Industry’s first: Furetank granted green credit guarantee

April 4, 2022, by Ajsa Habibic

Furetank has become the first shipping company in Sweden to receive a green credit guarantee by the Swedish Export Credit Agency for financing a vessel of “top-class environmental and climate standard”.

The guarantee applies to the pre-financing of Furetank’s next product and chemical tanker and cover 80% of the risk for the lender Tjörns Sparbank. It was described as a milestone for Furetank and Swedish shipping.

According to Furetank, the approval is pioneering for shipping, enabling vast investments in the green technology required to achieve European climate goals.

This is also only the second time that the Swedish Export Credit Agency grants this guarantee overall since the possibility was introduced in the autumn of 2021 to enable critical investments in the 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”, said Anna-Karin Jatko, director-general of the Swedish Export Credit Agency.

Granting the approval, the agency remarked 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.

Furetank’s environmentally optimised transport patterns and ambition to eliminate carbon dioxide emissions from the vessels through exclusive biogas agreements were also taken into account.

The Swedish Shipowners’ Association sees that approval as a progress for shipping as a whole.

“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”, Anders Hermansson, CEO of the association, commented.

Furetank’s CFO Pär Karlsson described the approval as a definitive breakthrough that will enable the company to continue developing the Vinga vessels and investing in green technology that will lead towards fossil free fleet.