Euronav NV announced a Joint Development Program (JDP) with Hyundai Heavy Industries (HHI) and classification societies Lloyd's Register and DNV, to help accelerate the development of dual fuel Ammonia (NH3) fitted VLCC and Suezmax vessels. The initial term of the JDP will be three years. construction of two VLCCs.

Euronav confirms that it has entered into new contracts for the building of 3 Suezmaxes and that is has lifted the option to build a third VLCC as per the Company's announcement made on 22 April 2021. All these newbuildings will be delivered in a staggered timing, enabling all parties involved to make concrete progress towards the development of ammonia-fitted tankers. Every vessel ordered is part of fleet rejuvenation program and is already outperforming any other existing vessels in terms of fuel consumption and emissions, and in particular the older vessels that will be phased out of the fleet because of their age profile.

In addition, the vessels will feature a gradual and increasing degree of readiness to be converted into dual fuel fully fitted Ammonia ships at a later stage, while retaining the possibility to convert them into dual fuel LNG vessels if it would make more commercial sense. The three firm Suezmaxes were contracted for a total cost of USD 199.2 million (USD 66.4 million each). The vessels will be delivered in the third quarter of 2023 and the first quarter of 2024.

Delivery for the lifted option VLCC would have been the second quarter of 2023. Euronav will meet the financing of this acquisition with existing liquidity and asset-backed debt capacity. The flexibility that these vessels offer can only be achieved by being close to the latest technological developments that are constantly coming onto the market.

As with any new technology, it is important to understand as much and as early as possible how to operate them in a safe, reliable, and efficient way. Shipping is at the start of an intense period. It needs to apply new technologies, while simultaneously addressing challenging emission reduction objectives and maintaining the higher safety standards.

The Joint Development Program brings together specialist parties to help accelerate these technological advancements. The program will ensure that Euronav and its partners gain control, yet retain flexibility in constructing future specifications for a new generation of crude tankers. Emissions compliance is critical to Euronav's stakeholders.

And with shipbuilding capacity likely constrained for the construction of large crude tankers until at least 2025, Euronav believes this will deliver the company a competitive advantage within its already established sustainability structure.