VEEM Limited (ASX:VEE) Announces Launch of VEEM Extreme Marine Propulsion System with 18.1% Fuel Efficiency Gains

In a significant ASX announcement, VEEM Limited (ASX:VEE) has launched its most advanced marine propulsion technology, delivering unprecedented fuel efficiency improvements that position the company at the forefront of sustainable maritime solutions. The VEEM Extreme Range Launch represents a considerable milestone in marine engineering, addressing critical industry challenges around operational costs and environmental compliance through measurable performance enhancements.

VEEM Limited has officially introduced its VEEM Extreme propulsion package, marking the company’s most substantial technological advancement in marine propulsion efficiency. The integrated system achieved an impressive 18.1% reduction in fuel consumption compared to standard commercial configurations, with all performance testing witnessed and validated by Lloyd’s Register on VEEM’s dedicated test vessel.

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VEEM Extreme Propulsion Package: Core Components and Performance

The comprehensive approach to marine propulsion optimisation encompasses four critical components manufactured from VEEM’s proprietary high-tensile alloy. Each element has been engineered to work synergistically, creating cumulative efficiency gains that exceed the sum of individual improvements. Furthermore, the system delivers measurable performance enhancements across multiple operational metrics, providing commercial operators with immediate cost savings and speed advantages.

Mark Miocevich, Managing Director of VEEM Limited, commented on the development: “Today’s announcement is the culmination of a tremendous amount of engineering development which sees VEEM remain at the global forefront of the products it produces. We’ve engineered our most efficient inboard shaft driven propulsion system yet and have the witnessed data to prove it.”

The fully integrated propulsion system comprises four essential components:

• VEEM Extreme propeller: Features thinner blade profiles enabled by the advanced alloy technology, delivering enhanced hydrodynamic performance. Compared to industry-standard Class 1 propellers, the VEEM Extreme propeller achieved an 11.9% fuel reduction with speed improvements of 3.36 knots, reaching a top speed of 43.05 knots.

• Flow-aligned twisted rudder system: Incorporates NACA sections manufactured in the VEEM Extreme alloy. This component achieved 72% less drag and 6.2% less fuel burn than standard parallel plate rudders commonly used throughout the marine industry.

• V&P brackets: Designed in the VEEM Extreme material with flow-aligned geometry. These brackets will undergo testing in the near future, with further small gains anticipated.

• Complete shaft line package: Incorporates a proprietary registered design that reduces stress by 20% over standard shaft and keyway designs, permitting the use of smaller diameter components and contributing to overall system efficiency.

How does the new propulsion system address marine industry fuel costs?

Fuel costs typically represent 20-40% of total operating expenses for commercial marine vessels. Consequently, propulsion efficiency directly impacts operational profitability. The VEEM Extreme package addresses this through an integrated system approach, delivering an 18.1% fuel reduction compared to standard commercial configurations.

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The proprietary high-tensile alloy enables thinner blade profiles without compromising structural integrity, allowing engineers to optimise hydrodynamic performance. Furthermore, the flow-aligned design philosophy extends across all components to minimise energy losses and create cumulative efficiency gains.

What is the commercial validation for the VEEM Extreme system?

VEEM has secured early commercial validation through a successful partnership with Manly Fast Ferries. The ferry operator completed trials of the VEEM Extreme propeller, confirming the performance gains achieved during VEEM’s witnessed testing programme.

Following the successful trial, Manly Fast Ferries has committed to converting 6 additional vessels to VEEM Extreme propellers over the next 18 months. Contract negotiations are currently underway to finalise the commercial terms for this fleet conversion.

Additionally, Manly Fast Ferries has advised it intends to conduct a trial with the VEEM Extreme rudder as part of the propeller conversions, demonstrating growing operator confidence in the integrated system approach to maximise fuel efficiency gains across its operational fleet.

Why does this technology matter for environmental compliance?

The marine industry faces growing pressure from environmental regulations targeting emissions reduction. Technologies that form part of the VEEM Extreme Range Launch provide operators with practical solutions to achieve compliance whilst maintaining operational performance.

The 18.1% fuel reduction delivered by the complete system translates directly to reduced carbon emissions. This efficiency improvement supports compliance with increasingly stringent regulations, such as those established by the International Maritime Organization (IMO) for reducing greenhouse gas emissions from shipping.

Beyond regulatory compliance, the fuel efficiency gains provide immediate cost savings that improve vessel profitability, creating a compelling business case for technology adoption for investors and operators alike.

What manufacturing capabilities support the VEEM Extreme launch?

VEEM’s competitive positioning stems from its 50-year heritage in marine engineering combined with proprietary manufacturing capabilities. The company operates from a 14,700 square metre purpose-built facility that includes Australia’s largest non-ferrous foundry.

This foundry capability supports the production of the proprietary high-tensile alloy used in VEEM Extreme components, creating significant competitive barriers. The Perth facility houses specialised manufacturing equipment and employs approximately 195 staff, including a dedicated research and development team with specialists in marine engineering, metallurgy, and hydrodynamic design.

This in-house expertise supports both current production requirements and the ongoing technology development initiatives that have culminated in this investor update, securing VEEM’s position as a leader in marine propulsion technology.

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