Star Bulk Scrubber Loan gets Green Stamp

Wednesday October 10, 2018

A $310 million loan for dry bulk shipping company Star Bulk has had $70 million defined as a "Green Loan".

The "green" element of the loan is to finance the acquisition and installation of emissions abatement technology, more commonly referred to as scrubbers, across 50 ships in the company's fleet.

The loan confirms to "Green Loan Principles" as certified by the business assurance services of class society DNV GL.

"The completion of this financing is an important milestone for Star Bulk and its lending partners, who are pioneering sustainable green loans for dry bulk shipping investments," the company said in a statement.

The news comes amid increasing focus on the environmental credentials of IMO 2020 solutions, with shipowners seemingly keen to present their chosen route as the most beneficial, while at the same time downplaying the suitability of others.

Comments last month by Nikolas Tsakos, CEO of Tsakos Energy Navigation Ltd (TEN) and Chairman of INTERTANKO, are a case in point after the shipowner likened open-loop scrubbing to "a new drug that perhaps will kill one of the illnesses, but will kill the patient through another illness."