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Nefco signs agreement with Norsepower to boost Asia production

Nefco, the Nordic Green Bank, has signed a loan agreement with Norsepower Oy Ltd which will accelerate Rotor Sail production within Asia.

As the world-leading provider of auxiliary wind propulsion systems, Norsepower’s Rotor Sail technology provides efficient, easy-to-use and reliable auxiliary wind propulsion for the shipping industry with installations already onboard tankers, bulkers, RoRo ships and ferries. The clean technology has a proven average fuel savings record of 5-25%.

Financing from Nefco will be channelled to investments in the Norsepower production hub in China. Over recent years, Norsepower has established two fully owned subsidiaries in Hong Kong and Yancheng to respond to the growing demand in Asia. The new financing is a continuation of cooperation with Nefco. The Yancheng subsidiary started with a feasibility study co-financed by Nopef, the Nordic Project Fund, which is a financial instrument managed by Nefco that supports international growth of Nordic Small and medium-sized enterprises.

Tuomas Riski, CEO at Norsepower says: “Our mission is to reduce the environmental impact of shipping through the commercialisation of innovative and modern sail power. With the IMO’s Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) coming into effect at the start of 2023, Rotor Sails can help ship owners improve their ratings against these criteria to help future-proof their fleet. With Nefco financing, we will be able to invest in our production capabilities in Asia so that we are well positioned to meet rising demand for our Rotor Sail technology.”

With a technology based on the Magnus effect, the patented Norsepower Rotor Sails allow the main engines to be throttled back, increasing shipping fuel savings and reducing emissions while providing the power needed to maintain speed and voyage time. Norsepower Rotor Sails have several patented special features, which ensure their durability, safety, long lifetime, easy operations, and low maintenance costs.

On the environmental side, the Norsepower Rotor Sails contribute to the reduction of greenhouse gases and other emissions, such as sulphur and nitrogen oxides and particulate matter from ships, as each Rotor Sail in operation directly replaces the main propulsion power that is typically derived from fossil fuels. With typical annual fuel savings of 300 tonnes per Rotor Sail, avoided emission reductions are 900 t CO2/a.

“This loan agreement is a culmination of our fruitful cooperation with Norsepower. Norsepower’s modern sail technology is fascinating, and it offers one solution for the shipping industry that faces increasing cost and environmental constraints,” says Helena Lähteenmäki, Investment Director at Nefco.

Norsepower’s next installation is planned for later in 2022 for CLdN, the logistics specialist for road, sea and rail, onboard a 2018-built Ro-Ro vessel, the MV Delphine.