Cosco Shipping Line has signed a deal with MAN Energy Solutions to convert a series of boxships to methanol fuel.
The project involves two 13,800-teu ships and two 20,000-teu ships.
Their names were not disclosed but they are understood to be between seven and eight years old.
The contract was signed by Cosco Shipping Heavy Industry managing director Yan Hao and MAN Energy Solutions senior vice president Michael Petersen at the Marintec China exhibition in Shanghai.
The project is likely to be expanded up to 13 ships, as Cosco Shipping holds options to convert a further nine units.
Cosco Shipping Heavy Industry (Shanghai) will carry out the retrofitting. MAN Energy Solutions’ methanol dual-fuel S90 Engine will be used for the first time in a conversion project.
Cosco Shipping is the second liner company to retrofit ships to methanol dual-fuel engines.
In October, Maersk Line announced it would convert an unnamed container ship at Xinya Shipbuilding in Zhoushan, with a series of sister ships set to follow.
Maersk’s engine, the G95, is larger than those to be fitted to the Cosco Shipping ships.
German liner company Hapag-Lloyd and Canadian shipowner Seaspan are also working with MAN Energy Solutions on methanol conversion projects for container ships.
Work will begin on the first Cosco Shipping retrofits in May 2025. Each ship will require about 90 days dry-docking.
Market sources estimate methanol conversion projects cost $28m per vessel, which would bring the value of Cosco Shipping’s project to around $364m if it converts all 13 ships.
Cosco Shipping has already started work on developing a green methanol fuel industrial supply chain, teaming up with State Power Investment Corp, Shanghai International Port Group and China Certification & Inspection Group.
Under a memorandum of cooperation, the initiative will look at the production, transportation, refuelling and certification of green methanol for ships.
