DNV supports landmark green funding for Hapag-Lloyd
DNV helped Hapag-Lloyd secure financing for six of its new builds of highly efficient container ships in accordance with the Green Lending Principles of the Loan Market Association (LMA). DNV has verified that the transactions meet the program requirements.
The decarbonisation of the world economy is the great challenge of the coming decades. Shipping is no exception and pressure is mounting from regulators, financiers, customers and the general public for ship owners and operators to reduce emissions to air and water. As a trusted independent partner of the maritime industry, DNV responds to the needs of our customers and provides practical advice on all aspects to help their ships and fleets become more sustainable.
Hapag-Lloyd completed two first transactions in accordance with the Loan Market Association (LMA) Green Lending Principles, and DNV provided a second opinion to confirm compliance with the requirements as an independent expert. The transactions are associated with the financing of six ultra-large 23,500 TEU container ships, which were ordered in December 2020.
“Our first green finance is an important milestone for us as we innovate in the container shipping segment by funding new construction projects with a focus on sustainability,” said Mark Frese, CFO of Hapag-Lloyd. “The transactions will help us modernize our fleet while further reducing our CO2 footprint. In addition to benefiting from our constructive collaboration with DNV on this project, it was also very useful, especially with regard to the formal requirements for the preparation of a secondary opinion and the technical specifications of the vessels.
“We were very pleased to have been invited by Hapag-Lloyd to offer our independent expertise to assess whether the vessels meet the criteria for the green loan,” Shaun Walden, Project Director, Sustainability and ESG Services, DNV. “This is a revolutionary agreement that shows the industry can evolve towards greater sustainability along with improved business performance of the asset.”
“Based on their hydrodynamic optimization, highly efficient main and auxiliary engines and the use of LNG as the primary fuel, these ships can meet all the required criteria,” said Jan-Henrik Hübner, Global Head of Shipping Advisory Practice at DNV Maritime. “Plus, with the ability to run on organic and synthetic LNG once these fuels become more widely available, they provide an example of how ships can reduce carbon intensity now, while still being ready to switch to a a lower carbon or zero carbon future. “
Thanks to the highly efficient high-pressure LNG bi-fuel engines, the six new vessels will have CO2 emissions that are approximately 15 to 25% lower than those of a comparable conventional fuel vessel. This means that in addition to the requirements of the LMA Green Lending Principles, vessels will also meet the technical selection criteria of the EU taxonomy for maritime and coastal sea freight transport. State-of-the-art vessels are being built in South Korea and are expected to be delivered in 2023.