Two shipyards receive orders for 9 methanol-powered container ships! HMM invests heavily in newbuilds

HMM, South Korea's largest shipping company (formerly Hyundai Merchant Marine), has secured its first order for methanol-powered container ships, becoming the fourth among the world's top ten container shipping giants, following Maersk, CMA CGM, and COSCO, to join the methanol fuel camp.

HMM orders nine 9,000 TEU methanol-powered container ships for US$1.1 billion from two shipyards.

On February 14, HMM signed contracts with Korea Shipbuilding & Offshore Engineering (formerly Hyundai Heavy Industries Group) and HJ Heavy Industries (formerly Hanjin Heavy Industries) for the construction of a total of nine 9,000 TEU methanol-powered container ships, with a total contract value of 1.4128 trillion won (approximately US$1.113 billion).

These nine 9,000 TEU methanol-powered container ships are HMM's first newly ordered eco-friendly vessels. Seven will be built by Hyundai Mipo Dockyard and two by HJ Heavy Industries. Delivery is scheduled from 2025 to 2026, with deployment on South American and Indian routes. As part of a Korea-US maritime cooperation project, some of these ships will also be deployed on the North American route to establish a decarbonized shipping route between Busan Port and major US ports, contributing to the ongoing Green Shipping Corridors initiative.

It is reported that while ordering methanol-powered ships for the first time, HMM has also secured a stable fuel supply network. HMM has signed Memoranda of Understanding (MOUs) with five domestic and international companies, including Proman, PTTEP, European Energy, and Hyundai Corporation, to cooperate on the feasibility study of methanol supply at major ports and on eco-friendly methanol production.

HMM, South Korea's largest shipping company (formerly Hyundai Merchant Marine), has secured its first order for methanol-powered container ships, becoming the fourth among the world's top ten container shipping giants, following Maersk, CMA CGM, and COSCO, to join the methanol fuel camp.

HMM orders nine 9,000 TEU methanol-powered container ships for US$1.1 billion from two shipyards.

On February 14, HMM signed contracts with Korea Shipbuilding & Offshore Engineering (formerly Hyundai Heavy Industries Group) and HJ Heavy Industries (formerly Hanjin Heavy Industries) for the construction of a total of nine 9,000 TEU methanol-powered container ships, with a total contract value of 1.4128 trillion won (approximately US$1.113 billion).

These nine 9,000 TEU methanol-powered container ships are HMM's first newly ordered eco-friendly vessels. Seven will be built by Hyundai Mipo Dockyard and two by HJ Heavy Industries. Delivery is scheduled from 2025 to 2026, with deployment on South American and Indian routes. As part of a Korea-US maritime cooperation project, some of these ships will also be deployed on the North American route to establish a decarbonized shipping route between Busan Port and major US ports, contributing to the ongoing Green Shipping Corridors initiative.

HMM officials stated: “The company plans to build globally leading competitiveness through securing high-quality cargo owners, improving operational efficiency, and significantly reducing costs and increasing efficiency.”

        According to International Ship Network, at the end of last year, HMM launched a tender for nine 9,000 TEU methanol-powered container ships, with Korea's three major shipbuilders – Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and HJ Heavy Industries – participating in the bidding. This order is part of HMM's long-term development strategy, aiming to expand its container ship fleet size from 820,000 TEU to 1.2 million TEU by 2026.

Currently, the global shipping industry is actively developing various next-generation eco-friendly fuels such as methanol, LNG, ammonia, and hydrogen. HMM also plans to strengthen the competitiveness of its eco-friendly fleet by developing and introducing various eco-friendly alternative fuels while researching methanol fuel technology.

Compared to traditional fuel, methanol is characterized by its lack of nitrogen oxides and sulfur, and low PM emissions. Its advantages include mature technology, low retrofitting difficulty, safe use, convenient refueling, and low cost. Especially with the recent surge in LNG prices, the operating costs of LNG-powered ships have also increased. Meanwhile, the construction cost of LNG dual-fuel ships is higher than that of methanol-powered ships, and methanol dual-fuel ships are easier to build.

DNV analysis shows that for newbuilding orders, methanol is the second most popular alternative fuel after liquefied natural gas, with 35 ships ordered globally last year, bringing the total to 82. The industry believes that 2023 will be the year methanol gradually becomes a major alternative fuel for shipping.

Clarkson's data shows that container shipping companies' interest in methanol fuel surged last year, with new orders and added value of 32 methanol-powered container ships totaling 600,000 TEU, accounting for 21% of total container ship orders, second only to LNG-powered container ships. To date, there are a total of 47 methanol-powered container ships on order globally, including 36 ultra-large vessels of 15,000-24,000 TEU and 11 feeder vessels.