Vigor Capital said it would only invest in "green ships."
A private equity firm at Tuesday's Eco-Dollars Business Breakfast in Singapore said it was looking to invest in shipping, but only in "green ships," reports SinoShip News, who's parent firm Asia Shipping Media organised the event.
Jotdeep Singh, a director at Vigor Capital and a speaker at the event said that although shipping was a late entrant to the energy efficiency drive, there were some attractive investments to be had in the sector.
"I think shipping is getting very interesting," he said, "there will be investment opportunities for people like us."
Commenting on what green meant for shipping, Singh said that "as an investor the first thing we look at is green, but of course we have to check it has to be financially viable.
the firm would by interested in anything that significantly reduces fuel
"We look for ships that consume less fuel. Fuel is the main thing we look for. We are going to focus on the energy use of ships to begin with."
Noting concerns about the severe overcapacity faced by the current markets, Singh said the firm would by interested in "anything that significantly reduces fuel use and pays for itself so anything like 10% or more efficiency that is proven and reliable."
Earlier this month Danish independent shipping company Dampskibsselskabet NORDEN A/S (NORDEN) said that when customers have a choice, "they only choose ECO tonnage," and Cargill Inc. (Cargill), Huntsman Corp., and UNIPEC UK, who combined charter over 350 million tonnes of commodities annually, said they had all decided to charter only the most fuel-efficient "eco-friendly" ships.
A September calculation by international shipping association Baltic and International Maritime Council (BIMCO) found that buying an "ECO ship" is worth a 25 percent premium over traditional designs.