COSCO Shipping Group is stepping up its drive in the production of green methanol.
China’s state-owned shipping behemoth has signed a memorandum of understanding with Thai conglomerate Charoen Pokphand Group (CP Group) and US trader Freepoint Commodities, described as a major milestone in accelerating the transition to sustainable fuels for the global shipping industry.
COSCO said the collaboration, which aims to ensure a reliable supply of renewable energy for COSCO Shipping’s fleet, will focus on establishing a green methanol production base in Southeast Asia employing technologies that meet EU standards.
In September last year, COSCO also teamed with three Chinese state-run firms – State Power Investment Corporation Limited (SPIC), Shanghai International Port Group (SIPG), and China Certification & Inspection Group (CCIC) – to develop a green methanol industrial chain that will comprise the production, transportation, refuelling, and certification of green methanol for ships.
The world’s largest shipowner has ordered methanol dual-fuel newbuilds in a variety of sectors, including dry bulk, containers and tankers and has also signed up several ships for methanol dual-fuel retrofits.
In related news, Danish liner giant Maersk, which set the ball rolling on methanol-fuelled newbuilds in 2021, recently completed what it claims to be the first large container vessel conversion to a dual-fuel methanol engine. The retrofit on the 2017-built Maersk Halifax was carried out at the Zhoushan Xinya Shipyard in China over 88 days, with completion at the end of October this year. In addition to being able to run on methanol, the ship’s hull was also extended by 15 m, increasing its capacity from around 15,000 to 15,690 teu.
