Finland. Wärtsilä Corporation
|Date of agreement:||08 Sep 2023|
|Amount in EUR:||EUR 75 million|
|NACE sector / loan type:||Research and development|
The investment loan has been provided for Wärtsilä Corporation for the financing of the company’s research and development (R&D) investments during 2023–2025. These investments are aimed at accelerating the transition towards marine decarbonisation and renewable energy.
Wärtsilä provides innovative technologies and lifecycle solutions for the marine and energy markets. The NIB loan provides long-term financing for Wärtsilä’s R&D investments for the development of power supply solutions for the marine industry and energy business applications.
The project is eligible to be financed through NIB Environmental Bond proceeds.
Fulfilment of NIB's mandate
The majority of Wärtsilä’s R&D activities involve the development of power supply solutions for the shipping industry and energy sector.
Wärtsilä’s R&D efforts on new fuel solutions enable the company to provide compliant technologies and solutions to customers, helping them meet evolving regulatory requirements and remain competitive on the market landscape.
R&D is the main driver of productivity growth, and its impacts are widely distributed through the transfer of skills and knowledge in labour markets. Due to the strong industrial engineering sector in the Nordic-Baltic region, the likelihood of such outcome is relatively high.
Wärtsilä’s R&D focuses on two business areas: marine business and energy business. The main driver for the R&D in the marine business is the decarbonisation of shipping and in the energy business the energy transition.
In the marine business, Wärtsilä’s R&D is mainly focusing on developing new engines and converting existing engines to use alternative low-carbon fuels. Wärtsilä has set a target that by 2030 have a product portfolio ready for zero carbon fuels.
In the energy business, Wärtsilä’s R&D programme focuses on energy transition. The aim is to develop efficient peak applications that respond quickly in situations where balancing power for renewable generation is required and to test their integration with battery systems.
R&D investments contribute to green shipping and renewable energy transition.
Ex-ante impact indicators (productivity and environment):
- Target R&D intensity over the project time: 3%
- Annual R&D expenditures: EUR 240 million
Wärtsilä’s R&D investments are not assessed to have any significant negative environmental or social impacts.