Royal Caribbean Cruises Signs MOU With Meyer Turku For More Eco-Friendly Ships, Provides Capex Figures

Royal Caribbean Cruises (RCL) unveiled late Monday a new line of more environmentally friendly ships through a partnership with shipbuilder Meyer Turku and provided capital expenditure figures through 2020.

The cruise line said its newest class of ships will be powered by liquefied natural gas and will introduce the use of fuel cell technology. It says the new ships will cut greenhouse gases and emissions.

Royal Caribbean said that it has signed a memorandum of understanding with shipbuilder Meyer Turku for the new class of vessel under the project name “Icon.” The vessels will be delivered in Q2 of 2022 and 2024. In the meantime, the company said, it will begin testing fuel cell technology on an existing Oasis-class ship in 2017, and will also run progressively larger fuel cell projects on new Quantum class vessels being built in the next several years.

Based on current ship orders, its projected capital expenditure for 2016 will be $2.4 billion, falling to $0.5 billion in 2017 and back up to $2.6 billion in 2018.

For 2019, it sees $1.5 billion and $2.0 billion in 2020, it said in a release late Monday. Capacity increases during the period remain unchanged.

By Bryan Smith