Climate Investor Two has approved an investment that could amount to 24.5 million euro to support the lease of Damen’s portable ballast water treatment solution InvaSave to customers in Africa, Asia, and Latin America.
Climate Investor Two (CI2) is a financing facility mandated to invest in water, sanitation and ocean infrastructure projects in emerging economies. It enjoys cornerstone support from the EU and the Dutch Fund for Climate and Development (DFCD). The consortium that manages the 160 million DFCD also includes World Wide Fund for Nature Netherlands (WWF-NL), Netherlands Development Organisation (SNV) and Entrepreneurial Development Bank, FMO.
Climate Fund Managers, the manager of CI2, is pleased to announce the signing of this Development Funding Agreement of 2.8 million euro to finance the start of this project with Damen Financial Services, the newly founded department within Damen Shipyards Group.
Viruses and bacteria
The project concerns the treatment of ballast water, which is taken on in great quantities by marine vessels to offset unloaded cargo or waste, before being discharged at the ships next port of call. This discharge typically contains a multitude of viruses, bacteria, and other biological materials, including plants and animals collectively referred to as invasive species. The inadvertent release of non-native and nuisance species in ballast water has already triggered extensive ecological damage, with a knock-on effect on the economy and human health.
The International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM) came into force in 2017, with the goal of ending the spread of harmful aquatic organisms from one region to another. As of July 2020, 87 out of 217 countries have signed the higher standards and procedures for the management of ships’ ballast water, representing more than 80 percent of the worlds merchant shipping tonnage.
240 new jobs
The Damen containerised ballast water treatment system InvaSave offers a port-based solution to ships ill-equipped to treat their ballast water or wishing to supplement their existing treatment capabilities to meet higher standards. In addition, the system is currently the only one to be certified by the International Maritime Organisation, which is responsible for the implementation of the BWM convention. During the commercial phase, it is estimated that the systems will treat up to 36,000 m3 of ballast water per day.
Tarun Brahma, CFMs Head of Investments, stated, “The Damen project represents an exciting opportunity to get ahead of the growing demand for ballast water treatment, whilst also contributing toward climate adaptation and preserving the future of marine ecosystems. In addition, we estimate this project will create 240 new jobs locally.”
Jan Willem van Helden, managing director Damen Financial Services: “Thanks to the lease construction made possible through our partnership with Climate Investor Two, this eco-friendly solution will be within reach of many more companies and governments in Africa, Asia, and Latin America.”
About Climate Fund Managers
CFM is a leading blended finance fund manager dedicated to securing a sustainable future through investing across global emerging markets. CFM has a long-term vision to structure cutting edge financing facilities around thematic areas of climate change mitigation and adaptation, including renewable energy, water, sanitation and oceans, sustainable land use and sustainable cities. Established in 2015, CFM is a joint venture between the Dutch development bank FMO and Sanlam InfraWorks – part of the Sanlam Group of South Africa.
About The DFCD
The Dutch Fund for Climate and Development (DFCD) enables private sector investment in projects aimed at climate adaptation and mitigation in developing countries. The Dutch Ministry of Foreign Affairs has made 160 million euro available to increase the resilience of communities and ecosystems most vulnerable to climate change. The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), World Wide Fund for Nature Netherlands (WWF-NL) and SNV Netherlands Development Organisation, led by the Dutch Entrepreneurial Development Bank, FMO. The DFCD forms an important additional instrument for the Dutch government’s efforts in contributing to the Paris Agreement and the Sustainable Development Goals (SDGs). For more information, please visit: https://www.thedfcd.com/
About Damen Shipyards Group
Family-owned company Damen Shipyards Group has been in operation for over ninety years and offers maritime solutions worldwide through the design, construction and repair of vessels and the delivery of related services and components. Damen is a system integrator par excellence and distinguishes itself by the serial construction of high-quality, innovative ships; backed by a global sales and service network. We operate 35 shipyards in thirteen countries and provide direct employment to more than 10,000 employees.
In addition to craftsmanship, entrepreneurship and stewardship, fellowship is a core value of Damen. We strive to be the most sustainable shipbuilder in the world, via digitalisation and standardisation of our products.
About Damen Financial Services
Damen Financial Services is the division within Damen Shipyards Group that supports clients in financing new ships and other maritime solutions through both operational and financial lease constructions.