Chartering giant Cargill is in talks that could lead to a pioneering order in China or Japan for methanol-fuelled bulkers.
Jan Dieleman, president of the agricultural giant’s Cargill Ocean Transportation unit, said the company is in talks with three or four parties for the vessels after launching a tender for proposals a few months ago.
If the company cements an order, it is believed to be the first-ever bulkers powered by the fuel, which is becoming a leading low-carbon alternative amid efforts to cut shipping’s greenhouse gas footprint.
Cargill is focused on kamsarmax bulkers and has been studying design proposals from shipyards in China and Japan, with an eye toward delivery in 2025. The vessels would be dual-fuel, meaning they would have the ability to run on conventional marine fuels.
Asked about whether the ships would be owned or chartered, a Cargill spokeswoman said the company is considering multiple options that will likely involve some form of time charter. Dieleman declined to name the parties involved, citing non-disclosure agreements.
Shipbuilding sources told TradeWinds that a shipping company has been selected to provide four to six vessels and will charter them to Cargill after ordering them at a Chinese shipyard. Names of the shipowner and yard remain under wraps.
Pricing for the ships is not yet known.
The sources said Cargill has been in separate talks for the same number of smaller ultramax bulkers, although the owner and yard may be different.
First movers
The company would join a small but growing number of shipping companies, led by Danish container shipping giant AP Moller-Maersk, that have booked newbuildings fuelled by methanol.
The commodity presents the possibility of using ultra-low carbon fuel when more volumes of green methanol, made from either sustainable biomass or a combination of green hydrogen and captured carbon, become available.
In August, classification society DNV said that 56 vessels, either in operation or on order, have the ability to use the fuel.
Speaking on the sidelines of the Global Maritime Forum’s annual summit, Dieleman said the event’s discussions around decarbonisation provide comfort in making a decision to move into methanol.
“The economics are unsure. The fuel supplies are unsure. So there is risk involved,” said the executive, who is chairman of the nonprofit forum that aims to find solutions to shipping’s challenges.
“In a group like this, you get the feeling that this is the right thing to do. And you really go home and say, ‘You know what, let’s go for it.’”
Julian Bray contributed reporting to this story.
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