Factbox: Shipowners, port operators ramp up methanol-fuelling projects

HJ ShipBuilding & Construction Co

21/08/2023 13:48

By Carman Chew and Jeslyn Lerh
       SINGAPORE, Aug 21 (Reuters) - Interest in methanol as an
alternative fuel has grown in the shipping industry, which seeks
to achieve net-zero emissions by 2050.
    Below is a list of upcoming methanol bunkering-related
projects by companies and ports: 
    
    COMPANIES:
    *A.P. Moller-Maersk  MAERSKb.CO 
    Maersk received the world's first methanol-enabled container
ship in July. It has 24 more such vessels on order to help it to
achieve its goal of using low-emission fuels to transport a
quarter of its volumes by 2030.
    HD Hyundai Heavy Industries  329180.KS  expects to build a
dozen more such vessels, which are 16,000 TEU (twenty-foot
equivalent) in size, for 2024 delivery, while six 17,000-TEU
ships are planned for 2025 delivery. 
    Maersk at the end of June said it had ordered six 9,000-TEU
vessels to be built by Yangzijiang Shipbuilding Group  YAZG.SI 
for delivery between 2026 and 2027.
    
    *CMA CGM  CMACG.UL  
    CMA has ordered at least 18 methanol-fuelled vessels. It
ordered six 15,000 TEU containers from China State Shipbuilding
Corporation (CSSC) last June, with delivery planned for 2025,
and another 12 such vessels in April this year, as part of a
record $3 billion deal with CSSC. 

    *COSCO Shipping Holdings  601919.SS 
    The company ordered 12 methanol-powered 24,000 TEU ships
last October, worth nearly $2.9 billion, that will be delivered
between the third quarter of 2026 and the third quarter of 2028.
In June, the Chinese box ship giant added four more 16,000-TEU
ships to be built in Yangzhou.
    In August, it took delivery of methanol-ready Green Kotka, a
multi-purpose 68,000-tonne pulp carrier built by Dalian COSCO
KHI Ship Engineering Co. Ltd.
    
    *HMM Company Limited  011200.KS 
    Nine 9,000-TEU dual-fuelled methanol ships will be delivered
to HMM between 2025 and 2026. They will be built at Hyundai
Samho Heavy Industries (HSHI) and HJ Shipbuilding & Construction
 097230.KS  (HJSC) in the port of Yeongnam. 
    
    *Stena Bulk  STENA.UL  
    The tanker company partnered with methanol producer Proman
and completed its first U.S. Gulf Coast barge-to-ship methanol
bunkering at Houston port in April. Proman expects to receive
the last two of six methanol-fuelled chemical tankers it ordered
by end-2023.
    
    *Hafnia Ltd  HAFNI.OL 
    Hafnia ordered four 49,800 deadweight dual-fuelled methanol
chemical tankers to be constructed in Guangzhou, China. Three of
the four vessels will be delivered in 2025, and the fourth in
2026.
    
    *X-Press Feeders
    The company will procure green methanol from OCI Hyfuels in
the Port of Rotterdam for the former's first 14 dual-fuelled
vessels arriving in the second quarter of 2024. 
    Eastaway, part of X-Press Feeders, also commissioned eight
1,170-TEU container ships that will likely start operations
end-2024, and added six more 1,250-TEU container vessels to be
delivered between 2025 and 2026.

    PORTS:
    *China
    COSCO, CMA CGM and Shanghai International Port Group (SIPG)
 600018.SS  inked a memorandum of understanding (MoU) in April
to procure, supply and deliver green methanol fuel at major
ports in China. In March, Maersk signed an MoU with SIPG to
explore green methanol bunkering for its container vessels in
2024. 
    
    *Singapore
    Singapore completed its first green methanol bunkering
operation in July on a Maersk container ship. The project was a
joint collaboration between Maersk, Hong Lam Marine, American
Bureau of Shipping, Mitsui & Co.  8031.T , OCI Global, Stellar
Shipmanagement, Vopak Terminals, and Singapore's Maritime and
Port Authority.
    
    *Melbourne
    The port in April signed an MoU with Maersk, Svitzer
Australia, CMA-CGM subsidiary ANL, Stolthaven Terminals, as well
as fuel producers HAMR Energy and ABEL Energy, to explore the
commercial feasibility of establishing a green methanol
bunkering hub in Australia's largest container port.
    
    *Sweden
    The port of Gothenburg in January completed the world's
first ship-to-ship methanol bunkering on Stena Germanica, the
world’s first methanol-powered ferry. The port will team up with
Inter Terminals Sweden (ITS) to develop a methanol storage
facility by end-2023. 
    
    *Egypt
    Alexandria National Refining and Petrochemicals (ANRPC)
signed a $450 million agreement in May with Norway's Scatec
 SCATC.OL  to produce Egypt's first green methanol.

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UPDATE 1-Maersk secures fuel for first methanol container ship
journey     urn:newsml:reuters.com:*:nL1N38503W
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 (Reporting by Carman Chew and Jeslyn Lerh; editing by Barbara
Lewis)
 ((carman.chew@thomsonreuters.com;
jeslyn.lerh@thomsonreuters.com))