Shipowner Stena Bulk AB and ProMarine AG and methanol producer Proman will launch shipping´s first methanol powered sustainable fund.
Stena Bulk AB and Proman´s energy transition investment advisory company ProMarine AG said it is setting up a Low Emission Methanol Shipping Company (Lemsco), with an initial portfolio of four methanol-fuelled MR tankers led by Proman.
The Fund is backed by equity investors and benefits from a green loan from ABN Amro. Lemsco’s seed assets consist of four methanol fuelled vessels acquired from Proman and Stena Bulk: Stena Pro Patria, Stena Pro Marine, Stena Promise and Stena Prosperous.
One of the advantages is that the Low Emission Methanol Shipping Company will benefit from a dedicated methanol supply contract from Proman, ensuring that its fleet operations are not cost-effective, and at the same time powered by the alternative fuel.
Abn Amro provided debt financing to the Fund, which was independently assessed against the LMA Green Loan Principles, and has been successfully designated as a Green Loan by DNV.
The second vessel in the Lemsco fleet, the 49,900 dwt tanker Stena Pro Marine, will have her naming ceremony in the port of New Orleans, showcasing the greenhouse gas reduction benefits of methanol fuel at one of the busiest cruise and cargo ports in the United States.
David Cassidy, chairman of the ProMarine board and chief executive of Proman, said: “We all recognise that the transition to sustainable shipping requires significant capital investment. By providing an alternative financing mechanism, Lemsco plays a crucial role in bridging this gap and facilitating the industry’s transition to lower emission fuels.”
Erik Hånell, board member of ProMarine and president and chief executive at Stena Bulk AB, shared his enthusiasm for this ground-breaking initiative, stating: “Through strategic collaboration and innovative green financing, we are shaping a new era of maritime operations, prioritising low-emission methanol as a viable alternative fuel. Lemsco represents a step towards meaningful change, enabling investors to support a greener, more sustainable shipping industry.”
Remco Jongkind, managing director Abn Amro said: “This transaction is the result of executing on our climate strategy to decarbonise the shipping sector whereby Lemsco is setting the example through the setup of a low emission fund.”
Video credit: Stena Bulk
