The Company has recently signed a contract with COSCO SHIPPING Heavy Industry for the upgrading of four existing methanol-powered dual fuel container ships, including two 13,800 TEU vessels and two 20,000 TEU vessels. This is the world’s first dual fuel upgrading project involving both of MAN marine engine and Wartsila’s auxiliary engine.

In view of accelerating decarbonization in the shipping industry, shipping companies place shipbuilding orders for vessels powered by new alternative fuels in conjunction with the upgrading of existing vessels to dual fuel vessels. There is huge market potential for the retrofitting of vessels with duel fuel engines.

Dual fuel vessels refer to the hybrid vessels powered by clean fuels (such as LNG, methanol and ammonia, etc.) and conventional fuels. If a combination of factors such as renovation, operating costs and technological sophistication are comprehensively reviewed, the benefits of using green methanol fuel outstrip LNG and ammonia. After the renovation of four vessels, their greenhouse gas emissions will reduce by about 360,000 tons per year, hence helping the Company to achieve the goals of carbon peak and carbon neutrality.

According to the contract, the first vessel will undergo renovation in mid-2025. The implementation of this project not only provides a feasible way for the Company to promote green and low-carbon transformation of its fleet, but also enables it to extend the operating life of existing fleet and enhance the fuel flexibility.