DNV supports Hapag-Lloyd’s milestone green financing

Written by Nick Blenkey
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Hapag-Lloyd's Ballindam, Hamburg headquarters

As we reported earlier, Hapag-Lloyd has secured green financing for six containerships on order for delivery from South Korea in 2024.

Hapag-Lloyd obtained the favorable financing with the support of DNV which verified that the transactions met the requirements of the Loan Market Association (LMA).

“Our first green financings are a major milestone for us, as we are breaking new ground in the container shipping segment by financing newbuilding projects geared towards sustainability,” said Mark Frese, CFO of Hapag-Lloyd. “The transactions will help us to modernise our fleet while further reducing our CO2 footprint at the same time. In addition to enjoying our constructive collaboration with DNV on this project, it was also very helpful – especially with regard to the formal requirements for preparing a secondary opinion and the technical specifications of the vessels.”

“We were very pleased to have been asked by Hapag-Lloyd to offer our independent expertise to assess whether the vessels meet the Green Loan criteria,” said Shaun Walden, Project Director, Sustainability and ESG Services, DNV. “This is a ground-breaking deal that shows that the industry can move towards greater sustainability hand-in-hand with improved commercial performance of the asset.”

“Based on their hydrodynamic optimization, very efficient main and auxiliary engines and use of LNG as their main fuel, these vessels can meet all the criteria required,” said Jan-Henrik Hübner, Global Head of Shipping Advisory Practice at DNV Maritime. “Furthermore, with the ability to run on bio- and synthetic-LNG once these fuels become more widely available, they offer an example of how vessels can reduce carbon intensity now, while being ready to move to a lower or zero carbon future.”

As a result of the highly efficient high-pressure LNG dual-fuel engines, the six newbuildings will have CO2 emissions approximately 15 to 25% lower than a comparable conventionally-fueled vessel. This means that in addition to the requirements of the LMA’s Green Loan Principles, the ships will also satisfy the screening criteria set for sea and coastal freight water transportation under the EU Taxonomy for sustainable activities.

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