Hapag-Lloyd Secures $4 Billion in Green Financing for 24 LNG Dual-Fuel Boxships
German shipping giant Hapag-Lloyd has announced long-term financing of $4 billion to support the construction of 24 liquefied natural gas (LNG) dual-fuel boxships. These vessels were ordered in October 2024 from two Chinese shipyards as part of the company’s sustainability-driven fleet expansion strategy.
Breakdown of Green Financing
Hapag-Lloyd explained that the green financing comprises four key elements:
- $900 million from the company’s own funds
- $500 million in bilateral mortgage loans from two banks
- $1.8 billion through three leasing structures
- $1.1 billion secured via a syndicated credit facility backed by the China Export & Credit Insurance Corporation (Sinosure)
The financing will be conducted under Hapag-Lloyd’s Green Financing Framework, which aligns with the Green Loan Principles set by the Loan Market Association (LMA). The framework’s compliance and the ships’ efficiency have been independently verified by Norway-based classification society DNV, ensuring adherence to EU taxonomy for sustainable activities.
Fleet Modernization and Sustainability Goals
Mark Frese, CFO/CPO of Hapag-Lloyd AG, emphasized the company’s commitment to fleet modernization and decarbonization goals:
“We are continuously modernizing our fleet in order to deliver a high quality of service and to achieve our ambitious decarbonization goals.”
He further noted that securing multiple green financing transactions reflects the growing importance of sustainable investments, adding:
“We are pleased to be able to finance newbuild projects in China for the first time with the Sinosure transaction.”
New LNG Boxships: Key Specifications
Hapag-Lloyd’s 24 new LNG-powered vessels will be built by Yangzijiang Shipbuilding Group and New Times Shipbuilding, each constructing 12 ships. These vessels will collectively add 312,000 TEUs to the company’s fleet.
- Yangzijiang Shipbuilding: 12 ships, each with 16,800 TEU capacity
- New Times Shipbuilding: 12 ships, each with 9,200 TEU capacity
These next-generation ships will feature low-emission, high-pressure LNG dual-fuel engines, known for their extreme fuel efficiency. They will also have the capability to operate on biomethane, which is expected to reduce CO₂ emissions by up to 95% compared to conventional propulsion systems. Additionally, the vessels are ammonia-ready, ensuring adaptability to future alternative fuels.
The newbuilds are scheduled for delivery between 2027 and 2029.
Commitment to Net-Zero Emissions by 2045
Beyond fleet expansion, Hapag-Lloyd remains dedicated to global decarbonization efforts. The company has aligned its goals with the Paris Agreement’s 1.5-degree target, aiming to:
- Reduce absolute greenhouse gas emissions by one-third by 2030 (compared to 2022 levels)
- Achieve net-zero fleet operations by 2045
The Rise of Green Financing in Shipping
Green financing has gained significant momentum in the maritime industry, driven by the push for decarbonization and stricter environmental regulations.
Notably, 80% of global shipping lenders have adopted the Poseidon Principles, a framework that helps financial institutions assess and disclose the climate impact of their shipping portfolios. This initiative plays a crucial role in promoting sustainability within the industry.
Additionally, Hapag-Lloyd’s order for 24 LNG dual-fuel boxships follows another major green financing milestone:
In August 2024, the European Commission launched the Ship Financing Portal, designed to provide businesses with financial tools for:
- Fleet renewal and retrofitting
- Enhanced efficiency
- Reduced environmental impact
Hapag-Lloyd’s latest investment underscores the growing industry-wide commitment to sustainable shipping, reinforcing the transition toward eco-friendly, fuel-efficient vessels.
