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Algoma Central Corp
Symbol ALC
Shares Issued 38,912,110
Close 2014-10-31 C$ 16.06
Market Cap C$ 624,928,487
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Algoma receives Equinox exhaust system certification

2014-10-31 10:48 ET - News Release

Mr. Greg Wight reports

ALGOMA CENTRAL CORPORATION - EQUINOX CLASS SCRUBBER SYSTEMS RECEIVE CERTIFICATION

Algoma Central Corp. has received all requisite approvals of its exhaust gas scrubbing systems installed on its Equinox Class of vessels. The scrubber units, manufactured by Wartsila, are designed to remove 97 per cent of sulphur oxide emissions generated by vessel engines. The scrubber concept works with fresh water recirculating in a closed-loop system. Sulphur oxides are washed out of the exhaust then neutralized. Contaminants are disposed of at reception facilities in port. All vessel emissions meet exacting IMO, United States EPA and Canadian regulatory standards.

Commissioning of the first scrubber unit installed on the Algoma Equinox, the first built of the eight vessel series, was completed by a team from the manufacturer Wartsila, together with Algoma technical and shipboard personnel during this past summer and the system underwent rigorous testing in early September, 2014.

"Testing confirmed the scrubber's effectiveness at removing 97 per cent of the sulphur oxide emissions from all engine exhaust streams on-board the Algoma Equinox," said Rob Houston, Algoma's director, technical. He added, "The approvals apply to each of the seven other Equinox Class ships, including two CWB-owned ships." Commissioning of the scrubber on-board the Algoma Harvester, the second Equinox Class ship to arrive, has commenced. The third Equinox Class arrival will be the CWB Marquis, due to arrive in Canada by the end of this year.

Greg Wight, president and chief executive officer of Algoma, said: "We are extremely pleased to have the first unit commissioned and approved for use. Equinox Class ships are not only the most fuel-efficient ships operating on the Great Lakes, they are now the cleanest."

Mira Hube, Algoma's director, environment, said, "Equinox Class vessels are helping us to achieve our strategic objective to improve the energy efficiency of our fleet and now also to significantly reduce our environmental footprint through the use of these scrubbers."

Equinox Class ships have been designed with high-efficiency hulls that will require less horsepower to achieve higher speeds than any previous Great Lakes design and thus achieve the lowest fuel consumption and emissions per tonne/kilometre of cargo carried, an improvement of 45 per cent over existing ships owned by Algoma. The Equinox Class series includes four gearless bulk carriers, two of which are owned by the CWB but operated and commercially managed by Algoma, plus four self unloaders. By the end of 2014, three Equinox Class gearless bulkers will have been delivered with the fourth gearless bulker coming early in the 2015 navigation season. The first two Equinox Class self-unloaders are expected to arrive later in 2015 with the remaining two self-unloaders arriving in 2016.

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