Germanischer Lloyd Signs new contract with DK Group -
Cooperation for a 200.000 TDW Bulker Project

Hamburg, 25 September 2008 - The development of energy efficient ship designs and the joint development of a 200,000 deadweight tonne (dwt) bulk carrier design was announced today by DK Group and Germanischer Lloyd (GL). Dr. Pierre C. Sames, GL Senior Vice President Strategic Research, Torsten Schramm, GL Senior Vice President Europe / Middle East / Africa and Chief Operating Officer, Jorn Winkler, DK Group Founder and Executive Vice President, and Christian Eyde Møller, DK's Chief Executive Officer, signed the contract today at SMM.

Based on the existing partnership the agreement will include DK Group's ground breaking Air Cavity System (ACS) technology, complementary hull optimization technologies as well as other emission reducing and energy optimizing technologies in the design.

Germanischer Lloyd will continue to provide technical advisory services and accompanying analyses of strength, dynamics and hydrodynamics for DK Group. A 3-D finite element (FE) model of the hull and deckhouse structure will be created. This FE-model constitutes the base for the following global strength analysis. Additionally, the analysis of wave load cases, the selection of design load, and the calculation of overall hull deflections and stresses for design load cases will be performed.

"We are currently working with DK Group and other partners on the design for a 200,000-dwt bulk carrier," said Dr. Pierre Sames. "For this newbuilding project, the focus will not be solely on air lubrication. Various innovations, such slow-running propellers, exhaust-gas scrubbers, optimized steering gear and improved lines are also to be included."

The collaboration also covers the verification and first investigations of the new and innovative propulsion train performed by GL and DK Group. This includes very slow running main engine with reduction gear, contra rotating propellers, twisted rudder, as well as exhaust gas economiser.

For the past two years DK Group and Germanischer Lloyd have worked together to develop ACS technology with Danish technology company FORCE Technology. Germanischer Lloyd has endorsed ACS technology with official Germanischer Lloyd systems certification following seven years of development and years of tank testing. "ACS has proved it can reduce carbon and other emissions for the shipping industry ", says Christian Eyde Møller, chief executive officer, DK Group. "It can save ship owners between $0.5m and $3m per year in bunker fuel costs at today's price levels.

To further demonstrate and document the potential of the ACS technology, DK Group has just concluded full-scale sea trials on the 2,550 dwt, 83-metre MPV, ACS Demonstrator. The trials have been conducted in association with Germanischer Lloyd, FORCE Technology and Lyngsø Marine. The results of the sea trial will be published shortly.

DK Group's patented ACS technology injects air into specially designed hulls, which reduces the frictional resistance of the hull surface against the water. A layer of air is generated between the hull and the water, allowing the vessel to effectively 'glide' through the water, reducing frictional resistance. ACS is able to provide a significant reduction in fuel consumption over any other known comparable vessel while simultaneously enabling a reduction in the vessel's CO2 emission. Ship owners will recoup the costs of ACS in between two to five years depending on the vessel type.

Germanischer Lloyd press release