According to BRL Weekly Newbuild Newsletter dated 15 May, Maersk entered into a letter of intent with Yangzijiang Shipbuilding for the construction of eight, plus an optional four, 8,000-TEU wide-beam container vessels
BRL said if Maersk firms up the order, the cost per ship will be US$115M.
Maersk’s latest move is part of a wave of uptake for methanol fuel in the container shipping sector which has now seen more than 100 larger feeder-sized vessels ordered, some now more than 9,000 TEU.
“The long-term outlook is that feeders will continue to earn good money for their owners, as older vessels of small capacity fail to compete on economy of scale and are offered up for recycling. A big change is happening at great pace,” the BRL consultancy’s newsletter said.
According to DNV’s Alternative Fuels Insight platform, there are currently 75 methanol fuelled container ships on order – much higher than all other ship sectors.
In April, Maersk launched its first green methanol ship. The company signalled its intention to be a first-mover with methanol with its initial order for eight carbon-neutral, methanol-fuelled container vessels, with an option for four more vessels, in 2021.
Posting on Twitter, the company said, "We are thrilled to unveil the design of our first green fuel-powered vessel. The build is on, and it’s soon to be delivered by Hyundai Mipo Dockyard."
Maersk announced a contract to build at least a dozen box ships capable of running on green methanol in August 2021 and has since increased its commitment. The latest LoI could push Maersk’s total commitment to more than 30 vessels. The first of Maersk’s methanol dual-fuelled box ships are scheduled for delivery during Q1 2024.
Since its decision to build the potentially carbon-neutral vessels, and as the company has increased its green methanol newbuild vessel commitment, Maersk has also invested heavily in building a methanol supply chain for its vessels. In December, the company signed its ninth agreement for renewable methanol supply. Notably, many of the agreements have included funding that essentially enables green methanol production companies at early stages of development to build facilities, with Maersk often committing to cover full offtake of green methanol supplies once production has begun.
In spite of the company working to establish multiple strategic partnerships around the supply of green methanol, Maersk still lists fuel availability, supply levels and price as primary challenges for its plans to decarbonise.
"The availability of green energy and fuels in sufficient quantities and at cost-competitive price levels remains the main challenge for the decarbonisation of global shipping. Maersk alone needs approximately 6M tonnes of green methanol per year to reach its 2030 milestone fleet emissions target and even larger amounts by 2040 for its fleet to reach net zero," Maersk said in late 2022.
Maersk has calculated the 19 vessels capable of running on green methanol that are scheduled to be in operation in coming years will require approximately 750,000 tonnes of green methanol annually.
Riviera Maritime Media’s Methanol: accelerating the container shipping industry’s energy transition webinar takes place 30 May. Use this link to sign up.
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