Greener offshore sector financed by GIEK

For the first time GIEK has provided financing for the installation of battery packs onboard two platform service vessels (PSVs). The hybrid propulsion helps secure new contracts for the ships, Norwegian companies deliver the hardware and installation, and Norwegian emissions are reduced. The industry appreciates GIEK’s support. (Photo: Gunder Tande Sandersen)

In recent years, the Norwegian Export Credit Guarantee Agency (GIEK) has facilitated financing for green shipping projects, inlcuding electric ferries, hybrid passenger ships and hybrid well boats for the fish farming industry.

Recently GIEK has financed the retrofit installation of hybrid electric drivetrain solutions onboard two PSVs. The battery packs reduce emissions from the ships and increases their market competitiveness among oil and gas companies operating on the Norwegisan continental shelf.

The shipos are owned by Island Offshore, whereas the hardware was delivered by the Kongsberg Group and installation carried out by Vard.

The GIEK team leader in charge of the transaction, Ms. Vibeke Stray, points out that the installation typically costs 20 million NOK (USD 2,2 million) per ship. For highly indebted ship owning companies, such costs can be hard to defend. However, GIEK is able to finance such investments if they help secure new contracts for the vessels, thus generating new income to repay the additional loan.

The industry appreciates GIEK’s contribution

- This contributes to making the vessels more attractive and securing longer-term contracts. We already sense this among the oil companies. There has been a shift during the past year, says Island Offshore CEO Tommy Walaunet to the Finansavisen daily newspaper (paid content). The company also received support from Enova, a Government financier of Norwegian greenhouse gas emissions.

The maritime industry foundation Maritimt Forum suggested last spring that GIEK finance battery backs. Mr. Ivar Engan, CEO of the Foundation states: – This is very important for the entire maritime cluster, and something that will contribute to increased activity at our large shipyards, he says.

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