Ocean Yield buys four LR1 newbuilds on first emissions-linked bareboat charter lease
Andreas Røde (Ocean Yield): “Since Ocean Yield was established in 2012, sustainability and responsibility have been integrated parts of our core strategy as we seek to be a facilitator for the decarbonisation of the shipping industry”
02 Aug 2023by Riviera News
In the deal with petrochemicals firm Braskem, the vessels’ day rates will be linked to their carbon emissions
Ocean Yield said the four LR1 product tankers would be built with a design enabling them to be converted to dual-fuel operation and run on methanol.
“The bareboat charter rate will have a variable element linked to the respective vessel’s actual carbon emissions, incentivising the charterer to keep emissions low. To the company’s knowledge, this is the first sustainability-linked transaction in the maritime leasing market, Ocean Yield said in a statement.
The four product tankers are to be built at Guangzhou Shipyard International in China, and upon delivery in 2026 and 2027, they will go under 15-year bareboat charters to subsidiaries of NYSE-listed, global petrochemical company Braskem.
Ocean Yield chief executive Andreas Røde said, “Since Ocean Yield was established in 2012, sustainability and responsibility have been integrated parts of our core strategy as we seek to be a facilitator for the decarbonisation of the shipping industry. In Braskem, we have a found a partner who shares our values and ambitions. We are excited to build on our relationship with Braskem and introduce the inaugural sustainability-linked lease to the Ocean Yield portfolio”.
The transaction will add approximately US$300M to the company’s EBITDA backlog, according to Norwegian company Ocean Yield.
The shipowner was purchased by majority share holder and private equity giant Kohlberg Kravis Roberts in 2021.
