Financing green growth

The port intends to use the funding package to expand cargo handling facilities to keep up with demand, develop our commercial property estate and enhance terminal capacity.

But there are also ambitious aims to play a proactive role in regional decarbonisation and it will continue to invest in the Shoreham Port Green Energy Hub, a pioneering project creating cost effective green hydrogen – a clean fuel for locally based fleets.

Green funding

“We are delighted to be announcing a new financial partnership with HSBC UK. We are confident we have found a financial partner who understands our 260-year history, our values and community responsibilities as a Trust Port,” said Tom Willis, chief executive officer at Shoreham Port.

“As ever, our Masterplan is focused on improving the port for everyone and this collaboration with HSBC UK will enable the next phase of our sustainable growth. Our plans at the port will continue to facilitate economic recovery, create more good quality local employment and, through the Shoreham Port Green Energy Hub, make a significant contribution to the region’s NetZero ambitions”.

Sustainability-linked facilities from HSBC UK will enable the port to meet environmental targets on waste and emission reduction and meet regional economic objectives around training development and educational placements.

With an added focus on corporate social responsibility, it will also use part of the funding package to launch the port’s biggest ever apprenticeship scheme, creating new jobs for the local community.

Nick Hicks, area director of South East Corporate Banking at HSBC UK, said: “Shoreham Port is an excellent example of an organisation that prioritises championing important corporate social responsibility whilst managing an essential service to the short-sea shipping industry.

”We are pleased to be able to provide the support needed to enrich the development and investment into all aspects of the port.”

To undertake its refinancing process, the port board appointed EMC Corporate Finance to advise and assist the port in the delivery with its financial strategic plans.

EMC is one of the regions’ leading independent provider of business management and corporate finance advice, supporting businesses across the region.

”Working with the Board it was apparent that, rather than just refinancing existing facilities, what was really needed was to put in place arrangements that would support the Port through the rest of the decade,” said Michael Pay, co-founder and director of EMC.

“Acting as trusted custodians, Shoreham Port’s financial partnership with HSBC will enable the port to grow sustainably while boosting the local economy and drive innovation in the Maritime industry and we are delighted with the successful outcome.”

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The UK funding picture

Away from private fiance, the UK maritime sector can look to funding opportunities to realise their decarbonisation ambitions.

The UK Government’s Clean Maritime Demonstration Competition (CMDC) is one of the ways the government is supporting the marine sector to decarbonise.It’s all part of government plans to back innovative businesses and reach net zero emissions by 2050.

The second round of the CMDC, launched in May 2022, saw £12 million shared between 121 UK companies.

Among the winners were three projects exploring the development of green shipping corridors – zero emission shipping routes between tow ports. These routes build on the Clydebank declaration backed by 24 states at COP26.

The Clean Tyne Shipping Corridor consortium, the Aberdeen Harbour Board and ACUA Ocean hydrogen-powered North Sea crossing study, and the (GCSS) study between the Port of Dover and the Ports of Calais and Dunkirk, aim to support the transition to green crossings to and from the UK. This could one day create international agreements that would see only zero emission vessels – including ferries, leisure crafts and workboats – between the UK and other ports.

Using aerospace technologies, new ships are being developed that ‘fly’ above the surface of the water, reducing operational emissions by 100% and fuel costs by up to 90% by reducing drag. Built in Belfast by Artemis Technologies in collaboration with Tidal Transit, ORE Catapult and Lloyd’s Register is a project receiving over £1 million to develop a green, 24-metre workboat to transfer workers to and from offshore wind farms.

Towards the end of 2022, the window closed to apply for CMDC Round 3 in which UK registered organisations were offered the chance to apply for a share of up to £60 million for innovative clean maritime technologies from The Department for Transport.

Winners will be announced in due course.