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TOTE Maritime

LNG-Fueled Ships Get $324.6M Loan Guarantee

TOTE MaritimeUS transportation secretary Anthony Foxx has announced a $324.6 million loan guarantee to TOTE Shipholdings to finance the construction of two liquefied natural gas-fueled container ships.

The vessels will be constructed at National Steel and Shipbuilding Company in San Diego, Calif.

As dual fuel vessels, primarily operating with LNG, but with light diesel as needed, the ships will be “the most environmentally friendly containerships in the world,” with engines that reduce the discharge of particulates to below the levels mandated by the EPA, the Department of Transportation says.

Expected to be delivered in 2015 and 2016, TOTE will operate the vessels between the Port of Jacksonville, Fla., and Puerto Rico, transporting containers, automobiles and other cargoes.

Shell, General Electric and Clean Energy Fuels this year began construction on the US’ first LNG fuel station for cargo ships in Jacksonville, Fla.

Strict new emissions regulations and plentiful natural gas are driving ship owners to switch from oil-based products to LNG.
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