German container shipping heavyweight Hapag-Lloyd has placed firm orders at two yards based in China for the construction of at least fourteen methanol dual-fuel container vessels.
According to data released by Greece-based shipbroker Intermodal, Hapag-Lloyd has tapped Taizhou Sanfu Ship Engineering to build six 3,500 TEU boxships , and Yantai CIMC Raffles Offshore (CIMC Raffles) for the construction of eight 4,500 TEU units .
Intermodal has shared that the first contract entails an option for four additional vessels, while the second order includes the possibility for Hapag-Lloyd to exercise an option for six more ships.
As disclosed, the Hamburg-headquartered maritime transport giant is projected to cash out $60 million for each container vessel to be built by Taizhou Sanfu. The company will reportedly splash $70 million for each of the units booked at CIMC Raffles.
The delivery dates for the boxships have not yet been revealed.
Considering the fact that, once completed and delivered, the vessels will arrive with a dual-fuel propulsion system engineered for methanol— a rising alternative fuel source —Hapag-Lloyd’s upcoming additions to the roster could play a ‘significant’ role in the company’s sustainability vision.
Although not as of yet as widely available or mature as some other clean alternatives, methanol is nonetheless linked with a considerable emission reduction potential, with estimates showing that its green iteration (manufactured strictly from renewable sources) is capable of slashing carbon dioxide (CO2) emissions by 60-95%, as well as sulfur oxides (SOx) and particulate matter (PM) by over 95%.
If fossil fuel-based, the so-called grey/brown methanol is projected to, in turn, cut CO2 emissions by at least 7-10%.
Moreover, bio- and e-methanol could provide a ‘compelling’ economic upper hand by helping ship operators avoid the rising non-compliance penalties, according to a September 2024 report published by trade association Methanol Institute.
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The container shipping industry, in particular, has been embracing the application of methanol as fuel over the past years. Hapag-Lloyd has been weighing the scales of the fuel’s benefits as well as potential challenges since at least 2023.
As Offshore Energy reported before, in April 2024, Hapag-Lloyd joined forces with Hong Kong-based containership owner Seaspan Corporation to retrofit and convert five 10,100 TEU containerships powered by conventional S90 engines to dual-fuel engines capable of running on methanol.
What is more, in November 2024. the shipping player also entered into an agreement with Goldwind, a Chinese clean energy and wind turbine manufacturing company, for the delivery of 250,000 tonnes of green methanol per year.
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