Japanese shipping major K Line has arranged an operating lease for its first LNG-powered car carrier through a climate transition loan with Japanese banks.

The banks in question are Mizuho Bank (MHBK) and Sumitomo Mitsui Trust Bank (SMTB).

This loan, applied to purchase the LNG-powered car carrier named Century Highway Green, is a part of Kawasaki Kisen Kaisha’s (K Line) Environmental Vision 2050. The initiative has the goal of improving CO2 emission efficiency by 50 per cent compared to 2008. Also, the loan is the very first climate transition finance in Japan.

Built by Tadotsu Shipyard, the 73,800 gross tonnage ship features an LNG fuel tank capacity of 2,439 cubic metres. The vessel uses a dual-fuel main engine and auxiliary engines capable of operating on either LNG or marine gas oil.

Century Highway Green aims at 45 per cent more energy efficiency. Also, it is to reduce sulfur oxides by about 100 per cent, nitrogen oxides by about 80 to 90 per cent.

GHG (CO2) emissions from the vessel will be disclosed annually to the lenders.