Photo: Illustration; Photo by: Klaveness Combination Carriers ASA

KCC to boost green initiatives with multi-million dollar private placement

Klaveness Combination Carriers ASA (KCC), part of Norwegian shipping company Torvald Klaveness, has completed an equity private placement with gross proceeds of NOK 213 million (approximately $25 million) to fund energy efficiency initiatives on its current fleet.

As informed, the program is aimed at delivering significant cuts in carbon emission and further strengthening KCC’s decarbonisation strategy.

“Through its energy efficiency program, KCC is positioning for a future of increasingly strict decarbonization regulations and customer requirements in the shipping industry,” commented CEO Engebret Dahm.

KCC’s energy efficiency initiatives are expected to deliver sizeable cuts in carbon emissions over the next few years and strengthen KCC’s position as a provider of the low carbon shipping solution in the tanker and dry bulk market.

Recently, the company completed testing of 30% biofuel aboard its CLEANBU vessel MV Baru on its voyage from the Netherlands to Brazil.

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KCC, which owns and operates nine CABU and eight CLEANBU combination carriers with another one CLEANBU combination carriers on order for scheduled delivery in 2021, wants to reach or exceed IMO’s 2030 and 2050 ambitions. The company targets a carbon-neutral operation within 2030 and has ambitions of reaching a zero-emission operation within 2050.

Apart from biofuels, KCC is also exploring carbon capture & storage (CCS) technologies to reduce CO2 emissions.

“As the first equity issue in shipping dedicated to investments improving the energy efficiency of an existing fleet, the raised funds will be invested in measures being profitable at current fuel prices, with an upside potential once future shipping decarbonization regulations kick in,” added Dahm.