NYK will obtain 2 billion yen from Taiyo Life Insurance Company as a green loan to particularly invest in the building of NYK’s first methanol-fuelled chemical tanker.
A green loan is a kind of loan whose revenue are solely used for the purpose of funding environmental friendly projects. NYK will move towards the development and use of technology linked to environmental achievements by proactively encouraging green finance.
The company pointed out its goal to integrate ESG principles into management strategies to provide to the sustainable development of society and advancement of the company’s corporate value. In the mid-term management plan “Staying Ahead 2022 with Digitalization and Green” that NYK announced in March.
In May NYK became the first bird company in the international shipping world to issue classified green bonds, and they have been used to supply environment-friendly liquefied natural gas (LNG) fuelled vessels and other NYK projects. To approve investment in environmental technology more from a financial viewpoint, NYK decided to enter into this green loan agreement with Taiyo Life Insurance Company.
The Green Loan Foundation
Japan’s NYK has been approved a JPY2bn ($18m) loan from Taiyo Life Insurance Co. to solely finance the building of its first methanol-fuelled chemical tanker. The tenure of loan period is for 10 years starting 27 December 2018. The 49,000 – dwt new build chemical tanker will be built at Hyundai Mipo Dockyard with dispatch anticipated for 2019.
“Its methanol-fuelled main engine will lead to reduction in sulphur oxides (SOx) by nearly 99% compared with the use of heavy oil. In fact, the vessel’s entire SOx emissions, containing the electrical generator, will fall by about 75% when compared to the usage of oils that comply with low-sulphur oil regulations,” NYK stated.
Methanol – An economic alternative Marine fuel for the future?
Using methanol as a marine fuel helps meet the International Maritime Organization’s new regulations that cap sulphur content in marine fuels 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.