COSCO Continues Methanol Commitment with New $2B Order for Containerships

COSCO Shipping has reinforced its commitment to methanol as a future fuel for shipping, despite growing uncertainties within the industry. The company recently signed a $2.15 billion contract for new ships tailored for its Latin American service, showcasing its continued investment in methanol-powered vessels. This decision comes even as other industry players, like Maersk, diversify their fuel strategies, citing concerns over the supply and cost of green methanol.

The surge in methanol ship orders has slowed, with industry experts like DNV suggesting that the “happy hour” for green methanol may be over, predicting a shift in focus towards efficiency. However, COSCO has already made significant investments in methanol technology. Two years ago, the company ordered 24,000 TEU methanol dual-fueled containerships, with delivery expected between 2027 and 2028. COSCO is also planning methanol conversions for eight vessels starting in 2025, further solidifying its commitment to this alternative fuel.

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In addition to its fleet expansion, COSCO’s shipbuilding division is also developing its expertise in methanol-fueled vessels. The company’s shipyards have been contracted to perform methanol conversions for Seaspan, further contributing to COSCO’s leadership in this space. The new vessels for the Latin American service will incorporate advanced design elements, including a bulb bow, a hull air lubrication system, and the world’s largest capacity permanent magnet shaft generator, all aimed at enhancing efficiency.

While methanol remains a cornerstone of COSCO’s decarbonization efforts, the company is also exploring other sustainable technologies. COSCO has introduced all-electric carriers with batteries for inland and coastal shipping and has piloted biofuel projects, demonstrating its broader commitment to reducing its environmental impact across different segments of its operations.