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German shipbuilder Flensburger-Schiffbau-Gesellschaft (FSG) has signed a contract with the Australian shipping company SeaRoad to construct an 181-metre-long ro-ro ferry to be powered by liquefied natural gas (LNG).

"FSG and SeaRoad have been working intensively over the past years on this project which can now successfully move on into a new phase with the signing of this contract," FSG said in a statement.

Peter Sierk FSG managing director commented: "On the one hand, our shipyard is to deliver a ship to Australia for the first time ever. On the other hand , this new building demonstrates yet again the high-level competence of our yard and our innovative capabilities. We are very proud that SeaRoad has chosen us and that our ideas have prevailed over those of international competitors. We look forward to continuing the good and intensive co-operation we already enjoy with SeaRoad and which has been characterised over the the time by great trust, professionalism and by our mutual focus on finding innovative solutions."

Once completed, the vessel is set to provide a regular liner service between Melbourne on the Australian mainland and Devonport on the island of Tasmania.

According to FSG, the ferry will boast a "particularly flexible" cargo carrying capability and be in a position to transport containers, including reefer units, trailers, cars and hazardous cargo as well as live animals such as cattle.

"She will be the first ro-ro ferry in the world able to transport reefer containers and hazardous cargo side by side. This will be made possible by a special concept developed by FSG," the German shipbuilder said.

Sierk remarked: "This liner shipping service will be of existential importance in supplying Tasmania with its basic essentials. That is why SeaRoad decided to commission a shipyard which can deliver quality, high-value vessels which guarantee trouble-free, reliable liner shipping."

Commenting on LNG propulsion, Sierk said: "LNG operation is currently the cleanest fuel combustion process in existence. The emission of sulphur oxides (SO2) and dust is almost nil while that of nitrous oxides (NOx) is also reduced by nearly 100 percent and that of carbon dioxide (CO2) by about 20 percent."

The new ferry's liquefied natural gas will be taken on board the ship in mobile tanks during regular ship loading and unloading. Once on board, the tanks will be secured and become fixed ship fuel tanks without the need for any transshipment thanks to a special locking system also developed by FSG.

The newbuild will be 181 metres long, 26.6 metres wide and have more than 1960 lane metres available.

Construction of the vessel is scheduled to commence in 2015. Delivery of the completed ship is expected in the third quarter of 2016.