Chinese Shipyards Receive Orders for Methanol-Fueled VLOCs from Shipping Companies

What's Happening?

Qingdao Beihai shipyard has received orders for ten methanol-fueled very large ore carriers (VLOCs) from Chinese shipping companies Shandong Shipping and Bohai Ocean Shipping. These vessels will be equipped with Everllence B&W 7G80ME-LGIM engines, featuring an Exhaust Gas Recirculation system for Tier III NOx compliance. Upon completion, the VLOCs will be chartered by Vale S.A., transporting iron ore from Brazil to China. The orders reflect a growing trend towards methanol as a viable fuel option in the shipping industry, with Everllence receiving over 230 orders for its methanol engines.

Why It's Important?

The orders for methanol-fueled VLOCs signify a shift towards cleaner fuel alternatives in the shipping industry, driven by the need to reduce emissions and comply with environmental regulations. Methanol is gaining traction as a sustainable fuel option, offering the potential for carbon-neutral operations when powered by green methanol. This development is crucial for shipping companies seeking to enhance their environmental credentials and meet global decarbonization targets. The adoption of methanol engines also highlights the industry's commitment to innovation and sustainability, paving the way for broader acceptance of alternative fuels.

Beyond the Headlines

The increasing interest in methanol-fueled vessels reflects broader trends in the maritime industry towards sustainable practices and fuel diversification. As companies explore multi-fuel options, methanol's role in reducing emissions and supporting decarbonization efforts becomes more prominent. This shift may influence future shipbuilding and chartering decisions, encouraging more stakeholders to invest in environmentally friendly technologies. The focus on methanol also underscores the importance of collaboration between shipbuilders, engine manufacturers, and shipping companies in advancing sustainable solutions.