As part of its commitment to environmental performance, Japanese NYK announced it will receive 2 billion yen from Taiyo Life Insurance Company as a green loan to finance the construction of its first methanol-fueled chemical tanker at Hyundai Mipo Dockyard Co. Ltd.
Methanol is a clean-burning fuel that produces less nitrogen oxides (NOx) and particulate matter (PM), enabling more environment-friendly operation by NYK.
The ship’s methanol-fueled main engine is expected to reduce sulphur oxides (SOx) by approximately 99% compared with the use of HFO. In fact, the vessel’s entire SOx emissions, including the electrical generator, will fall by about 75% compared with using oils that comply with low-sulphur oil regulations. Using methanol as a marine fuel also helps meet the IMO’s 2020 sulphur cap.
In the medium-term management plan “Staying Ahead 2022 with Digitalization and Green” that NYK announced in March, the company indicated its goal to integrate ESG principles into management strategies to contribute to the sustainable development of society and enrichment of the company’s corporate value.
In fact, in May, NYK became the first shipping company worldwide to issue labeled green bonds, and they have been used to fund LNG-fueled vessels and other NYK projects. To support investment in environmental technology more from a finance viewpoint, NYK decided to enter into this green loan agreement with Taiyo Life Insurance Company.
This green loan has been certified by Japan Credit Rating Agency Ltd. (JCR) to be aligned with the highest rank of “Green 1” of the Green Loan Principles.
NYK will promote green finance and continue its efforts to keep a wide range of stakeholders involved in the company’s proactive approach to environmental investment as the company makes efforts to contribute to realizing a sustainable society with technology that lessens environmental burdens.
In line with a generally greater awareness on the devastating impacts of climate change, more and more organizations secure green loans to fit environmentally purpose solutions. Earlier in December, Singapore-based shipping owner Quantum Pacific Shipping secured a US$40m Green Loan from the French bank giant BNP Paribas, to finance the purchase and installation of scrubbers for its fleet. The signing of this agreement is considered as the first green loan issued to a shipping company in Asia Pacific.
