Maersk declares option for 4 more methanol-powered boxships

Danish container shipping and logistics giant Maersk has declared options with South Korean shipbuilder Hyundai Heavy Industries (HHI) for an additional four 16,000 TEU methanol-powered containerships.

The contract, worth KRW 839.7 billion (about $700.3 million) was unveiled by Korea Shipbuilding & Marine Engineering (KSOE), a parent company of HHI.

The next-generation boxship quartet is planned for delivery by 30 May 2025, KSOE said in a stock exchange filing on 10 January 2021.

Separately, Maersk also confirmed the deal.

“We can confirm that we have declared our options with Hyundai Heavy Industries (HHI) for 4 additional large container vessels able to operate on carbon-neutral methanol,” a spokesperson for Maersk told Offshore Energy – Green Marine.

“The vessels will be delivered in 2025, following delivery of 8 similar vessels ordered on August 24, 2021.”

As explained, the four newbuilds will replace a similar amount of existing Maersk fleet capacity which is reaching end-of-life.

As Offshore Energy – Green Marine previously reported, Maersk ordered in August last year eight large ocean-going container vessels capable of being operated on carbon-neutral methanol.

The first unit from the batch is slated for delivery in the first quarter of 2024.

The vessels will be classed by the American Bureau of Shipping (ABS) and sail under Danish flags.

A month ago, Maersk unveiled the design of the innovative ship fleet that is expected to have 20% improved energy efficiency per transported container compared to the industry average.

Once fully phased in, the 12 vessels will generate total annual CO2 emissions savings of 1.5 million tonnes or 4.5% of total Maersk fleet emissions, according to the company. They will offer Maersk clients “truly carbon-neutral transportation” at scale on the high seas.

Methanol as a marine fuel

Each of the twelve ships will feature a dual-fuel engine and a 16,000 cbm tank of green methanol. This will enable the vessels to make a full round trip on green methanol.

The methanol propulsion configuration was developed in collaboration with makers including MAN ES, Hyundai (Himsen) and Alfa Laval which represents a significant scale-up of the technology from the previous size limit of around 2,000 TEU.

The Danish company intends to operate the vessels on carbon-neutral e-methanol or sustainable bio-methanol as soon as it secures an adequate amount of this alternative fuel.

Powering the newbuilds with carbon-neutral methanol will require an increase in production as well as an adequate infrastructure for this purpose. By placing the orders, the shipping major also created a global demand for methanol.

Maersk is currently engaged in a number of partnerships and collaborations to help create the green methanol supply chain. To mention a few, the Danish carrier partnered up with REintegrate to produce green fuel for its first methanol-powered containership and invested in US startup WasteFuel to secure green methanol production. In March 2021, the company also joined the Methanol Institute which serves as the global trade association for the methanol industry, representing the world’s leading producers, distributors, and technology companies.

Methanol-powered fleet strategy

Prior to ordering the eight 16,000 dual-fuel boxships, Maersk also signed a shipbuilding contract with Hyundai Mipo Dockyard (HMD) for a feeder vessel with a dual-engine technology enabling it to sail on either methanol or traditional very low sulphur fuel (VLSFO).

The ship will be launched in 2023, seven years ahead of the company’s initial 2030-ambition.

In November 2021, its subsidiary Svitzer contracted Robert Allan for the design of the world’s first fuel cell tug for harbor operations, running on green methanol. 

Specifically, Maersk and Svitzer want to jointly explore the combination of methanol fuel cells, batteries, storage/handling systems, electric drives and propulsion units as a carbon-neutral alternative to the conventional fossil-fuelled propulsion train.

Together, the duo wants to identify technologies that support the overall Maersk decarbonization journey. They also want to extract and apply knowledge and operational experience of methanol feasibility from the nearshore small-scale tug onto larger ocean-going container vessels.