Ardmore Shipping: Maritime Partners and Element 1 have received Marine Money’s 2022 Deal of the Year award

“A first of its kind in shipping, and perhaps a first of its kind, period…” Ardmore’s $40 million 2021 offering with Series A funding of 8.5% was deemed by judges at this year’s Marine Money’s deal “artistic transaction” denotes year awards. The transaction between Ardmore Shipping, Maritime Partners and Element 1 is considered a “win-win-win” for all three parties involved and has won the title Preferred Equity Deal of the Year.

Shipping transactions generally follow a traditional format. Due to the exponential risk of disagreements over control, economics and social issues, few deals are made involving three different parties. However, these challenges were overcome in the deal between Ardmore Shipping, Maritime Partners and e1 Marine, with all three entities finding mutual synergies with the creation of e1 Marine, a clean energy technology company offering advanced methanol to support hydrogen generation products the fuel cell industry.

e1 Marine is a methanol-to-hydrogen technology company aiming to accelerate the energy transition by developing and making hydrogen a future fuel for the maritime industry. Maritime Partner’s involvement in the joint venture offers the potential to improve its return on investment, but also gives it access to technology that could benefit the Jones Act fleet of tugs held in its portfolio.

The agreement is also in line with Ardmore’s energy transition plan, with e1 representing tremendous potential to help the shipping industry reduce emissions from onboard power generation for auxiliary, prime mover and stationary power applications.

“Our energy transition plan comprises three core pillars”, said Mark Cameron, Ardmore’s chief operating officer“Energy transition charges are the first, energy transition projects the second and finally energy transition technologies. This third pillar advocates the critical nature of cooperation in achieving the transition goals. For example, collaborating with technical and commercial partners to develop solutions to meet the challenge of reducing emissions, including on-board energy efficiency technologies and future fuels. Our investment in e1 Marine embodies our progress model.”

The deal was also beneficial for e1 Marine. The clean tech company now has a strategic investor who will help it understand and penetrate the maritime market. Its higher valuation also makes it more attractive to investors in future funding rounds.

comment on deal, Paul Tivnan, Ardmore’s chief financial officer, added: “This deal is part of our overall strategy and a significant step forward in terms of our sustainability goals. The energy transition will be one of the greatest challenges in the history of the shipping industry and it is clear that in order to achieve our goals, collaboration will be key – no company or funder will be able to do this alone.

We look forward to applying our maritime and shipping expertise to revolutionize the way power is generated onboard and onshore and in turn reduce the emissions of shipping as an industry. We are pleased to begin a relationship with Maritime Partners with this deal and look forward to working with them on the development of e1 Marine and as a financing partner for Ardmore.”

Click here to learn more about Ardmore’s energy transition plan here.

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