Sign up
Log in Sign up
Fri 1 Jul 2016 09:39

Finnlines secures funding to retrofit scrubbers


EUR 50 million loan to be used to fund the company's Environmental Technology Investment Programme.

Finnlines, the shipping operator of ro-ro and passenger services in the Baltic and North Seas, has signed a EUR 50 million loan agreement to be used to fund its EUR 100-million Environmental Technology Investment Programme.

The loan, from the European Investment Bank (EIB), is guaranteed by Nordea Bank Finland Plc (Nordea), a Swedish financial services group, and a subsequent counter guarantee covering 80 percent is issued by Finnish Export Credit Agency Finnvera Plc (Finnvera), the Finnish state-owned financing company.

The aim of Finnlines' Environment Technology Investment Programme is to improve the fuel economy of their vessels by treating them with silicon anti-fouling to reduce hull friction as well as by reblading, and to reduce emissions by installing exhaust gas scrubbers. It is hoped that these measures will allow Finnlines to meet the stricter MARPOL sulphur emission regulations that came into force in the beginning of 2015.

Finnlines initiated the environmental programme in 2014 and to date 18 out of 22 ro-ro and ro-pax vessels are equipped with scrubbers, 7 have been rebladed and 2 repainted.

In May, when the company's first-quarter 2016 financials were issued, Finnlines said that operationally it had reaped the benefit of using scrubbers on board its vessels. In 2015, Finnlines' overall fleet fuel consumption decreased by over 8 percent compared with 2014 – a 75,000-tonne carbon dioxide (CO2) emission reduction. The company expects to complete the full programme by early 2017.

"We here at Finnlines appreciate greatly the Finnvera, Nordea and EIB cooperation in financing part of our EUR 100 million Environmental Technology Investment Programme," said Tom Pippingskold, CFO of Finnlines, on agreement of the loan. "Finnlines has the youngest, the most cost-efficient and environmentally friendly vessels and through this cooperation we can strengthen our operations in an even more sustainable way," he added.

The EIB's own investment target is to direct at least 25 percent of its lending towards climate related projects. According to Vice-President Jan Vapaavuori, who is responsible for EIB-operations in the Nordic countries, the co-operation between Finnlines' and the EIB is "an exemplary step" towards achieving their environmental goals.

LNG facility at Vestbase in Kristiansund. Molgas and NorSea Logistics reopen LNG facility in Kristiansund  

The reopened facility will supply LNG and bio-LNG to dual-fuel vessels operating in Norwegian waters.
Uyeno Transtech’s oil tanker Kikou Maru. Hydrogen-fuelled tanker achieves top rating in zero-emission programme  

Kikou Maru becomes first coastal vessel to secure financing under DBJ-ClassNK decarbonisation initiative.
TFG Marine participates in ARACON 2025 conference in Rotterdam. TFG Marine calls for ISO 22192 alignment in ARA MFM rollout  

Company urges consistency as Rotterdam and Antwerp prepare mass flow meter implementation.
Singapore skyline with Merlion and central business district. Peninsula renews $400m Singapore credit facility as part of $1.5bn funding capacity  

Bunker supplier extends banking arrangement with eight-bank syndicate, including accordion option.
Elenger Marine's LNG bunkering vessel Optimus alongside Brittany Ferries’ Saint-Malo. Titan delivers first liquefied biomethane to Saint-Malo ferry in Portsmouth  

Optimus tanker supplies Brittany Ferries' vessel with biomethane at UK port.
MOL participates in Ammonia Energy Association Annual Conference 2025. MOL outlines ammonia fuel strategy at Houston conference  

Japanese shipping company discusses terminal acquisition and dual-fuel vessel plans at industry gathering.
Gasum's LNG bunkering vessel Coralius. Gasum highlights how bio-LNG fleet generates compliance surplus  

Energy firm's four gas-powered vessels generate regulatory surplus for pooling service participants.
Monjasa Reformer bunker tanker. Monjasa secures NATO fuel supply contract across five operational areas  

Danish marine fuel supplier wins one-year framework deal with two-year extension option.
Lucia Cosulich keel-laying ceremony. Fratelli Cosulich lays keel for second methanol-ready bunker vessel  

Ceremony held to mark the beginning of the tanker's assembly phase.
GEFO's chemical tanker Gioconda. GEFO bunkers biofuel for first time as Gioconda runs on B100 UCOME  

German shipping company takes maiden step into biofuel bunkering with used cooking oil biodiesel.




 Recommended