Credit agency Export Finance Norway (Eksfin) has revealed it is backing shipping's green transition with loan guarantees worth nearly NOK 10bn ($1.2bn) for 35 new vessels.
The agency, which was formed by merging Export Credit Norway and Norwegian Export Credit Guarantee Agency (GIEK) on 1 July, says the eco ships will be delivered over the next four years.
"Our job at Eksfin is to promote Norwegian exports globally and boost the financial capacity of Norwegian industry," said Eksfin chief executive Tone Lunde Bakker.
"In the shipping space we are helping shipowners, shipyards and equipment sub-suppliers to finance an increasing number of vessels featuring alternative fuels or new technologies that reduce harmful emissions," she added.
Lunde Bakker pledged to continue to pursue projects with a strong environmental profile that reflect the industry trend towards more sustainable operations.
Backing for Ponant was crucial
One of Eksfin's vessel projects is the 31,300-gt Le Commandant Charcot, a polar exploration cruiseship recently delivered to French cruise line Ponant by Norwegian shipbuilder Vard.
Vard won the Ponant contract thanks in part to Eksfin’s state-backed loan and risk guarantees, the agency said.
"I am very proud of Eksfin’s involvement in securing this project for one of Norway’s top maritime exporters. Our export financing package was important in influencing the shipowner’s choice amid fierce competition between shipbuilders in Finland, Germany and Norway," Lunde Bakker said.
Eksfin provided a loan of €162.4m ($192m) for the ship, in cooperation with French banks, as well as risk guarantees of €182.7m.
The agency has also contributed to the financing of six other expedition cruiseships also built by Vard for Ponant.
First hybrid LNG cruiseship
But the seventh newbuilding is the world's first hybrid-electric, LNG-powered vessel with icebreaking capacity.
Ponant estimates that using LNG will reduce emissions of sulphur oxide by 95%, nitrogen oxide by 85% and carbon dioxide by 25%, compared woth conventional ships.
Battery technology is provided by Norway's Corvus Energy.
Ponant will deploy the 245-passenger ship on polar cruises to the Arctic and Antarctica.
The vessel is also equipped with research facilities that will enable the scientific community to study and analyse water, air, ice and biological diversity at the extreme poles.
Le Commandant Charcot will access some of the world’s remotest spots, including the geographic North Pole.
Eksfin has also financed green ship projects for cruiseship and ferry company Hurtigruten, ferry operators Norled, Boreal, Color Line and Fjord1, and Altera Shuttle Tankers, which ordered LNG-powered tankers with volatile compound emissions recovery.
"Our new Eksfin structure makes it much easier and simpler for shipping customers and exporters to access advisory services and state-backed financing for complex projects," said Lunde Bakker.
