Tokyo-based investment company Anchor Ship Partners is plotting a huge spend on new eco-LNG carriers.
The shipping financier said on Friday that it is launching a ¥600bn ($5.65bn) fund to buy LNG-fuelled gas vessels for Japanese owners such as NYK Line, Mitsui OSK Lines (MOL) and K Line.
The goal is to help domestic operators reduce their carbon emissions.
Leaseback specialist Anchor also hopes to encourage power plants and other facilities to switch from coal and oil, the Nikkei news wire reported.
Japan is increasingly looking to renewables to make up a bigger share of its energy needs by 2050. Cutting shipping emissions by 86% is part of that plan.
Anchor is one of a growing number of institutional investors that are supporting decarbonisation efforts.
Other investments possible
The fund said it will eventually consider investing in other vessels that run on or carry green hydrogen or ammonia.
The company could also put money into related niches such as the production of hydrogen tanks.
Anchor is seeking cash from regional banks and other financial institutions for the fund. The aim is to provide double-digit annual yields, largely from leasing vessels to owners.
The fund has a planned life of 15 years. Sumitomo Mitsui Trust Bank will review the fund's environmental targets.
Anchor bought a 50% stake in NYK's cruise line — Asuka Cruise — in 2019 to help it grow the business.
Bulker ownership
VesselsValue lists Anchor as the beneficial owner of the MOL-operated, 61,500-dwt ultramax bulker Ocean Venus (built 2012).
Anchor set up its first fund in 2007 with an investment of ¥130bn, following this with another ¥200bn raise in 2011.
The company was established by bankers handling ship finance at what is now Mizuho Bank.
Third and fourth funds were launched in 2014 and 2017, widening the scope to direct investment in vessels, shares and other shipping assets, the company said on its website.
Anchor also works with banks to restructure "dysfunctional" financing schemes.
