Established: 1986
Climate Fund investment decision: 3/2023
Funding target: expansion of low-carbon technologies in shipping
Funding: 6,8 M€ junior loan
Main anticipated impact: The total cumulative ten-year emissions reduction potential of the two ships is 50,3 kt CO2-eq

Maritime transport accounts for roughly 3 % of global carbon dioxide emissions and the International Maritime Organization (IMO) has set a target to reach net-zero GHG emissions by or around 2050. Without action, the emissions generated by maritime transport are projected to increase – even double.

Meriaura has commissioned two bio-oil-powered hybrid cargo ships with a tonnage of 6,800 from the Royal Bodewes Shipyard in the Netherlands. The ships can achieve emissions reductions of up to 98 % compared to traditional cargo ships powered by fossil fuels. In addition to the use of renewable fuels, emissions reductions can be achieved through more efficient engine technology as well as the utilisation of waste heat, batteries or wind power.

The Climate Fund’s investment decisions are guided by a set of criteria emphasising impact, against which every case applying for funding from the company is evaluated. Preconditions for funding include a credible plan for repayment of the investment, alignment with the six environmental objectives of the EU’s sustainable investment network, i.e. the “do no significant harm” principle, and that with Climate Fund’s investment the project will be realised earlier, on a larger scale or in the first place. When the preconditions are met, the final selection will be made based on impact criteria, such as emissions reduction potential.

The commissioned ships reduce emissions by consuming less fuel and using mainly renewable green fuels. The bio-oil is produced from waste and recycled raw materials sourced from Finland and it’s an ICSS-certified product. The total cumulative ten-year emissions reduction potential of the two ships is 50,3 kt CO2-eq.

The junior loan of EUR 6,8 million priced at the market rate by the Finnish Climate Fund has been allocated to the purchase of two bio-oil-powered hybrid cargo ships. In addition to the emissions reductions, Meriaura’s fleet renewal programme has significant impact by demonstrating the adoption of low-emission technologies to other maritime shipping companies.