ESL Shipping orders methanol-powered bulker quartet to serve Nordic green transition

Finland shipowner ESL Shipping has placed an order for four new methanol-fueled bulk carriers at China Merchants Jinling Shipyard (Nanjing).

The series of four new, fossil-free Handysize bulkers will be 1A ice-class vessels. The ships can be operated entirely fossil-free by using green hydrogen-based e-methanol or biomethanol, ESL Shipping revealed.

The total value of the four units is approximately €186 million and the shipowner has the option to expand the order with several ships. The bulkers are scheduled to enter service between the third quarter of 2027 and the first quarter of 2028.

Mikki Koskinen, the Managing Director of ESL Shipping, stated that the company’s strategy focuses on sustainability leadership and its capability to develop and deliver reliable infrastructure for the ice-bound Nordic green transition industries.

The design of the vessels and comprehensive model tests have been carried out together with Finnish ship designer Deltamarin and the Swedish SSPA model test facility.

Furthermore, ESL Shipping has been involved in the design of the vessels to ensure that they are fully tailored to meet future needs. The majority of key equipment, such as powertrain including battery hybrid drive, cargo handling equipment and many other leading technologies come from European companies.

“This investment is fully aligned with Aspo’s portfolio vision and financial ambition as communicated on Aspo’s capital markets day on May 14, 2024. ESL Shipping aims to be at the forefront in supporting its industrial partners towards delivering entirely fossil-free products and services. This investment in fossil-free handysize vessels is a natural step to take now, when the still ongoing investment in low-emission hybrid coasters has proven to be highly successful,” stated Rolf Jansson, CEO of Aspo and Chairman of the Board of ESL Shipping.

In January this year, ESL Shipping joined the Science Based Targets initiative (SBTi), committing to setting both near-term and long-term science-based emission reduction targets aligned with the goal of limiting global warming to 1.5°C above pre-industrial levels.

In 2021, ESL Shipping announced its climate targets, aiming to reduce its emission intensity per ton-mile by 50% by 2023 and achieve net zero operations by 2050. However, in alignment with its commitment to science-based targets, the company has expedited its net zero target to 2040.

To support its journey towards green shipping, ESL also recently completed the sale of two Supramax vessels. At that time, Koskinen highlighted that the sale is said to “support our roadmap towards green shipping and our ambition to bring fossil-free handysize vessels to the market.”

“The sale enables us to allocate even more resources to accelerate the green transition,” he concluded.