China Cosco Shipping is set to work with a Thai conglomerate and a US trader to produce green methanol.
The shipping giant disclosed in a social media post that it has signed a memorandum of understanding with Bangkok-based Charoen Pokphand and Stamford-based Freeport Commodities, which trades and finances physical commodities and provides supply services and structured solutions.
Cosco said the MoU is an important milestone in the strategic cooperation between the three parties and will accelerate the production and application of green shipping fuels.
According to the agreement, the three parties will make use of rich biomass resources in South East Asia and adopt industry-leading technology to build a green methanol production base that meets European Union standards. The location has not been disclosed.
Cosco said the production of methanol will also ensure a reliable supply of renewable energy for its fleet, supporting its transition programme.
Cosco aims to achieve carbon neutrality by 2060 by using alternative fuels and renewable energy.
The shipping giant has started building green-fuel vessels. It has received approval from its board to order 12 methanol dual-fuelled 14,000-teu container ships.
The neo-panamax boxships, costing $2.15bn, or $179.5m each, will be constructed by Cosco Shipping Heavy Industry Yangzhou, for delivery between May 2027 and March 2029.
Clarksons’ Shipping Intelligence Network shows Cosco also has a dozen methanol dual-fuel 24,000-teu boxships on order at Sino-Japanese shipyards Nantong Cosco KHI Ship Engineering and Dalian Cosco KHI Ship Engineering.
Five of the mega-size boxships will be operated by Cosco Shipping Line and the remaining seven by Orient Overseas Container Line.
Tanker company Cosco Shipping Energy Transportation has three methanol dual-fuel aframaxes being built at Cosco Yangzhou, while Cosco Bulk has two methanol-powered guaibamaxes on order there.
Cosco Shipping Line is also converting two 13,800-teu and two 20,000-teu ships to methanol fuel.
