Swiss investment advisor ProMarine, which focuses on financing the maritime energy transition, is launching an industry-first sustainable shipping fund with an initial portfolio of four methanol-fuelled MR tankers, led by methanol producer Proman and shipping company Stena Bulk.
The result of the Proman-Stena Bulk cooperation is the new Low Emission Methanol Shipping Company (LEMSCO). The Fund is backed by equity investors and benefits from a green loan from ABN Amro. LEMSCO’s seed assets consist of four methanol fuelled vessels acquired from Proman and Stena Bulk: Stena Pro Patria, Stena Pro Marine, Stena Promise and Stena Prosperous.
Fully re-engineered for low resistance and efficient propulsion, these IMOIIMeMAX vessels are considered among the most energy efficient and sustainable MR tankers afloat, with methanol power providing a pathway to eliminating nearly all GHG emissions.
LEMSCO will benefit from a dedicated methanol supply contract from Proman, ensuring that the fleet’s operations are not only cost-effective but also powered by a technology-proven and globally available low-emission alternative fuel.
David Cassidy, Chairman of the ProMarine Board and Proman CEO, said: “We are delighted to be launching LEMSCO, which is pioneering in its efforts to address the air pollution and wider environmental concerns surrounding the maritime industry. We all recognise that the transition to sustainable shipping requires significant capital investment. By providing an alternative financing mechanism, LEMSCO plays a crucial role in bridging this gap and facilitating the industry’s transition to lower emission fuels. We are grateful to our partners and to ABN Amro for their important early support. LEMSCO demonstrates the market’s readiness to offer practical financial incentives through reduced cost funding for ships fuelled by low-emission methanol, and can be the catalyst for further investments into sustainable shipping.”
Erik Hånell, Board Member of ProMarine and President and CEO Stena Bulk added: “The launch of LEMSCO is a pivotal moment, showcasing the maritime industry’s commitment to a sustainable future. Through strategic collaboration and innovative green financing, we are shaping a new era of maritime operations, prioritising low-emission methanol as a viable alternative fuel. LEMSCO represents a step towards meaningful change, enabling investors to support a greener, more sustainable shipping industry. Together, we are charting a course towards cleaner oceans and a more responsible shipping industry”.
ABN Amro provided debt financing to the Fund which was independently assessed against the LMA Green Loan Principles and has been successfully designated as a Green Loan by DNV.
As the maritime sector makes strides towards a sustainable future, LEMSCO is in a favourable position to provide the requisite financing for the green maritime transition. LEMSCO will invest in shipping and associated infrastructure with the aim of reducing emissions from the global maritime sector – which are currently responsible for around 3% of global GHG emissions – providing investors with an opportunity to invest directly in the energy transition of the shipping industry.
The second vessel in the LEMSCO fleet, Stena Pro Marine, will be named in the Port of New Orleans on the 24 October 2023, showcasing the GHG reduction benefits of methanol fuel at one of the busiest cruise and cargo ports in the US.
