ESL Shipping secures $50m financing for four future cargo vessels

Nordic Investment Bank (NIB) has entered into a 10-year loan agreement with Finland's ESL Shipping to finance the construction of four 1A ice-classed handysize cargo vessels.

The ships will be fully equipped to use fossil fuel-free "green" methanol, though the actual use of the fuel will depend on end customer preference and availability.

The €45 million (US$50 million) loan will co-finance the construction of the new vessels, which are expected to enter service with ESL Shipping between the third quarter of 2027 and the first quarter of 2028.

All four ships will be equipped with dual-fuel methanol engines and large methanol tanks. These will allow the vessels to run entirely on "green hydrogen" based e-methanol or biomethanol, offering an operating range of up to 10,000 nautical miles.

NIB said the project aims to significantly reduce fossil fuel greenhouse gas emissions and improve the environmental performance of ESL Shipping’s fleet.

"NIB is supporting ESL Shipping in its efforts to transition to more sustainable shipping solutions," said André Küüsvek, President and CEO of NIB. "This investment aligns with our mission to finance projects that improve the environment and contribute to the sustainable development of the Nordic-Baltic region."