The Global Centre for Maritime Decarbonisation (GCMD) and AIM Horizon Investments have closed the Fund for Energy Efficiency Technologies (FEET) at US$35 million, surpassing its initial target, the companies announced on November 20. The funding round marks the launch of what the organisations describe as the world’s first vessel-retrofit fund using a pay-as-you-save financing model.

Designed to accelerate the uptake of shipboard energy-efficiency technologies (EETs), FEET links repayments directly to verified fuel and regulatory savings. The fund aims to unlock adoption of technologies such as wind-assisted propulsion systems (WAPS) and air lubrication systems (ALS), which remain underutilised despite their potential to generate meaningful emissions and compliance benefits.

WAPS harnesses natural wind to supplement propulsion, while ALS reduces hull friction by releasing a layer of air bubbles along the vessel’s hull. Despite a global retrofit market valued at more than US$20 billion, uptake has remained limited due to uncertainty around performance and the sector’s long-standing “split-incentive” issue, where shipowners bear the retrofit cost while charterers typically gain the fuel-cost savings.

Under the fund’s structure, FEET offers up to 100% upfront financing for retrofit projects and provides unsecured leases, eliminating the need for vessel mortgage security. The financing covers equipment, installation work, and the additional sensorisation required to validate performance. Shipowners repay based on verified savings, with hardware ownership transferring to them for a nominal fee at the end of the lease term.

GCMD contributes catalytic equity and serves as the fund's decarbonisation advisor, while AIM Horizon Investments manages the fund. AIM Horizon shareholders hold the commercial equity position, and the Development Bank of Japan (DBJ) provides preferred equity. DBS Bank and ING, which acted as the coordinating bank, have agreed in principle to supply senior debt financing.

Moreover, according to GCMD, the performance of EETs varies with operational and environmental factors, such as routing, weather, and vessel loading, which have complicated investment decisions. To address this, the organisation has run several performance-validation pilots, installing high-precision sensors and deploying data analytics methods to quantify fuel savings and build confidence in real-world outcomes. GCMD notes that these pilots generated high-resolution datasets across multiple vessel types and operating conditions, creating the statistical foundation necessary for a pay-as-you-save model.

GCMD notes that most commercial vessels are financed through first-priority mortgages, and because the cost of EETs is small relative to asset value, it is often impractical to secure retrofit financing with vessel collateral. As a result, unsecured, off-balance-sheet financing is viewed as a critical enabler for scaling retrofits across the fleet.

In addition, FEET uses a blended-finance structure that brings together catalytic capital, commercial and preferred equity, and senior debt. According to GCMD and AIM Horizon, diversifying investments across technologies, manufacturers, and vessel segments helps optimise risk while maintaining competitive financing costs.

Several retrofit proposals have already reached the final investment-decision stage, and the fund remains open to shipowners and operators seeking support for EET deployment. GCMD and AIM Horizon intend to scale the fund to US$500 million by 2030, a level they estimate could enable retrofits on around 200 vessels. According to GCMD, expansion will also allow the fund to benefit from economies of scale, lowering financing costs while producing richer operational datasets that further improve confidence in EET performance.

Professor Lynn Loo, Chief Executive Officer of 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."

Meanwhile, Michiel Muller, partner at AIM Horizon & FPG AIM, commented: "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."

Stephen Fewster, Global Head of Shipping at ING, stated: "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 at DBS, remarked: "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."

Established in August 2021, GCMD is a Singapore-based non-profit founded by six industry partners — BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express, and Seatrium. It receives support from the Maritime and Port Authority of Singapore for qualifying R&D programmes, and its strategic partners include BP, Hanwha Ocean, Hapag-Lloyd, NYK Line, and PSA International. The organisation has since launched initiatives on ammonia-fuel safety, green-fuel assurance frameworks, onboard carbon capture, and the data-financing gap for EET deployment, and now works with more than 130 centre- and project-level partners.

AIM Horizon Investments, formerly FPG AIM Capital, is a Singapore-based manager specialising in maritime and aviation funds for institutional and accredited investors.