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Since January 2012, Neftech has begun installing cavitation technology equipment on 20 ships owned and operated by APL, a wholly-owned subsidiary of global container shipping, terminals and logistics group Neptune Orient Lines Limited (NOL). At a joint briefing last week, the companies said the technology, developed by Russian scientists, uses a fuel emulsification process that adds water to heavy fuel oil to produce a superior emulsified fuel for ships. HFO is the low-grade fuel used for powering the engines of ocean-going vessels. Cheng Wai Keung, NOL chairman, said: “In today’s highly challenging business landscape, reducing costs, increasing efficiency and lessening the environmental impact of our operations are among the biggest challenges we face. Neftech offers a strong value proposition.” Under the terms of the agreement, Neftech will bear the cost of installating its fuel-saving equipment on-board the 20 ships, with payment terms to be in the form of fuel savings and carbon credits to be shared with APL in an agreed ratio based on proven and documented cost savings. The installation programme is expected to be completed over the next 12 months.