NYK nets green loan for methanol-fueled tanker

Taiyo Life Insurance Co. is funding the project that is part of the shipping line’s medium-term management plan.
   NYK said Thursday it will receive 2 billion yen from Taiyo Life Insurance Co. as a green loan to finance the construction of its first methanol-fueled chemical tanker.
   Construction of the tanker is part of NYK’s medium-term management plan, “Staying Ahead 2022 with Digitalization and Green.”
   NYK said that in May it became the first company in the global shipping industry to issue labeled green bonds, which have been used to fund environmentally friendly LNG-fueled vessels and other projects. The 2 billion yen secured from Taiyo Life Insurance Co. will be used exclusively to build the new methanol-fueled chemical tanker. 
   NYK said the methanol-fueled main engine will reduce sulphur oxides by about 99 percent when compared with the use of heavy oil. 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, according to NYK.
   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, according to NYK, which said methanol is a clean-burning fuel that produces less nitrogen oxides and particulate matter, enabling more environmentally friendly operations.
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Kim Link Wills

Senior Editor Kim Link-Wills has written about everything from agriculture as a reporter for Illinois Agri-News to zoology as editor of the Georgia Tech Alumni Magazine. Her work has garnered awards from the Council for the Advancement and Support of Education, the Georgia Institute of Technology and the Magazine Association of the Southeast. Prior to serving as managing editor of American Shipper, Kim spent more than four years with XPO Logistics.