“Green Financing” has been secured by UECC for its investment in the new generation pure car and truck carriers (PCTC) which have Battery Hybrid LNG Solution. This takes the Company ahead of the target of IMO to reduce the emission of carbon to 40% by 2030.
A contract has been signed by Nippon Yusen Kabushiki Kaisha (NYK) and Wallenius Lines jointly owned United European Car Carriers (UECC) for the construction of three new generation PCTC in collaboration with China Ship Building Trading Co., Ltd and Jiangnan Shipyard Group Co. Ltd.
Svenska SkeppsHypotek has given this “Green Financing” to UECC in the amount of about USD 70 million for 3 new vessels, the order for which is confirmed and is scheduled to be delivered from July 2021 and onwards. The “Green Financing” will help UECC reduce the borrowing cost.
“UECC has clear sustainability ambitions reducing harmful emissions and believe our new vessels will be an important step in this direction. This takes the company a further step in the right direction making our whole value chain, from vessel to finance, more environmental”, says UECC’s CFO, Thomas Thue.
The Battery Hybrid LNG Solution in the vessels will take UECC ahead of the 2030 carbon reduction target.
“This is a giant leap towards decarbonization, and unlike anything else that has been done previously in our industry, I believe, and something that we are extremely proud of” stated UECC’s CEO, Glenn Edvardsen.
The dimension of the vessels will be 169×28 meters. It will have the capacity to carry 3,600 units on 10 cargo decks, from which 2 decks are hospitable making the vessels very flexible. This will also allow them to fit in a range of high & heavy and break-bulk mafi cargoes that are cargo segments along with the cars. The vessels will also be featured with 160 metric tons quarter ramp for safe working load and a 20 metric tons safe working load side ramp and will be able to fit in 5.2 meters high cargo units.
Some the most innovative and new energy efficient criteria will be used by UECC, Jiangnan Shipyard and leading ship Designer Shanghai Merchant Ship Design & Research Institute (SDARI) to build the PCTCs so as to ensure that it causes major reduction. The Tier 3 IMO NOx emission limitations which will enforced in the Baltic and the North Sea from 2021 will be met these vessels. The vessels will also be featured with dual fuel LNG engines for main propulsion and auxiliaries.
“The environment is at the top of UECC’s agenda” said Edvardsen. UECC’s Head of Ship Management, Jan Thore Foss, added “UECC’s experience with LNG PCTCs has been very good and there was really no other alternative for us” and added “the LNG solution will reduce the CO2 emission by about 25 percent”. “We are investing in the future,” underlines Edvardsen” and added “Our solution will take us beyond IMO’s target for a 40 percent reduction in carbon intensity by 2030”.
With more and more availability of bio fuels in the coming future, the goal of UECC to use fuels that are carbon neutral and synthetic as a part of their fuel mix. “In our strategy we take a long-term view,” said Edvardsen, “and that’s why we go for a battery hybrid LNG fuel solution on our new buildings”.
UECC’s CEO, Glenn Edvardsen, concluded with the following statement: “UECC has again taken leadership, and responded to future environmental regulations and market demands, with technological innovation, quality and sustainability and we will continue to do so. Furthermore, we will exceed current and future environmental regulations”.