On July 11, 2024, ITT Inc. (NYSE: ITT) announced a significant commercial agreement through its Svanehøj division, reinforcing its leadership in the transition to green energy. Svanehøj, acquired by ITT in January 2024, specializes in designing and manufacturing advanced cryogenic deepwell and submersible pumps for the maritime industry.
Under the agreement, Svanehøj will supply deepwell ammonia fuel pumps for eight bulk carriers owned by a prominent maritime shipping and logistics group. These pumps will ensure a reliable fuel supply and are compatible with a range of liquefied gas fuels, including LNG, LPG, methanol, and ammonia. This initiative supports long-term growth as the adoption of sustainable fuels increases to mitigate greenhouse gas emissions. Initial deliveries of two Svanehøj pumps are slated for 2024, with the remaining units scheduled for fulfillment by 2025.
These bulk carriers represent a pioneering step as the first commercial vessels of their size capable of utilizing ammonia as a primary fuel source. They will feature a dual fueling system, integrating both traditional diesel oil and clean fuel systems. Svanehøj’s fuel pumps will future-proof these vessels for handling ammonia and other sustainable fuel alternatives.
Luca Savi, President and CEO of ITT, emphasized the significance of this contract: “Svanehøj’s proven expertise in green technology applications, coupled with its exceptional execution and responsiveness, continues to earn the trust of our customers. Contracts like this one not only drive recurring business but also strengthen ITT’s position in the market for green solutions, which currently accounts for approximately 16% of our annual revenue. With orders secured through 2025, Svanehøj is well-positioned to capitalize on the energy transition, expanding our substantial and healthy backlog.”
ITT anticipates further growth driven by stringent emissions regulations for marine vessels, aligned with the International Maritime Organization’s (IMO) “Net-zero by 2025” strategy. This regulatory framework compels ship owners and operators to upgrade their fleets and invest in clean fuel technologies to comply with environmental standards. ITT benefits from a robust backlog supported by new ship builds featuring clean fuel systems, alongside strong visibility in aftermarket revenues due to mandatory scheduled vessel maintenance.
