Singapore-based maritime leasing company Seven Yield Holding Pte. Ltd. on 12 March said it has delivered Siem Confucius, the first deep sea liquid natural gas (LNG) powered car carrier to its Norwegian parent company, Siem Car Carriers.
Siem Confucius is the first of two vessels measuring 200m long by 38m wide; its 13 decks have a capacity of 7,500 Car Equivalent Units (CEU).
Both ships will operate exclusively for the Volkswagen Group, making Volkswagen the first automaker to use LNG-powered ships in the long-distance overseas distribution of cars and light vehicles.
A comprehensive LNG bunkering fuel supply agreement has been signed with Shell to guarantee that all voyages will utilise exclusively LNG fuel.
LNG propulsion reduces carbon dioxide emissions by up to 25%, nitrogen oxide emissions by up to 30%, particulate matter by up to 60% and sulphur dioxide emissions by up to 100% compared to conventional fuel, according to Seven Yield Holding.
The ships are financed under a JOLCO (Japanese Operating Leases with Call Option) structured arranged by Crédit Agricole CIB, and documented in accordance with LMA Green Loan Principles (GLP) and Second-Opinion provided by DNV-GL
According to the Volkswagen Group, only a few smaller ships have been built with LNG propulsion for short-haul traffic of vehicles to date.
The Siem Confucius and sister Siem Aristotle will replace two of Volkswagen Group’s nine conventional heavy oil-powered ships on the trans-Atlantic route, towards Volkswagen’s strategic goal of a climate-neutral logistics for their long-distance shipment of vehicles.
“From the first conversation, Volkswagen were very clear that they wanted something much more than just compliance. The project was inspired by a vision of the future,” said Kenneth Ross, Chairman of Seven Yield and CEO of Siem Car Carriers.
“Crédit Agricole is proud to support Seven Yield and Siem Car Carriers in their initiatives of lowering carbon-emissions,” said Thibaud Escoffier, Global Head of Shipping of Crédit Agricole Corporate & Investment Bank.
“As signatories of the Poseidon Principles, fighting climate change is for us a fundamental duty. Extending loans to support our shipping clients in their efforts to improve their CO2 performance is one way to fulfill it.
“Seven Yield and Siem Car Carriers have made a serious commitment in the energy transition front, together with their contract-partner Volkswagen, in building and deploying the two first deepsea car-carriers in the world with LNG-propulsion, and our bank is pleased to be a part of this initiative.”
Photo credit: Seven Yield Holding Pte. Ltd.
Published: 25 March, 2020
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