Furetank has been granted a green credit guarantee by the Swedish Export Credit Agency for financing a vessel of top-class environmental and climate standard.
The approval is pioneering for shipping, enabling vast investments in the green technology required to achieve European climate goals, Furetank says.
The guarantee applies to the pre-financing of Furetank's next product and chemical tanker. It covers 80 percent of the risk for the lender Tjörns Sparbank, and marks a milestone for Furetank and Swedish shipping.
This is the first time a green credit guarantee has been granted to the shipping industry and only the second time that the Swedish Export Credit Agency grants this guarantee overall. The possibility was introduced in the autumn of 2021 to enable critical investments in sustainable industry.
"For the world to succeed in the green transformation, it is vital that businesses like Furetank can finance their ambitious climate initiatives. We are very proud to have the opportunity to support Furetank’s investment in this new vessel," says Anna-Karin Jatko, Director-General of the Swedish Export Credit Agency.
The green credit guarantee is granted based on the EU taxonomy, the assessment tool that will guide international capital towards green investments. In order to reach EU climate goals and realize the European Green Deal, capital needs to be directed towards a sustainable business sector.
The agency motivates the approval saying that the ship is of "top-class environmental standard" thanks to LNG / LBG propulsion and an energy consumption already lower than the IMO objectives for 2050. They also take into account Furetank's environmentally optimized transport patterns and ambition to eliminate carbon dioxide emissions from the vessels through exclusive biogas agreements.
Furetank's CFO Pär Karlsson describes the approval as a definitive breakthrough: a confirmation from the state that Furetank has chosen the right path in making the climate investments that Sweden, the EU and the world are calling for.
"This is a significant recognition that we believe our environmental efforts deserve. We have undertaken heavy investments of time, know-how and capital to develop the Vinga vessels this far. The guarantee enables us to continue investing in green technology that takes us closer to our goal of a fossil free fleet, says Pär Karlsson.
The approval also means progress for shipping as a whole, according to the Swedish Shipowners’ Association. They have engaged in the pursuit of giving shipping companies access to green credit guarantees according to Anders Hermansson, CEO of the association.
"This is a very positive development for shipping, as a capital-demanding industry where the cost of climate investments is very high and difficult to earn back. It is a major step for the green transition of shipping globally, as Swedish shipping companies are world leaders in the environmental field. When our members invest in new green technology, it progresses not only the vessel in question but the entire industry.
Furetank, based on Donsö in the Gothenburg archipelago, is a Swedish, family-owned shipping company active in tanker shipping since the early 1950’s. Furetank operates 9 owned vessels and is a founding member of the Gothia Tanker Alliance: a market platform for small and intermediate product tankers, operating 40 vessels in European waters.