Taiwanese shipping company Wan Hai Lines has placed significant orders for up to twenty methanol dual-fuel container vessels at South Korean and Taiwanese shipyards, according to Offshore Energy.
Letter Of Intent (LOI)
The company signed a letter of intent (LOI) for twelve methanol dual-fuel container vessels on behalf of Wan Hai Lines (Singapore) on August 12, 2024. The ships will have a capacity of around 8,000 TEU.
The LOI includes purchase options for four units, Wan Hai revealed in a stock exchange filing.
Construction & Cost Details
The ships will be constructed by CSBC Corporation in Taiwan and will cost between $102.5 million and $124 million per unit. The total transaction price is estimated to be between $1.23 billion and $1.98 billion.
Additionally, Wan Hai signed another LOI for four 8,700 TEU methanol dual-fuel boxships, to be built at the HD Hyundai Samho shipyard in South Korea. The cost for these vessels ranges from $113.5 million to $130.41 million each, with the total transaction estimated at $454 million to $521.64 million.
Methanol & Marine Fuel
This is the first time Wan Hai has ordered vessels with dual-fuel propulsion, opting for methanol as marine fuel. With this move, Wan Hai followed in the footsteps of its counterparts including Maersk, Ocean Network Express (ONE), Evergreen Marine and others.
Momentum is building for methanol as shipowners become more confident in its use as a clean alternative fuel. This decision is driven by increased demand for methanol, numerous investments in production and bunkering infrastructure, and tighter emission regulations in the EU and globally.
The global order book for methanol-fueled vessels continues to grow, with ship conversions on the rise. New orders are also coming in across other segments, including tankers, bulk carriers, passenger and cruise vessels, and the offshore wind industry, highlighting the popularity of methanol.
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Source: Offshore-Energy
