K Line’s unit secures green loan for electric tugboat

Daito Corporation, a subsidiary of Japanese shipping company K Line, has secured a green loan to finance the construction of an electric tugboat ordered in November 2024.

The green loan, procured from Mizuho Bank, utilizes the Port of Yokohama – CNP Sustainable Finance Framework aimed at promoting the decarbonization of the port.

According to K Line, Daito is the first company to utilize this framework for financing.

To remind, on November 8, 2024, K Line’s subsidiary signed a collaboration agreement with Kawasaki Heavy Industries (KHI) and Daizo Corporation for the construction of an electric tugboat that will offer towage service for ships at Yokohama Port and Kawasaki Port.

The 33.4-meter-long electric tugboat with a maximum speed of 14 knots is classified as a green project under “Clean Transportation” within the CNP Sustainable Finance Framework.

The vessel, to be equipped with a high-capacity battery of 3.2 MWh and operate using green electricity charged into the battery, is expected to reduce fuel consumption and achieve around 60% reduction in CO2 emissions compared to conventional tugboats equipped with heavy fuel oil engines.

Furthermore, the newly developed hull design and the automatic control of onboard power demands using IoT technologies will be deployed to optimize energy consumption.

The vessel is scheduled for delivery in May 2027.