CSET: ‘World’s first’ LNG dual-fuel VLCC gets on UNGC’s ESG+20 list

December 10, 2024, by Naida Hakirevic Prevljak

Yuan Rui Yang, the “world’s first” liquefied natural gas (LNG) dual-fuel very large crude carrier (VLCC), has been selected as one of the top 20 corporate sustainability case examples by the United Nations Global Compact (UNGC).

On November 29, 2024, UNGC and the University of Nottingham Ningbo China (UNNC) officially launched a joint sustainability case collection in Beijing.

Titled “20 Case Examples of Private Sector’s Sustainable Development in China for 20 Years”, the report highlights exemplary environmental, social, and governance (ESG) practices among corporations in China, illustrating their significant role in the transformation towards sustainable development.

“We are solemnly introducing 20 typical cases of companies from various industries to the international community, so that the world can understand how companies can turn their commitments to sustainable development into actions and how to implement ESG principles in practice, so that the right to speak is in the hands of those companies that actually take action, and say no to whitewashing and greenwashing,” Liu Meng, General Representative of the United Nations Global Compact in Asia and the Pacific, pointed out.

Owned by COSCO SHIPPING Energy Transportation (CSET), part of China COSCO SHIPPING Corporation Limited, the 337,600 cbm tanker was delivered in February 2022, becoming one of the first ships of its type to lead sustainable shipping innovation.

Since its delivery, Yuan Rui Yang has completed 18 voyages, consuming a total of 12,000 tons of LNG, with carbon dioxide emissions reduced by about 30% compared with traditional fuel oil, and sulfur oxide emissions being almost zero, the company said.

In terms of economic value, looking at the whole life cycle of the vessel, Yuan Rui Yang has a longer main engine overhaul cycle and a longer hull paint longevity, which can effectively reduce operating costs, according to CSET.

In terms of technological innovation, the VLCC has achieved ‘key technological breakthroughs’ in LNG bunker design, intelligent energy efficiency system, shipping energy efficiency design index (EEDI), and other, symbolizing the shift from passive response to proactive pursuit of environmental protection and emission reduction by tanker owners, CSET concluded.

The construction and operation of the Yuan Rui Yang is said to be an important milestone in CSET’s sustainable development and innovation as well as a starting point for the company’s focus on green shipping and decarbonization. In 2023, the company formulated the Green and Low-Carbon Transformation and Development Program, placing orders for green methanol dual-fuel tankers, LNG-ready tankers, and methanol-ready tankers.