NYK Gets Green Loan for Methanol-Fueled Chemical Tanker
Japanese shipping giant Nippon Yusen Kabushiki Kaisha (NYK) has secured a green loan of JPY 2 billion (USD 18.04 million) to finance the construction of its first methanol-fueled chemical tanker set for delivery in 2019.
"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, said a press release from the 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, it said. International principals launched by the Europe-based Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA) in March 2018.
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.
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.