the work somewhere, though could be wrong.  Remontowa would have been my guess as well though, especially given they have expertise in this field as well.  Still can't help feeling that a lot of money is being potentially wasted on a largely unproven technology in this application.

Given the DFDS Baltic Fleet, I am dreading the Brittany Ferries future look!!! (shudders)

Given the DFDS Baltic Fleet, I am dreading the Brittany Ferries future look!!! (shudders)

Given Brittany Ferries attention to detail on their ships I would expect to result of their conversions to be easier on the eye than those of DFDS.

Looks like PEGASIS could be dead, with 2018 likely to be the delivery year IF finance is in place by the end of this year!

http://www.meretmarine.com/fr/content/stx-france-le-projet-de-brittany-ferries-suspendu

Given the DFDS Baltic Fleet, I am dreading the Brittany Ferries future look!!! (shudders)

Given Brittany Ferries attention to detail on their ships I would expect to result of their conversions to be easier on the eye than those of DFDS.

Well I sincerely hope you are right.

According to shippax, BF have now suspended all of their LNG plans.  The 3 ships which where to be converted to LNG will now have scrubbers fitted instead.

According to shippax, BF have now suspended all of their LNG plans.  The 3 ships which where to be converted to LNG will now have scrubbers fitted instead.

posted on

http://bfenthusiasts.com/forum/forum/brittany-ferries-forums/the-news-board/7625-the-cost-of-changing-fuel-from-2015-scrubbers-gnl-conversions/page15

From BF themselves, always thought the planned spend was ludicrous for retrofitting LNG to the fleet, would assume project Pegasis will not happen either for quite a long time, hopefully they will get the scrubbers a bit more integrated than DFDS have managed so far.....


‘Double penalty’ forces Brittany Ferries to suspend its LNG plans

Ferry operator Brittany Ferries has been forced to suspend its plans to upgrade much of its fleet to operate on Liquefied Natural Gas (LNG). At the beginning of 2014, the company committed itself to an ecological transition plan in response to new regulations relating to sulphur emissions which will come into effect on 1st January 2015.

The plan included the installation of scrubbers (gas filters) on three ships, and the conversion of three newer ships to allow them to operate on LNG. It also included the construction of an LNG cruise-ferry.

However, the preconditions enabling the plan to be financially viable have not been met.

Brittany Ferries has worked tirelessly over recent years to convince governments of the desperate need for a temporary exemption from the new rules, contained within the revised MARPOL Annex VI.

However, with the January deadline fast approaching, it appears unlikely that such an exemption will be granted. This is despite Brittany Ferries’ ambitious plan going above and beyond what is required by the new rules, thanks to its reliance on LNG, which exceeds requirements concerning emissions of sulphur, CO2, nitrous oxide and particulate emissions.

The company is simply unable to bear the costs of the double penalty that would be incurred by this programme.

Jean Marc Roué, Brittany Ferries’ chairman commented, “It is impossible for us to commit to an ecological transition plan which requires such a high level of investment, when, due to the absence of a temporary exemption, we will also incur hefty additional annual costs amounting to tens of millions of euros, due to us being obliged to use diesel instead of heavy fuel oil until our ships have been converted.”

“We have worked tirelessly for a temporary exemption but these efforts have sadly been in vain. Without it, the economic viability of our LNG programme is in jeopardy. It is my duty to protect the company and its staff at a time when the European ferry industry is confronting numerous challenges.”

“All of our partners who have worked with us on this project have demonstrated the technical feasibility and the environmental benefits of this pioneering, futuristic technology. However I have taken the decision to suspend the LNG component of our ecological transition plan. It’s a decision I take with much regret and disappointment.”

Despite these difficulties, the company is still undertaking a wide-ranging, albeit less ambitious transition plan, which will meet or exceed what the requirements of the new rules. The scheme includes the installation of scrubbers on the three ships which it had planned to convert to operate on LNG, and represents an investment of 70-80 million euros.

Bretagne due in Cork at 11.30 Saturday for the last sailing this year on Cork Roscoff. Departing again at 14.30