Evergreen Marine Corp has confirmed a much-anticipated order for 24 methanol dual-fuelled neo-panamax container vessels, albeit at a higher-than-expected cost.
The 16,000-teu container ships will cost between $180m and $210m each.
That puts the total price at a minimum of $4.32bn and possibly as high as $5.02bn, according to a filing to the Taiwanese stock exchange today.
The Taiwanese line is splitting the order between South Korea’s Samsung Heavy Industries and Nihon Shipyard — a joint venture between Imabari Shipbuilding and Japan Marine United.
The carrier has ordered 16 methanol dual-fuelled container vessels for a total price of between $2.88bn and $3.34bn with SHI.
The remaining eight vessels costing between $1.44bn and $1.68bn have been ordered at Nihon.
News of Evergreen being on the hunt for the 24 methanol dual-fuel newbuildings was reported in TradeWinds in April.
Sources following Evergreen’s newbuilding project said the owner and liner operator only approached four shipyards — SHI, Hyundai Heavy Industries, Nihon and China’s Jiangnan Shipyard/Hudong Zhonghua Shipbuilding (Group) — for offers on the methanol-powered vessels.
Initial estimates suggested that the cost of the vessels might be slightly less at around $175m per vessel.
Preferred yards
Evergreen had been tipped to opt for the SHI and Nihon shipyards, with the former taking the lion’s share because it had experience in constructing dual-fuel propulsion vessels.
The Taiwanese line is believed to be seeking to take delivery of the new boxships between 2026 and 2027.
The carrier is one of the partners in the Ocean Alliance, which also includes CMA CGM, Cosco and Orient Overseas Container Line, commonly known as OOCL.
It was the only company in the alliance that does not operate any dual-fuelled ships or have any dual-fuelled newbuildings under construction.
The order sees Evergreen join the growing crush of owners and liner operators looking to order dual-fuel methanol propulsion vessels.
Other liner companies that have methanol dual-fuelled container ship newbuildings under construction at shipyards include AP Moller-Maersk, X-Press Feeders, CMA CGM, HMM, OOCL and Cosco.
Brokers said the methanol dual-fuel vessels cost less to build than vessels designed for LNG because there is no need for expensive cryogenic bunker tanks and fuel gas-handling systems.
However, the supply of green methanol remains a key issue along with the significant cost of the fuel over comparable low-sulphur fuel oil.
Shipping sources said Evergreen is also looking to work with methanol producers to secure its fuel supply.
