The European Investment Bank (EIB) has signed an up to EUR 14 million venture loan agreement with Cimco Marine AB of Sweden, to co-finance its innovation and growth investments in the coming years.
The company is responsible for the development of OXE-Diesel, a new generation of high-power diesel outboard engines for boats, designed to replace the current 2- and 4-stroke petrol engines. The venture financing is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe.
Cimco has patented a family of diesel engines designed to supplant the currently used petrol outboard engines. The test results of the engines in terms of performance, fuel efficiency, and emissions, make it a viable alternative for heavy-duty marine applications, such as polar cruises, water taxis, coast guards and rescue police.
In the marine industry, the use of diesel allows for better performance, range and fuel safety. Contrary to engines for cars, marine outboard petrol engines lack the stringent environmental regulations that apply to automotive diesel vehicles, thus creating a lack of incentive for investing in R&D for cleaner technologies. This has led to a mainstream use of highly polluting petrol outboard engines with old and inefficient technology. Cimcos diesel engines have reached up to 42% more fuel efficiency, as well as significantly lower emissions in a test setting.
The OXE Diesel consumes 40% less (diesel) fuel than the petrol alternative. It also contributes significantly to reduced environmental impact through its emissions. Carbon dioxide is reduced by over 35%, carbon monoxide by over 99% and hydrocarbons and nitrogen oxide emissions are reduced by over 68%. European Commissioner Arias Cañete, responsible for Climate Action and Energy, said The EU is determined to deliver on its commitments to reduce greenhouse gas emissions, and we are working with Member States on their plans to become carbon-neutral by 2050. Cimcos outboard engine project drastically reduces emissions, while enabling the coast guard and rescue police who use the heavy-duty engines to continue carrying out their work at sea.
I am extremely pleased to have EIB as our funding partner. The loan will support us in meeting our growth ambitions, through investment in working capital needs, expanding production capacity and increasing our sales and marketing initiatives. Additionally, the company will use the funds to develop its product range whilst improving its efficiency, thereby lowering emission further, as well as reducing other pollutants. Our overarching goal is to continue improving the design of our belt propulsor concept with the aim of significantly reducing the carbon footprint in the high powered outboard marine segment said Myron Mahendra, CEO of Cimco.