• Fund for Energy Efficiency Technologies (FEET) provides up to 100% upfront financing for retrofits and introduces a pay-as-you-save repayment mechanism linked directly to verified fuel and regulatory savings
• By offering unsecured leases on retrofits, FEET decouples retrofit financing from vessel mortgages
• Through a blended financing structure and a diversified project portfolio, FEET balances financial risk while keeping financing costs competitive

SINGAPORE, Nov. 20, 2025 /PRNewswire/ -- The Global Centre for Maritime Decarbonisation (GCMD), AIM Horizon Investments and their partners today announced the successful closing of the Fund for Energy Efficiency Technologies (FEET), securing total commitments of up to USD 35M, exceeding its initial target. 

As the world's first fund for vessel retrofits leveraging a pay-as-you-save repayment mechanism, FEET directly addresses the long-standing financial barriers hindering the sector's uptake of vessel retrofits. This fund has drawn strong interest from across the maritime value chain, including equipment manufacturers, shipowners, and investors.

GCMD provides catalytic equity and is FEET's appointed decarbonisation advisor. FEET is managed by AIM Horizon Investments. Formerly known as FPG AIM Capital, AIM Horizon Investments is a Singapore-based fund manager specialising in maritime and aviation funds for institutional and accredited investors. Shareholders of AIM Horizon Investments hold the fund's commercial equity position, while the Development Bank of Japan Inc. (DBJ) holds the preferred equity position. DBS Bank and ING (which acted as Coordinating Bank) have in principle agreed to provide senior debt financing.

Scaling EET adoption to reduce emissions

Improving energy efficiency remains one of the most effective strategies to reduce emissions and fuel costs. Energy Efficiency Technologies (EETs), such as wind-assisted propulsion systems (WAPS)^[1] and air lubrication systems (ALS)^[2], can deliver immediate fuel savings, assisting shipowners to stay competitive amid tightening regional carbon regulations. However, even with a retrofit market valued at over USD 20B, uncertainties around EET performance and access to financing continue to limit uptake.

A primary difficulty restricting adoption is the inherently variable fuel savings from EET retrofits, which depend on operational and environmental factors, such as routing and weather conditions. The lack of standardised methodologies to accurately measure fuel savings further challenges uptake.

This uncertainty has made the return on investment period difficult to predict and has exacerbated the split-incentive issue, where shipowners are expected to invest in retrofits whereas charterers realise savings. 

Verified savings at the core of pay-as-you-save

A pay-as-you-save repayment mechanism addresses payback uncertainty with EETs by directly linking repayment to quantified and verified fuel and regulatory savings. Deploying this mechanism requires robust data collection and analysis to isolate the retrofit's contribution to overall fuel savings.

To this end, GCMD has undertaken EET performance pilots, equipping vessels with additional sensors to acquire high-precision, high-resolution data and applying rigorous data analytics to quantify fuel savings with statistical confidence. As more data is collected across diverse operating and environmental conditions, these datasets can be used to model and predict savings under varying scenarios.

Unsecured financing solution to accelerate EET uptake

Commercial vessels are typically financed through loans which have a first priority mortgage over the vessel. As the cost of EETs is small relative to the vessel's value, it is not practical for shipowners or the existing secured financiers to provide vessel security to prospective retrofit financiers. Consequently, unsecured financing solutions are needed to accelerate the uptake of EETs.

FEET decouples retrofit financing from vessel mortgages by offering unsecured leases. Under this structure, FEET provides up to 100% financing for the equipment and associated installation and sensorisation costs, and leases the hardware to shipowners. In return, shipowners make repayments linked directly to verified fuel and regulatory savings. At the end of the lease, ownership of the EET is transferred to the shipowner for a nominal fee.

Blended financing and project diversification to manage risks

A blend of catalytic capital, commercial and preferred equities, as well as senior debt, allows FEET to balance financial risk while keeping financing costs competitive. By investing in a diverse portfolio of projects across technologies, manufacturers, vessel owners and types, FEET spreads investment exposure across its portfolio and enhances fund resilience.

Several projects have already been identified and have progressed to the final investment decision stage, reflecting strong industry interest and confidence. The fund remains open to shipowners and ship operators seeking support for adopting EETs.

Poised for scale

FEET is designed to scale beyond this initial closing, recognising the vast market size and shipping sector's pressing decarbonisation needs. GCMD and AIM Horizon Investments are targeting to scale the fund to USD 500M by 2030, capable of supporting around 200 ships.

Scaling FEET will create a virtuous cycle: as the fund grows in size and its projects diversify, financing costs will decrease, and richer performance data on EET will be generated. This, in turn, will spur further innovation and deliver greater benefits for shipping companies, investors and EET manufacturers.

Professor Lynn Loo, CEO, GCMD, said, "Bringing FEET to life has taken persistence and a willingness from everyone involved to step into the unknown. There was no playbook; our teams were learning as we went. This is exactly the kind of collaborative, problem-solving mindset needed to move the needle on maritime decarbonisation. My hope is that FEET will accelerate the uptake of shipboard energy efficiency solutions and help unlock the scale of action needed to turn the industry's decarbonisation ambition into tangible progress."

Michiel Muller, Partner AIM Horizon & FPG AIM, said, "We are proud to work in this partnership and bring an innovative financial product for maritime decarbonisation. It has taken a huge collective effort to create a solution that immediately reduces carbon emissions and has competitive economics that will enable it to really scale. In GCMD we have found a like-minded partner whose professional and scientific approach impressed us since the start, and it was an opportunity to further expand our long-standing relationships with DBJ, ING and DBS Bank."

Corporate Finance Department, Division 4, DBJ, said, "We believe that the adoption of EETs is an effective solution for maritime decarbonisation. FEET provides a platform to support this, and DBJ has decided to invest in the fund. We are proud to be involved in such an international and ambitious initiative, and we sincerely hope that FEET's efforts will expand and contribute to the decarbonisation of the maritime industry."

Stephen Fewster, Global Head of Shipping, ING, said, "At ING we aim to put sustainability at the heart of what we do. We are therefore delighted and honoured to have collaborated with GCMD and our partners to drive the adoption of energy efficiency retrofits which are key for shipping's decarbonisation. We look forward to further cooperation with GCMD and scaling this innovative solution to accelerate the industry's transition to Net Zero."

Max Lim, Managing Director and Group Head, Shipping, Aviation, Logistics & Transportation, DBS, said, "Shipping is the lifeblood of global trade – moving about 80% of all goods across the world. At the same time, the sector accounts for about 3% of global greenhouse gas emissions. Decarbonising this industry represents both a major challenge and a compelling opportunity. The FEET initiative not only supports the adoption of technologies for energy efficiency, but also seeks to help shipowners manage financial and climate risks. DBS is proud to be a partner in this pioneering effort that endeavours to make the transition to cleaner shipping both commercially viable and scalable."

About the Global Centre for Maritime Decarbonisation

The Global Centre for Maritime Decarbonisation (GCMD) was established as a non-profit organisation on 1 August 2021 with a mission to support the decarbonisation of the maritime industry by shaping standards, deploying solutions, financing projects, and fostering collaboration across sectors.

Founded by six industry partners namely BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express and Seatrium, GCMD also receives funding from the Maritime and Port Authority of Singapore (MPA) for qualifying research and development programmes and projects. Since its founding, bp, Hanwha Ocean, Hapag-Lloyd, NYK Line and PSA International have joined as Strategic partners. To-date, over 130 centre- and project-level partners have joined GCMD, contributing funds, expertise and in-kind support to accelerate the deployment of scalable low-carbon technologies and lowering adoption barriers. 

Since its establishment, GCMD has launched four key initiatives to close technical and operational gaps in: deploying ammonia as a marine fuel, developing an assurance framework for drop-in green fuels, unlocking the carbon value chain through onboard carbon capture and articulating the value chain of captured carbon dioxide as well as closing the data-financing gap to widen the adoption of energy efficiency technologies.

GCMD is strategically located in Singapore, the world's largest bunkering hub and busiest transshipment port. For more information, go to www.gcformd.org.

About AIM Horizon Investments

AIM Horizon Investments (formerly known as FPG AIM Capital) is a Singapore-based, licensed asset manager focused on private investments in the maritime and aviation sectors. The firm is led by an experienced team with over 80 years of collective expertise in fund management and transportation finance.

AIM Horizon Investments is affiliated with FPG AIM, which since 2012 has directly sourced and structured more than US$23 billion of shipping, container, and aircraft transactions. The group's industry-leading team of 26 specialists operates from key transportation hubs across Asia, EMEA, and the Americas, and has received multiple awards for innovative financing solutions.

About Development Bank of Japan Inc.

DBJ is a wholly government-owned financial institution in Japan, and its corporate mission is "Applying financial expertise to design the future." Its ship finance team has extensive experience in the maritime industry, serving both Japanese and international clients.

One of the team's recent areas of focus is supporting maritime decarbonisation through financial solutions.

About ING

ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank's more than 60,000 employees offer retail and wholesale banking services to customers in over 100 countries.

ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING's ESG rating by MSCI was reconfirmed by MSCI as 'AA' in August 2024 for the fifth year. As of December 2023, in Sustainalytics' view, ING's management of ESG material risk is 'Strong'. Our current ESG Risk Rating, is 17.2 (Low Risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell. Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that's not. See how we're progressing on ing.com/climate.

About DBS

DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named "World's Best Bank" by Global Finance, "World's Best Bank" by Euromoney and "Global Bank of the Year" by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named "World's Best Digital Bank" by Euromoney and the world's "Most Innovative in Digital Banking" by The Banker. In addition, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 17 consecutive years from 2009 to 2025.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by uplifting lives and livelihoods of those in need. It provides essential needs to the underprivileged, and fosters inclusion by equipping the underserved with financial and digital literacy skills. It also nurtures innovative social enterprises that create positive impact.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com

[1] WAPS harnesses natural wind power to supplement vessel propulsion.

[2] ALS creates a layer of air bubbles along the vessel's hull below the waterline, reducing friction as the ship moves through the water.

 

Source: Global Centre for Maritime Decarbonisation (GCMD)