- Pacific Basin Targets Net-Zero with Methanol-Powered Bulk Carrier Fleet.
- Game-Changer: Pacific Basin Orders Four Low-Emission Methanol Bulkers.
- Pacific Basin Seals Deal for Methanol Bulkers to Meet Future Emission Standards.
Hong Kong-based Pacific Basin Shipping has ordered four dual-fuel methanol Ultramax dry bulk carriers as a move to push for further low-emission vessel solutions in the dry bulk space. Two of the 64,000 dwt units were contracted with Japan’s Imabari Shipbuilding and Nihon Shipyard, while the other two were taken through Japanese trading giant Mitsui & Co. All of these will be built by Nihon Shipyard, and delivery is scheduled for 2028 and 2029, reports Lloyd’s List.
Technology and Design Innovations
The vessels will be mounted with dual-fuel engines that can burn conventional fuel oil, biofuel, and green methanol. Nihon Shipyard will integrate an optimized hull design for enhanced fuel efficiency accompanied by advanced engine technology. The upgrades will also include operational capabilities and safety improvements.
Chief Executive Martin Fruergaard highlighted, “We are confident that the vessels’ design, specification and quality will meet our cargo customers’ requirement for safe, reliable and low-emission transport well into the future.”
Cost and Development
Although no financial details were given, methanol dual-fuel ultramax bulkers are estimated to cost about $40 million each, about $5 million more than their conventional counterparts. The order caps a two-and-a-half-year joint development project between Pacific Basin, Nihon Shipyard, and Mitsui & Co.
Market Context
Orders for methanol-powered ultramax bulkers are still scant. Before this, Lemissoler Navigation had ordered a similar order of four vessels in May 2024. Methanol dual-fuel systems are more common in larger bulkers like kamsarmax and have gained immense traction in the containership segment as fixed trading routes ease the logistics of fuel.
Green Methanol Supply
Pacific Basin has concluded a memorandum of understanding with Mitsui & Co, securing the availability of green methanol for the new vessels. The company is also holding talks with multiple suppliers about bio-methanol, e-methanol, and biodiesel in the future.
Pacific Basin stated, “The company is in dialogue with several green fuel suppliers and producers to develop its access to bio-methanol and e-methanol, as well as biofuel (biodiesel).”
Compliance and Emission Reduction
These new buildings are expected to help the Pacific Basin comply with FuelEU Maritime rules and International Maritime Organization (IMO) emission requirements through emission pooling. Fruergaard emphasized, “This is a major milestone in Pacific Basin’s plan to reach net zero emissions by 2050.”
Strategic Outlook
Fruergaard also noted the flexibility offered by the new fleet additions, stating, “This creates significant options for Pacific Basin to expand through additional low-emission new buildings and long-term charters.”
Despite its focus on new low-emission ships, Pacific Basin will maintain its fleet renewal plan by investing in modern second-hand handysize, supramax, and Ultramax dry bulk carriers.
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Source: Lloyd’s List
