ESL Shipping secures loan from NIB for 4 green methanol-powered bulkers

May 13, 2025, by Naida Hakirevic Prevljak

The Nordic Investment Bank (NIB), a Finland-based financial institution of the Nordic and Baltic countries, has signed a 10-year loan agreement with compatriot shipowner ESL Shipping to finance the construction of four IA ice-classed green Handysize ships.

As informed, the €45 million loan will co-finance the construction of the new 17,000 dwt vessels, which are expected to enter service between Q3 2027 and Q1 2028.

The bulker quartet was ordered at China Merchants Jinling Shipyard (Nanjing) in October 2024. The investment amounts to approximately €186 million.

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These ships are equipped with dual-fuel methanol engines and large methanol tanks, allowing them to run entirely on green hydrogen-based e-methanol or biomethanol, offering an operating range of up to 10,000 nautical miles (18,520 km). The project aims to significantly reduce fossil greenhouse gas (GHG) emissions and improve the environmental performance of ESL Shipping’s fleet.

These vessels are fully equipped to use fossil-free green methanol, although the actual use of the green fuel will depend on end customer preference and availability, as per NIB.

ESL Shipping is among the first movers in green methanol-based shipping and is in the process of setting Science-Based Targets Initiative (SBTi) targets to align its operations with climate science and increase fossil-free fuel usage.

“NIB is supporting ESL Shipping in their efforts to transition to more sustainable shipping solutions,” André Küüsvek, President and CEO of NIB, commented.

“This investment aligns with our mission to finance projects that improve the environment and contribute to the sustainable development of the Nordic-Baltic region.”

Fleet renewal is part of ESL Shipping’s wider plan towards net zero. The company said that the potential for emission reduction by 2030 is built on three pillars. Apart from ordering new vessels, the company is committed to the increased use of renewable fuels and implementing various operational, technological, and technical improvements.

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