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NYK to build its first methanol-fueled chemical tanker with green loan

NYK will 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.

International principals 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.

 

In the 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 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, said the release.

 

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