COSCO shells out $2.15 billion on twelve methanol dual-fuel boxships

Chinese majors COSCO Shipping Heavy Industry and COSCO Shipping Container Lines have signed a contract for the construction of twelve 14,000 TEU containerships with dual-fuel methanol propulsion. 

As disclosed, the new ships belong to a new generation of ship types developed jointly by COSCO Shipping Lines, COSCO Shipping Heavy Industry, and the China Shipbuilding and Ocean Engineering Design and Research Institute.

With a length of 335.9 meters, a width of 51 meters and an invisible bulb bow and stern energy-saving device, the new vessels adopt innovative design and advanced technology. They offer a large loading capacity of 13,700 standard containers.

The new vessels will be equipped with “the world’s most powerful” permanent magnet shaft generator, a bow wind deflector, an air lubrication system for the hull and intelligent systems. These technologies are expected to fulfill the third phase of EEDI energy efficiency indicators and the latest cyber security regulations.

The dual-fuelled main engine and generator are both powered by methanol to reduce greenhouse gas emissions.

Each of the ships will have a price tag of $179.5 million. The cumulative value of the contract, signed in Shanghai on August 29, 2024, is $2.15 billion, according to the shipowner.

The vessels are slated for delivery between May 2027 and March 2029.

The information was revealed together with COSCO’s half-year financial results. The firm reported that its operating income was CNY 101.2 (approximately $14.2 billion).

COSCO highlighted that with the new contract, the company wants to support the new development trend of green, low-carbon and intelligent shipping industries and actively promote the construction of its green and low-carbon fleet. Furthermore, the Chinese major is currently focusing on a combination of building new ships and modernizing existing vessels to accelerate the green and low-carbon transition of the company’s fleet.

In October 2022, the shipping company ordered twelve 24,000 TEU methanol dual-fuel containerships worth $2.87 billion. Finnish technology group Wärtsilä has been contracted to provide methanol-fueled auxiliary engines for the vessels.

Meanwhile, COSCO also decided to retrofit some of its containerships for methanol propulsion. The vessels belong to COSCO Line’s Camellia and Virgo classes, boasting capacities of 13,800 and 20,000 TEUs, respectively. German engine manufacturing powerhouse MAN Energy Solutions (MAN ES) will supply the dual-fuel methanol-powered ME-LGIM engines for the ships.

In the future, the Chinese firm plans to focus on new ways of ‘digital intelligence’ and ‘green and low-carbon’, as well as to strive for innovation and accelerate upgrades.