‘Industry’s first’ methanol-powered sustainable shipping fund unveiled

ProMarine AG, an investment advisor for the financing of the maritime energy transition, has launched what has been described as the’ industry-first sustainable shipping fund’ with an initial portfolio of four methanol-fueled MR tankers led by methanol producer Proman and shipping company Stena Bulk AB.

Named Low Emission Methanol Shipping Company S.C.A. SICAV–RAIF (LEMSCO), the fund is backed by equity investors and benefits from a green loan from ABN AMRO. LEMSCO’s seed assets consist of four methanol fuelled vessels acquired from Proman and Stena Bulk:

• Stena Pro Patria
• Stena Pro Marine
• Stena Promise
• Stena Prosperous

“We are delighted to be launching LEMSCO, which is pioneering in its efforts to address the air pollution and wider environmental concerns surrounding the maritime industry,” David Cassidy, Chairman of the ProMarine Board and Chief Executive of Proman, said.

“We all recognize that the transition to sustainable shipping requires significant capital investment. By providing an alternative financing mechanism, LEMSCO  plays a crucial role in bridging this gap and facilitating the industry’s transition to lower emission fuels.”

“We are grateful to our partners and to ABN AMRO for their important early support. LEMSCO demonstrates the market’s readiness to offer practical financial incentives through reduced cost funding for ships fuelled by low-emission methanol, and can be the catalyst for further investments into sustainable shipping.”

“The launch of LEMSCO is a pivotal moment, showcasing the maritime industry’s commitment to a sustainable future. Through strategic collaboration and innovative green financing, we are shaping a new era of maritime operations, prioritizing low-emission methanol as a viable alternative fuel,” Erik Hånell, Board Member of ProMarine and President & CEO at Stena Bulk AB.

“LEMSCO represents a step towards meaningful change, enabling investors to support a greener, more sustainable shipping industry. Together, we are charting a course towards cleaner oceans and a more responsible shipping industry.”

LEMSCO will also benefit from a dedicated methanol supply contract from Proman.

ABN AMRO provided debt financing to the fund, which was independently assessed against the LMA Green Loan Principles and has been designated as a Green Loan by DNV.

“This transaction is the result of executing our climate strategy to decarbonize the shipping sector whereby LEMSCO is setting the example through the setup of a low-emission fund. ABN AMRO is keen to continue its support for the growth of the low emission portfolio backed by two strong industry-leading sponsors,” Remco Jongkind, Managing Director ABN AMRO said.

LEMSCO will invest in shipping and associated infrastructure with the aim of reducing emissions from the global maritime sector, providing investors with an opportunity to invest directly in the energy transition of the shipping industry.