receive 2 billion yen from Taiyo Life Insurance Company as a green loan to
exclusively finance the building of its first methanol-fueled chemical tanker.
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.
launched by the Europe-based Loan Market Association (LMA) and the Asia Pacific
Loan Market Association (APLMA) in March 2018.
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.
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, says a release.
medium-term management plan "Staying Ahead 2022 with Digitalization and
Green" that NYK announced in March 2018, 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
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.
investment in environmental technology more from a finance viewpoint, NYK
decided to enter into this green loan agreement with Taiyo Life Insurance
Company, said the release.