A new mystery project for a tranche of up to 10 dual-fuelled capesize bulker newbuildings worth about $650m is sparking excitement among Chinese shipbuilders.

Industry sources said several state-owned and private Chinese shipbuilders have been asked to quote for four firm LNG-fuelled, 180,000-dwt bulker newbuildings, plus a further four, and two separate optional vessels.

The enquiry is understood to be being circulated by shipbroker Clarksons under the name Project Ambition — following the broker’s style for giving an alluring tag to big newbuilding projects that shield their clients’ names.

State-owned Shanghai Waigaoqiao Shipbuilding, Qingdao Beihai Shipbuilding Heavy Industry, Bohai Shipbuilding Heavy Industry and Cosco Shipping Heavy Industry (Yangzhou) are understood to be participating in the project. New Times Shipbuilding and Yangzijiang Shipbuilding are thought to be the private shipyards involved.

Engine

A shipping source said the yards have been specifically asked to use the high-pressure ME-GI engines designed by MAN Energy Solutions.

“The ME-GI engine is more expensive and will cost an extra $2m per ship,” one source added. He estimated the dual-fuelled, 180,000-dwt newbuildings will be priced at between $63m and $65m each.

Shipyard officials declined to comment on Project Ambition, saying they have signed non-disclosure agreements.

Market talk about the identity of the end-user for the newbuildings is rife.

Several in the shipbuilding sector suggested the dual-fuelled, wide-beamed bulkers are designed for mining companies, naming likely candidates as Australia’s Rio Tinto or Fortescue Metals Group.

Technical solutions

In its latest climate report, Rio Tinto estimated its shipping emissions from all its products were 6.2m tonnes of CO2 in 2019.

Last year, the company said it joined the Energy Transitions Commission, which is focused on technical solutions to reduce emissions from the hard-to-abate industrial and transport sectors of the economy, such as steel, shipping and aluminium.

While Eastern Pacific Shipping has forged ahead with building LNG-fuelled newcastlemax bulkers on speculation, there has been little movement towards dual-fuelled capesizes, aside from some domestic orders in South Korea.

In 2018, South Korea’s H-Line Shipping became the first shipping company to take the plunge, ordering two dual-fuelled, 180,000-dwt bulker newbuildings at Hyundai Samho Heavy Industries for $71m each.

The vessels, which are due for delivery in August and November, were ordered against long-term contracts of affreightment from domestic steel maker Posco.