FEET retrofit fund closes at USD 35 million
The new funding model will bypass ship mortgage structures, de-risking retrofits (Source: GCMD)
The Global Centre for Maritime Decarbonisation (GCMD) and AIM Horizon Investments have closed the Fund for Energy Efficiency Technologies (FEET) at USD 35 million, surpassing its target. The fund offers up to 100% upfront financing for retrofits through a pay-as-you-save mechanism tied to verified fuel and regulatory savings. It provides unsecured leases, separating retrofit finance from vessel mortgages.
Backers include the Development Bank of Japan in the preferred-equity position, with senior debt provided by DBS Bank and ING. GCMD acted as decarbonisation adviser.
The fund targets technologies such as wind-assisted propulsion and air lubrication systems. GCMD has run performance pilots to generate high-resolution data and quantify savings with statistical confidence, supporting the repayment model.
Variable fuel-saving results and a lack of standardised measurement have long hindered uptake of retrofits, despite a market valued at over USD 20 billion. The fund aims to mitigate these issues and address the split-incentive problem where owners pay for retrofits while charterers benefit.
Data from pilots across diverse conditions will be used to model expected savings and refine future projects.
