MAN ES and COSCO eye new decarbonization retrofit projects with latest deal

China’s COSCO Shipping Heavy Industry (CHI) and Germany’s engine maker MAN Energy Solutions (MAN ES) have signed a framework agreement to extend their collaboration on decarbonization retrofit projects.

The agreement will enable the retrofitting of existing ships to operate on new alternative fuels like methane, methanol, and ammonia – all fuels that can be produced in a sustainable way through power-to-X processes.

For its part of the deal, MAN ES will provide advanced engine-retrofit technology and digital energy-efficiency solutions. As for CHI, the shipping player intends to leverage its engineering, procurement, and construction (EPC) experience in large-scale ship modification projects.

MAN ES described the new agreement as a natural development stemming from the companies’ previous relationship as part of which the parties are already working on two major projects for two containership owners. Namely, COSCO Line partnered with compatriot China’s COSCO Heavy Industry Shanghai, a COSCO Group shipyard, to retrofit four main engines of a containership quartet to methanol in 2023.

MAN ES was contracted to provide the dual-fuel methanol-powered ME-LGIM engines for the project.

The extended collaboration will integrate MAN PrimeServ’s dual-fuel engine technology with CHI’s repair and modification capabilities to decarbonize the merchant fleet globally. With five ship-repair yards, CHI is said to have the capacity to repair and modify approximately 1,500 ships annually.

Guo Zhiqiang, Deputy General Manager, CHI Commercial Headquarters, commented: “I am pleased to announce that CHI and MAN Energy Solutions, having served shared clients in their respective domains, are now forging a closer collaboration in vessel decarbonisation. Starting today, our integrated one-stop solutions will inject fresh impetus into the green transition of the global maritime industry.”

Michael Petersen, Senior Vice President, Head of PrimeServ Denmark, added: “This frame agreement facilitates MAN Energy Solutions’ partnership with CHI, one of the largest repair-yard groups in the world. The agreement means that we can join forces on many future projects to ensure the decarbonisation of the existing commercial fleet worldwide. Today, there are some 4,500 vessels globally with the potential to benefit from changing their current bunker fuel to more environmentally-friendly options. We look forward to working with CHI to deliver new decarbonisation solutions to the maritime industry.”