All agreed loans

Norway. Fjord1 ASA

Date of agreement: 3 Dec 2019
Country: Norway
Customer: Fjord1 ASA
Amount in NOK: NOK 750 million
Amount in EUR: EUR 73.8 million
Maturity: 5 years
NACE sector / loan type: Water transport
Business area: Infrastructure, transportation and telecom

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%
NEB category: Clean transport solutions
Amount disbursed: EUR 30.8 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds

Project

The loan has been provided to the Norwegian ferry operator Fjord1 ASA to finance the purchase of twelve new hybrid electric ferries, which are to be deployed on three different ferry routes in Norway: Hordaland lines 1 and 2, and the Nordmoerspakken line.

The new ferries are designed to run on electricity and will be charged when docked. However, the vessels also have backup marine fuel oil power, which can be used if needed. The ferries are also built to accommodate future engine changes and battery upgrades to prolong their operational life.

The acquisition of the new vessels is part of Fjord1’s wider investment programme and its efforts to contribute to a more environmentally friendly and reliable ferry transport service.

Fjord1 ASA is one of Norway’s leading ferry operators with a fleet of 76 ferries by Q3 2019. The company operates on seven out of ten of the country’s busiest ferry crossings and transports up to 21 million passengers annually. Fjord1 ASA is further involved in passenger-boat services, catering and fjord-based tourism. The company is listed on the Oslo Stock Exchange.

Fulfilment of NIB's mandate

Productivity:

The investment in new hybrid ferries is expected to lead to a productivity increase and cost savings due to lower maintenance needs. Further, the service quality is expected to improve, as electrical propulsion will lead to less noise, vibration and fumes. The ferries will be constructed at shipyards in Norway and Turkey.

Environment:

Norway is implementing a national strategy to reduce emissions from state-operated ferries. New ferries are required to employ low- or zero-emission technology to support the phasing out of fossil fuels for short-distance ferry connections in line with the Paris Agreement.

The new ferries purchased by Fjord1 will replace older, diesel-driven vehicles. The energy efficiency of operations is expected to improve by 30–40%, and CO2 emissions are estimated to decrease by approximately 50,000 tonnes a year. Further, the electric vehicles are expected to have lower noise impacts, lower usage of lubricating oils and a smaller amount of sludge oil waste.

Sustainability summary

Fjord1’s environmental and safety policies focus on green transition and safe ferry operations. The company’s ship recycling policy follows the principles of the Hong Kong International Convention on Recycling Ships and the EU’s ship recycling regulation.

With regards to the supply chain, five of the new electric ferries will be built at Havyard’s Leirvik shipyard in Sogn, Norway, and seven ferries will be built at three shipyards in Turkey (Tersan, Cemre and Sefine). Fjord1 requires that the contracting shipyards have certified quality and EHS management systems according to ISO9001, ISO14001 and OHSAS18001 in place. The shipyards must also commit to complying with their national legislation and the ethical requirements of the relevant ILO conventions and UN guidelines.

Press release

NIB finansierer nye elektriske hybridferger i Norge