Shandong Shipping, the third largest shipowner in China, has made a major investment in newbuild vessels by ordering twelve 82,000 dwt Kamsarmaxes at Jiangsu New Hantong Ship Heavy Industry.
The deal marks the largest newbuild order ever made by Shandong Shipping.
The company said that it has signed a deal with Shandong Huachen Financial Leasing to finance the ships.
The Kamsarmaxes will be equipped with carbon capture and storage technology developed by the state-run China State Shipbuilding Corporation. This marks an important pilot project for Chinese shipbuilding to reduce carbon emissions from its shipping industry.
The pilot project will be implemented by the shipping company in cooperation with the 711th Research Institute of China State Shipbuilding Corporation.
The project is expected to pave the way for the promotion and validation of the technology in the shipping sector while also helping set up standards for the utilization of onboard carbon capture in the industry.
Equipped with a MAN-B&W 6G50ME-C9.6 main engine, the vessels are designed to meet the IMO Tier III nitrogen oxide emission standard and the energy efficiency standards set by the EEDI.
Delivery of the new vessels is scheduled to begin at the end of 2024 and continue into 2025. The cost per unit is estimated at $33.5m, according to brokers.