ITT’s Svanehøj Awarded Contract for Cryogenic Deepwell Pumps on First Ammonia-Fueled Bulk Carriers
ITT announced a strategic agreement through its Svanehøj business to supply cryogenic deepwell pumps for the first ammonia-fueled bulk carriers. Acquired by ITT in January 2024, Svanehøj will provide pumps for eight vessels owned by a major maritime group. These pumps are compatible with multiple liquefied gas fuels, including LNG, LPG, methanol, and ammonia, supporting the green energy transition.
The first deliveries will occur in 2024, with the remainder in 2025. This contract is expected to drive long-term growth, supporting ITT's sales in green solutions, currently 16% of annual revenue. Svanehøj's expertise in green applications and a strong order backlog position ITT well for future growth, bolstered by regulatory pressures for emissions reduction in marine vessels.
ITT’s Industrial Process segment, including Svanehøj, generated $1.1 billion in revenue in 2023. The new contract aligns with the International Maritime Organization’s “Net-zero by 2025” strategy.
- Strategic agreement for cryogenic deepwell pumps on ammonia-fueled bulk carriers.
- Supports green energy transition with pumps compatible with LNG, LPG, methanol, and ammonia.
- Expects long-term growth, with green solutions making up 16% of annual revenue.
- First deliveries in 2024, with full order completion by 2025.
- Svanehøj's strong order backlog and expertise in green applications bolster future growth.
- Alignment with IMO's “Net-zero by 2025” strategy.
- None.
ITT Inc.'s strategic contract for Svanehøj's cryogenic deepwell pumps on ammonia-fueled bulk carriers is a noteworthy development for several reasons. Firstly, the contract signals a substantial revenue opportunity, with deliveries extending through 2025. This is an indication of predictable revenue streams, which adds financial stability and visibility for the company. Additionally, the assertion that green solutions account for
From a financial perspective, this contract also enhances ITT’s competitive positioning in the marine sector, especially concerning the IMO’s “Net-zero by 2025” strategy. Investors should note that the move positions ITT to benefit from increased regulatory pressure on ship owners to adopt cleaner fuels. However, the long-term financial impact will depend on the successful execution of this contract and the scalability of such solutions to other segments.
The agreement for Svanehøj’s fuel pumps indicates a commitment from ITT to solidify its role in the maritime green energy transition. The dual fuel system in these bulk carriers is particularly significant, offering flexibility and future-proofing capabilities. For investors, this means ITT is not only catering to current regulatory requirements but is also preparing for long-term shifts in fuel usage within the marine industry.
The ability to handle a range of liquefied gas fuels, including LNG, LPG and ammonia, positions ITT well against competitors who may not have such versatile solutions. This versatility could become a significant competitive advantage as shipping companies seek solutions that offer flexibility and compliance with evolving environmental standards. This strategic positioning could help ITT capture more market share in the green marine fuel segment, driving long-term growth.
Svanehøj will provide deepwell ammonia fuel pumps for eight bulk carriers owned by a leading maritime shipping and logistics group as part of the contract. The pumps will deliver a highly reliable supply of fuel and are fully compatible with all liquefied gas fuels, including liquefied natural gas (LNG), liquefied petroleum gas (LPG), methanol and ammonia. This will drive long-term growth as sustainable fuels are widely adopted to reduce greenhouse gas emissions. The first two Svanehøj pumps will be delivered in 2024 with the remainder of the order fulfilled in 2025.
The bulk carriers are the first commercial vessels of this size capable of being powered by ammonia. They will be equipped with a dual fueling system: a traditional diesel oil system and a clean fuel system. Svanehøj fuel pumps will future-proof the vessels to handle ammonia and other sustainable fuels.
“Svanehøj continues to build trust with its customers through its experience in green applications, its flawless execution and rapid response times. Awards like this one provide strong recurring business and will bolster ITT’s sales for green solutions, which today represents approximately
The company is positioned for growth from emissions reduction regulations for marine vessels as part of the International Maritime Organization’s (IMO) “Net-zero by 2025” strategy under which ship owners and operators are expected to upgrade their fleets and invest in clean fuel technologies to comply with regulatory requirements. The company is benefitting from a large backlog driven by new ship builds with fuel systems powered by clean fuels and strong aftermarket revenue visibility due to compulsory scheduled vessel maintenance.
About Svanehøj
Svanehøj is a provider of pumps and aftermarket service with leading positions in cryogenic applications for the marine sector. Its products manage critical liquids and are widely regarded as the highest quality offering across multiple verticals.
Founded in 1928, Svanehøj employs ~400 highly skilled professionals and has operations in
About ITT
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial and energy markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in
ITT-O
View source version on businesswire.com: https://www.businesswire.com/news/home/20240711122607/en/
Media:
Phil Terrigno
+1 914-641-2143
phil.terrigno@itt.com
Investors:
Mark Macaluso
+1 914-641-2064
mark.macaluso@itt.com
Source: ITT Inc.
FAQ
What contract did ITT's Svanehøj recently secure?
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