AP Moller-Maersk is moving forward on plans to build what look set to be the world’s first methanol-­fuelled container feederships.

Newbuilding sources said the company has signed a letter of intent (LOI) with Hyundai Mipo Dockyard (HMD) for three vessels.

Vessel size details remain hazy, but brokers said the yard can build feederships of up to 3,500 teu. Maersk has previously referenced plans for methanol-fuelled boxships of 2,000-teu capacity.

‘Ludicrous’ gap

Price estimates are proving tricky, as shipyard quotes have risen steeply in the wake of steel price increases.

One broker this week described the bid-offer gap between owners and yards as “enormous, almost ludicrous”.

Newbuilding specialists were also unclear as to the additional capital expenditure required for a methanol-fuelled boxship.

One said a standard 2,800-teu ship is priced at about $38.5m. While a methanol-fuelled ship may not cost too much more to build than a standard vessel, he said the additional cost is likely to be for the bunker tank and fuel-handling systems.

The company has already flagged up plans to build a raft of methanol-fuelled feederships for an alternative-fuel pilot project, after ditching LNG as an option for bunkers.

A spokesman for Maersk said the company is continually reviewing its fleet including evaluating opportunities to charter from third parties, buy or sell vessels and order newbuildings.

He said “continued capex discipline” remains a key focus area for Maersk which is committed to maintaining a fleet capacity in the 4m teu to 4.3m teu range, as a combination of Maersk managed and time-chartered vessels.

Referencing the company’s 17 February announcement to launch the world’s first container vessel that can operate on carbon neutral methanol, he said: “The concept design is finalised and we are currently in discussions with equipment suppliers and yards. We will share more details once a contract is signed.”

Several projects are in the works for tankers and retrofits of existing vessels, but the Maersk newbuildings are likely to be the first containerships built specifically to run on methanol.

LNG not an option

TradeWinds earlier linked Maersk to HMD for this ­business.

The Danish liner giant has previously said it plans to operate the newbuildings on either synthetic or sustainable bio-­methanol from their deliveries and operate them on intra-regional trades, but did not elaborate. However, company officials flagged up that sourcing supplies of methanol will be “a significant challenge”.

The move aims to demonstrate to its customers that there is a scalable carbon-neutral fuelling solution for its vessels and encourage suppliers to boost their green methanol production.

Green methanol is deemed ­carbon-neutral as it is produced using hydrogen from renewable sources and CO2 from the atmosphere, from either a biological feedstock or direct air capture.

Maersk said in February that it will put its first carbon-neutral containership into operation by 2023, as it shifted its decarbonisation target forward by seven years.

It also said future newbuildings will be dual-fuel and able to run on carbon-neutral fuels.

Maersk is targeting a 60% reduction in carbon emissions per container by 2030 and net-zero emissions by 2050. It is working on its decarbonisation efforts with the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, an independent, non-profit research and development organisation.

MAN Energy Solutions said 26 of its ME-LGIM methanol engines are in operation, mainly on methanol carriers.

Methanol emits no SOx or ­particulate matter and little NOx. It is easier to store and handle than LNG, ammonia and hydrogen. But it has a lower energy content than LNG or conventional fuels and requires around 2.5 times more storage space for the same energy content.

Companies are looking at opportunities to blend blue and green methanol into the traditional grey methanol to lower its carbon emissions for shipping.