Evergreen Signs $5 Billion Deal For 24 methanol

Evergreen Marine, a Taiwan-based container shipping major, has sealed the order for 24 methanol dual-fuel container vessels in a big step toward decarbonizing its existing fleet.

The construction contract has been divided between Nihon Shipyard and industry giant Samsung Heavy Industries (abbreviated SHI) — a joint venture (JV) between Japan Marine United Corporation (popular as JMU) and Imabari Shipbuilding (established in 2021).

Under this contract, the SHI has reportedly been responsible for constructing 16 16,000 TEU methanol-operated dual-fuel container ships from the same series. The company declared that Evergreen Marine would pay between $180 and $210 million for each vessel.

Nihon Shipyard will construct the rest of the eight units following the same terms. Evergreen, in total, is estimated to spend almost $5.04 billion on this investment. The shipbrokers were reporting on the order two weeks ago. Evergreen Marine, however, refused to comment on the reports to Offshore Energy when it was approached for confirmation. The earlier reports mentioned that Evergreen would pay nearly $4 billion for new builds.

Nevertheless, the price tag released by the ship owner is way higher. The 24-strong new building fleet will be delivered between 2026 and 2027.

The ordering spree comes through as an overwhelming vote of confidence for methanol as a futureproof fuel for the shipping industry during a phase when orders in the sector have crossed 100 vessels that boast methanol-operated engines. Besides, the requirement for fleet rejuvenation and investments in cleaner fuels coincides with a renewed decarbonization plan for shipping adopted and facilitated by the IMO that targets reaching net zero by or around 2050.

Reference: JOC, Offshore Energy, The Loadstar

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