Orders for methanol ships increased in October 2023, as the shipping industry’s interest gradually turned to the use of alternative fuels.
According to figures from Norwegian classifier DNV’s Alternative Fuel Insights (AFI), 14 orders for methanol-powered vessels and 6 for LNG-fuelled vessels have been recorded.
In September 2023 there were 12 new orders for ships with methanol engines and 8 containerships with LNG fuel.
A total of 230 methanol-fueled vessels are recorded in the DNV database: 28 existing and 202 new. Also, 984 LNG fueled vessels – 448 existing and 536 newbuild ships.
Methanol orders
Among the most recent orders is that of the Norwegian shipping company Wallenius Wilhelmsen which has signed a contract with China Merchants Jinling Shipyard Co. to build four methanol dual-fuel car and truck carriers (PCTCs), with an option for eight more.
Dry bulk shipping company Safe Bulkers has also entered into a contract to acquire two kamsarmax-class newbuild dual-fuel vessels at Zhoushan Tsuneishi Shipbuilding as part of its strategic fleet renewal.
The first ship is scheduled to be delivered in the fourth quarter of 2026 and the second in the first quarter of 2027.
Besides, the global transport group J.P. Morgan Global Alternative’s Global Transportation Group (JPMGTG), has confirmed an agreement to build two newbuild medium-range (MR) dual-fuel methanol tankers.
With a capacity of 49,800 deadweight, the ships will be built at Guangzhou Shipyard International (GSI) in China. Both are expected to be delivered in 2026 and will be time chartered to TotalEnergies.
Earlier this month, JP Morgan ordered two more MR tankers from the same yard, through its subsidiary Oceonix Services. The ships will be dual-fueled with methanol. They are expected to be delivered in 2026 and will cost 50 million dollars each, according to Intermodal data.
Meanwhile, European shipping investor Hayfin has placed an order for up to four Suezmax methanol dual-fuel tankers at Hyundai Heavy Industries’ (HHI) South Korean shipyard.
According to the Green Methanol Institute, there are currently about 120 ports internationally capable of storing and delivering methanol, but not enough green.
The institute says that about 0.7 million tons of green methanol could be produced globally by the end of 2023, with production capacity projected to reach 8 million tons per year by 2027.
At the same time, the global shipping industry requires 550 million tons by 2050 to replace oil.
