Japanese shipping giant NYK will receive 2 billion yen from Taiyo Life Insurance Company as a green loan to exclusively finance the building of NYK’s first methanol-fueled chemical tanker says NYK in a press release in its site.
What is Green Loan?
A green loan is a loan whose proceeds are used solely for the purpose of funding environment-friendly projects.
NYK will continue to take steps for the development and use of technology linked to environmental performance by proactively promoting green finance.
First company to issue Green Bond
In line with its medium-term management plan “Staying Ahead 2022 with Digitalization and Green”, in May 2018, NYK issued labeled green bonds in order to collect funds for its environmentally-friendly projects, including LNG-fueled vessels.
The move is in line with the ever more stringent environmental regulations in the shipping industry, including the upcoming 2020 sulphur cap.
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.
Green Loan Framework
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.
Its methanol-fueled main engine will reduce sulphur oxides (SOx) by approximately 99 percent compared with the use of heavy oil.
In fact, the vessel’s entire SOx emissions, including the electrical generator, will fall by about 75 percent compared with using oils that comply with low-sulphur oil regulations.
Using methanol as a marine fuel helps meet the IMO’s sulphur cap regulation coming into effect in 2020. Methanol is a clean-burning fuel that produces less nitrogen oxides (NOx) and particulate matter (PM), enabling more environment-friendly operation by NYK.
Ship information
The ship will be built by Hyundai Mipo Dockyard Co. Ltd. and will feature about 49,000 tons in dwt, measuring 183 meters in length overall and 32.2 meters in breadth. The vessel is scheduled for 2019 delivery.
Future environmental investments
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.
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Source: NYK
