---

Singapore-based shipping firm Neptune Orient Lines has revealed that its subsidiary APL will be adopting a new advanced clean fuel system which the company expects will enable it to significantly reduce its bunker fuel costs by utilizing energy more efficiently.

On Wednesday APL is reported to have signed an agreement to collaborate with Russian firm Neftech in a ceremony held in Singapore.

APL is hoping that it will be able to cut its bunker costs by around 10 percent by using Neftech's new technology, which uses specialised equipment to add water to residual fuel to produce a highly efficient emulsified fuel for ships.

According to NOL chairman Cheng Wai Keung, the new fuel system will be installed on 20 of APL's vessels within the next year.

"In today's highly challenging business landscape, reducing costs, increasing efficiency and lessening environmental impact of our operations are among the biggest challenges we face," he said.

Neftech believes the technology will generate significant fuel savings on generators and main engines as well as reduce carbon emissions from ships.