EMEA News
Finnlines to Enhance Operations for ECA Compliance Through €50 Million EIB Loan
Finnlines Plc (Finnlines) Tuesday announced that it has signed a €50 million ($55.56 million) loan agreement with the European Investment Bank (EIB), which will be used to enhance its operations for emission control area (ECA) compliance through Finnlines' €100 million ($111.12 million) Environmental Technology Investment Programme.
"The aim of the programme is to improve the ships’ fuel economy and to reduce the emissions by installing exhaust gas scrubbers as well as by reblading and treating the vessels with silicone anti-fouling for reducing hull friction," explained Finnlines.
"By these measures Finnlines can meet the new stricter MARPOL sulfur emission regulations that came into force in the beginning of 2015 in a cost efficient way."
The Environmental Technology Investment Programme, which began in 2014 and is slated to be completed by early 2017, has so far seen 18 of the company's 22 Ro-Ro and Ro-Pax vessels fitted with scrubbers.
The company says that, as a result of such efforts, its overall fleet fuel consumption in 2015 decreased more than 8 percent compared to the previous year, translating to a 75,000 tonne reduction in CO2 emissions, an estimated 1,700 tonne NOx emission reduction, and a 5500 tonne SO2 emission reduction per year.
Nordea Bank Finland Plc (Nordea) will guarantee the new loan facility, said Finnlines, adding that a subsequent counter guarantee covering 80 percent has been issued by Finnish Export Credit Agency Finnvera Plc (Finnvera) in favour of Nordea.
"We here at Finnlines appreciate greatly the Finnvera, Nordea and EIB cooperation in financing part of our EUR 100 million Environmental Technology Investment Programme," said Tom Pippingsköld, Finnlines' CFO.
"Finnlines has the youngest, the most cost-efficient and environmentally friendly vessels and through this cooperation we can strengthen our operations in an even more sustainable way."
In May, Finnlines said it had reaped the benefit of using scrubbers on-board its vessels in its 2016 Q1 financials, although the benefits were operational rather than directly to its bottom line.
