Germany’s KfW IPEX-Bank has decided to support Smyril Line’s recently announced fleet-renewal program with a financing of €90 million.
Headquartered on the Faroe Islands, the shipping company operates year-round transport between Denmark and the Faroe Islands, Iceland and the Netherlands.
As informed, the funds will be used to rejuvenate the fleet by building two identical 190-meter-long roll-on/roll-off (RoRo) ships, each with 3,300 lane meters and space for around 220 trailers and 300 cars. In addition, the ships each have 100 connections for refrigerated containers for fish transport.
Ordered earlier this month, the vessels will be built at the Chinese CIMC Raffles shipyard and are scheduled for delivery in 2026.
The ships are being designed in close cooperation with Danish engineering firm Knud E. Hansen. They include shore power connections and a battery system to ensure emission-free and low-noise operation in the port.
With an “Alternative Fuel Ready” notation, the RoRo vessels are prepared for running on e-methanol.
Compared to existing vessels, emissions are expected to be reduced by a minimum of 60%. A new chemical-free extinguishing system is also intended to increase safety when transporting electric cars.
“We are delighted to further develop our long-standing customer relationship with Smyril Line, and are pleased to support their commitment to environmentally friendly and sustainable ferry transport,” said Andreas Ufer , Member of the Management Board of KfW IPEX-Bank.
“With this financing, we are once again underscoring our commitment to supporting our customers in their transformation to climate-friendly and CO2-efficient shipping.”
KfW IPEX-Bank is responsible for export and project finance within KfW Group. Being Germany’s leading ship financier, the bank is among the world’s top ten financiers supporting innovation and energy transition in the maritime industry.
Within the maritime sector, the bank supports projects involving alternative propulsion systems such as hydrogen- or LNG-powered ships as well as electrification.