Seven Yield Delivers the First Deep-Sea LNG-Powered Car Carrier
Seven Yield has delivered Siem Confucius, the first deep-sea LNG-powered car carrier to Siem Car Carriers.
The first of two vessels, she is the largest LNG-powered car carrier. She is 200m long by 38m wide, and her 13 decks have a capacity of 7,500 ceu.
The ships will operate exclusively for the Volkswagen Group. As a result, Volkswagen will be the first automaker to use LNG-powered ships in long-distance overseas distribution of cars and light vehicles.
A comprehensive LNG bunkering fuel supply agreement has been signed with Shell to guarantee that all voyages will utilize exclusively LNG fuel. Compared to conventional fuel, LNG propulsion reduces carbon dioxide emissions by up to 25 percent, nitrogen oxide emissions by up to 30 percent, particulate matter by up to 60 percent and sulfur oxide emissions by up to 100 percent.
The ships are financed under a JOLCO structured arranged by Crédit Agricole CIB, and documented in accordance with LMA Green Loan Principles (GLP) and Second-Opinion provided by DNV GL.
Leveraging on the Siem Industries Inc. Group’s expertise and with the support of our financing partner, Crédit Agricole CIB, Seven Yield and Siem Car Carriers overcome capital cost challenges to deliver a technologically advanced solution to Volkswagen, contributing towards its “goTOzero’ emission strategy. This also marks a significant milestone in Seven Yield’s commitment towards reducing carbon emission in a greenhouse gas intensive sector.
According to the Volkswagen Group, until now only a few smaller ships have been built with LNG propulsion for short-haul traffic of vehicles. The Siem Confucius and sister Siem Aristotle will replace two of the nine conventional heavy oil-powered ships on the trans-Atlantic route, representing a significant step towards Volkswagen’s strategic goal of a climate-neutral logistics for their long-distance shipment of vehicles.
We are very pleased to partner Crédit Agricole CIB in the arrangement of this first Green Loan JOLCO arranged by a commercial bank. Over the last decade, Crédit Agricole CIB has demonstrated its global leadership in Sustainable Finance supporting its clients in their energy transition and sustainable development strategies.
Seven Yield has received a Second Opinion from DNV GL, a leading shipping classification and consultancy, confirming that the transaction is eligible and in accordance with LMA (Loan Market Association) Green Loan Principles.
“From the first conversations, Volkswagen were very clear that they wanted something much more than just compliance. The project was inspired by a vision of the future,” said Kenneth Ross, Chairman of Seven Yield and CEO of Siem Car Carriers.
“Crédit Agricole is proud of supporting Seven Yield and Siem Car Carriers in their initiatives of lowering carbon-emissions. As signatories of the Poseidon Principles, fighting climate change is for us a fundamental duty. Extending loans to support our shipping clients in their efforts to improve their CO2 performance is one way to fulfill it. Seven Yield and Siem Car Carriers have made a serious commitment in the energy-transition front, together with their contract-partner Volkswagen, in building and deploying the two first deep-sea car-carriers in the world with LNG-propulsion, and our bank is pleased to be a part of this initiative,” said Thibaud Escoffier, Global Head of Shipping of Crédit Agricole Corporate & Investment Bank.
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