NYK to build its first methanol-fueled chemical tanker with green loan
NYK will receive \2 billion from Taiyo Life Insurance Company as a green loan to exclusively finance the building of NYK’s first methanol-fueled chemical tanker. 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, the company said in a press release.
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 company in the global shipping industry to issue labeled green bonds, and they have been used to fund environment-friendly liquefied natural gas (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.
All the finance procured from this green loan will be used to build the new methanol-fueled chemical tanker. 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 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.
Outline of the ship
Deadweight Tonnage: about 49,000 tons
Length overall: about 183 meters
Breadth: 32.2 meters
Shipbuilder: Hyundai Mipo Dockyard Co. Ltd.
Delivery: Scheduled for 2019
