Norsepower Oy Ltd, the leading global provider of mechanical sails for large ships, IINO Kaiun Kaisha Ltd (IINO Lines), and Mizuho Leasing Co Limited (Mizuho Leasing) have jointly and exclusively signed a cooperation agreement to launch a groundbreaking mechanical sail leasing initiative for the Norsepower Rotor Sail. This agreement aims to increase shipping companies’ access to Norsepower’s products to help reduce fuel consumption, greenhouse gas (GHG) and other related emissions.
The partnership brings extensive experience in lease financing, including expertise in leasing sustainable technologies, combined with Norsepower’s nearly 10-year track record of successful installations onboard commercial vessels.
The International Maritime Organization (IMO) recently set a net zero emissions target close to 2050. However, the adoption of proven, commercialized energy efficiency products such as the Norsepower Rotor Sail is hindered by the traditional requirement for upfront investment. This initial investment can be a significant barrier to technology take-up for small to medium-sized shipowners and operators despite the achievable fuel consumption, GHG and other emissions reductions. This failure means that thousands of vessels on the water today are missing out on the potential benefits of the Norsepower Rotor Sail. Lease financing aims to remove these barriers and enable greater accessibility to finance Norsepower’s product.
The initiative focuses on providing shipowners and operators with leasing packages for the Norsepower Rotor Sail, which start at a minimum five-year term against a fixed monthly fee.
The concept is being developed amid growing recognition that GHG and other emissions reductions with low carbon or green fuels alone before 2030 will be minimal. This is due to the limited availability of alternative fuels, placing an onus on energy efficiency solutions like Norsepower Rotor Sails to maximize energy efficiency savings.
“Norsepower Rotor Sails are now an undisputed choice for making meaningful emissions reductions and managing escalating fuel bills. Having our product as standard onboard all suitable vessels should be feasible for shipowners and operators of all sizes. That’s why we’re delighted to introduce new, competitively-priced leasing services with our partners. By doing so, we could lower upfront capital requirements and encourage vessel owners to take action and upgrade their fleets,” said Tuomas Riski, Norsepower CEO.
“We are proud to bring this initiative to market with such high-caliber organizations as IINO Lines and Mizuho Leasing. Through collaborating, we aspire to offer combined access to significant credit facilities as well as leveraging IINO Lines and Mizuho Leasing’s extensive leasing experience across sustainable technologies, maritime assets and beyond,” Riski added.
Ryuichi Osonoe, director and senior managing executive officer at IINO Lines, commented, “We have fostered a strong relationship with Norsepower, installing its rotor sails on two of our vessels. Now, we want to make this product more accessible to the industry. We are confident that bringing together our complementary leasing and finance capabilities with Norsepower’s proven product will accelerate the shipping industry’s journey to decarbonization.”
Yasuhiko Hashimoto, managing executive officer at Mizuho Leasing, said, “Through our work in other sectors, we have seen first-hand how improving access to finance and providing flexible options for accessing sustainable technologies can make a real-world impact on improving environmental performance. We are excited to apply our experience to the maritime industry and support IINO Lines and Norsepower in achieving our shared ambition to make the use of energy-efficient technologies a scalable reality.”
300,000 hours of verified performance
The Norsepower Rotor Sail is a modernized version of the Flettner rotor. It uses a small amount of the ship’s electric power to rotate cylinder-shaped rotors to generate powerful thrust that saves fuel and reduces emissions. Vessel and cargo owners have already used the product for nearly 10 years, accumulating around 300,000 operating hours of verified performance data that show average fuel consumption savings of between 5 and 25% or more in good conditions. These savings have been measured and analyzed independently in various projects by Lloyd’s Register and ABB, NAPA, RISE, Chalmers University of Technology and VTT.
Nearly 30,000 vessels across tankers, bulk carriers, gas carriers, roll-on/roll-off, and passenger vessels currently on the water can benefit from Norsepower Rotor Sails. It is a proven commercialized product that could reduce CO2 emissions across the global fleet by 80 megatons, about 10% of all international shipping’s greenhouse gas emissions.
Norsepower was founded in late 2012 with a mission to reduce the environmental impact of shipping. Norsepower Rotor Sail is a radically modernized version of the old Flettner rotor. The concept of the Flettner rotor was first devised by Finnish inventor and architect Sigurd Savonius and German engineer Anton Flettnerin the 1920s. The first Atlantic crossing—by a vessel using Flettner rotors only—happened in 1926. However, technical challenges and the market situation prevented more widespread application. A hundred years later, Norsepower’s business concept was initially developed in collaboration between founding board members Moray Martin of MB Martin and Partners Limited and Erik Floman from Korkia Venture Insight. (Story and photo courtesy of Norsepower)