ESL Shipping secures additional $79m financing for future cargo vessels

Finland's ESL Shipping has entered into a €70 million (US$79 million) loan agreement with Swedish maritime finance specialist Svenska Skeppshypotek.

The loan is a part of the financing of ESL Shipping’s investment in a series of four methanol-powered 17,000DWT handysize vessels. The loan has a maturity of 15 years, and it is expected to be drawn in 2027 and 2028.

ESL Shipping had earlier entered into a 10-year agreement with Nordic Investment Bank to finance the construction of the same four vessels.

The ice class 1A 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.

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.

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