Henrik Badin: We were originally founded in 1993 and we're a company that mainly works in the cruise industry, supplying process equipment for wastewater purification, waste management and food waste processing. Essentially, we supply environmental technology for shipowners to meet their environmental targets.
This is a process that purifies grey and black water to a very high level. We developed the systems in 2001-02 based on a Norwegian technology. Norway specialises in compact wastewater systems, which is useful because you need to be compact with a ship. Over the years, we've developed our Advanced Water Purification (AWP) technology to meet the new environmental standard that will be in force in the Baltic Sea from 2019 for new ships and 2021 for existing ones that need to be retrofitted.
The technology itself combines a moving-bed bioreactor with dissolved air flotation. The bioreactor removes oxygen-consuming matter and nitrogen, while the dissolved air flotation removes most of the particles and phosphorous. There's also a polishing filter for safety. If you compare this technology with a typical shoreside facility, you don't necessarily have all these treatment steps.
In 2013, we were the first company in the industry to have a system for large cruise vessels that could meet the new IMO environmental standards. To date, there is no other system available for large cruise vessels to meet this standard. Of course, this will change in the future, but I would say that Scanship has been ahead of the game, and this has led us to enjoy a very dominant position in the market since 2014. If you look at all cruise ships entering market from this year on, every second ship is equipped with Scanship AWP.
Our aspiration is to be the preferred partner for shipowners trying to meet environmental targets. We've been working on an offering that really makes an environmental impact on the ship's operation. Our latest project - which we've been developing for six years - is to advance a technology that can process waste streams, called microwave-assisted pyrolysis. Today, a shipowner is allowed to pump food waste and biological residue overboard, but we believe that we have technology that will encourage shipowners to process waste - because it's a source of energy production. We foresee a future where you don't just process waste to meet environmental regulations but also for fuel saving. This has been a very large development project for Scanship and we've made really good progress on this technology. We have plans to commercialise it next year.
We've learned to see cruise ships like a city. After all, a cruise ship with 5,000 people is comparable to a shoreside municipality of 25,000 or 30,000 people, due to the high loads. We've also learned that the cruise industry is pretty futureoriented. There's an all-time high building activity, currently driven by expected growth in Asia, as well as a large existing fleet that shipowners will keep maintaining.
We have seen the cruise industry as environmentally responsible to a certain extent deploying technology already from 2010 on standards being enforced from 2019. There is a lot of innovation. So we believe that the cruise industry has a lot of potential going forward. I have also learned that a system needs technology that not only meets environmental regulations but also processes waste efficiently and saves a huge amount of energy. That won't be accomplished today but it will be in the future