United European Car Carriers (UECC), jointly owned by Nippon Yusen Kabushiki Kaisha (NYK) and Wallenius Lines, has secured funds from Svenska SkeppsHypoteck for three pure car and truck carriers (PCTC) featuring battery hybrid LNG technology.
Construction of the vessels will be undertaken by China Ship Building Trading Co., Ltd and Jiangnan Shipyard Group Co. Ltd, with delivery scheduled from July 2021 onwards.
Announcing the agreement with Svenska SkeppsHypoteck, UECC noted that securing green financing makes the company eligible for reductions in borrowing costs and is also a further step forwards in making its whole value chain, from vessel to finance, more environmental.
The vessels will meet the Tier 3 IMO NOx emission limitations coming into force in the Baltic and the North Sea from 2021. In respect of the 2021 CO2 reduction regulations, the vessels will also be equipped with dual-fuel LNG engines for main propulsion and auxiliary engines
UECC’s Head of Ship Management, Jan Thore Foss, noted that: ‘UECC's experience with LNG PCTCs has been very good and there was really no other alternative for us.’
Using LNG will reduce CO2 emissions by around 25% and to cut emissions even further the vessesl will be equipped with battery packages.
‘We are investing in the future,’ emphasised UECC CEO Glenn Edvardsen Edvardsen, adding: ‘Our solution will take us beyond IMO’s target for a 40% reduction in carbon intensity by 2030.’
As more biofuels become commercially available in the future, UECC says it aims to also use carbon neutral and synthetic fuels as part of its future fuel mix.