17 January 2024 (Lloyd's List) - OCEAN Network Express has confirmed orders for 12 methanol-fuelled 13,000 teu containerships across two Chinese shipyards.
State-owned Jiangnan Shipyard and privately-run Yangzijiang Shipbuilding will each build six ships, the Singapore-based carrier said in a statement. This is in line with reports from November last year, although options for up to 10 more were not mentioned.
ONE said the newbuildings will include state-of-the-art technologies such as optimised hull form, waste heat recovery systems and bow windshield, with some also to be equipped with an air lubrication system and shaft generator, to enhance emission performance.
Deliveries are scheduled from 2027, while financial details were not disclosed. Sources said the total project value could exceed $2bn, slightly higher than what was reported earlier.
"This significant milestone represents ONE's inaugural fleet of methanol-dual fuel vessels and plays a key role in reaching ONE's sustainable goals as part of the Green Strategy," it said.
The deal marks the first direct orders at Chinese yards for large containerships by the shipping line, formed in 2016 by three Japanese owners, although it has previously taken delivery of Chinese-built fresh tonnage via independent owners.
It also represents the first dual-fuel order for ONE, which had sought to keep flexible on future fuel choices.
The company's orderbook previously contained only 20 conventionally-fuelled 13,700 teu vessels — five at South Korea’s Hyundai Heavy Industries and 15 at Japan’s Imabari Shipbuilding.
ONE said methanol is expected to have huge potential for emissions reduction.
"Upcoming new fleet is pivotal in achieving our goal of deploying the first alternative fuel ships by 2030 and marks a significant milestone in our journey towards a greener and more sustainable maritime industry," said chief executive Jeremy Nixon.
Bio-methanol, and its greener future version to be produced from renewable energy, appear to have already gained favour among a growing group of owners led by Maersk, especially in the container shipping sphere.
While the orderbook has been expanding rapidly, high costs and scarce supply of the fuel remain major hurdles to further uptake. CMA CGM reportedly switched the fuel system on its eight 9,200 teu ships on order at Shanghai Waigaoqiao Shipbuilding from methanol to LNG.
