ESL: Next-gen green methanol-powered vessel project is on track

September 12, 2025, by Naida Hakirevic Prevljak

The project for next-generation methanol-powered vessels, currently under the project name Green Handy, is progressing as scheduled behind the scenes, Finland-based shipowner ESL Shipping revealed.

Model tests have been carried out at the SSPA facility in Gothenburg to confirm that the vessel’s performance aligns with calculations.

“The results not only confirmed but also slightly exceeded our performance targets. The tests provided valuable insights into the hull’s behaviour,” Janne Eklöf, Technical Director at ESL Shipping, commented.

Saila Piipari, previously the site supervisor for the Green Coaster project, has joined the Green Handy project and works in the office before heading to China to oversee construction at the shipyard.

Before any steel is cut for the new vessels, extensive preparations are needed after signing a building contract. This includes plan approval and finalizing the list of all main suppliers for the vessel, including engines, the hybrid system, and cargo cranes.

“The design work is progressing well, and we are working closely with Deltamarin and the shipyard to ensure that the final design meets our requirements,” Technical Superintendent Piipari said.

“Our success in newbuilding projects stems from maintaining ship management and shipbuilding expertise in-house. These projects also provide excellent opportunities for internal job rotation,” Mikki Koskinen, Managing Director, noted.

Steel production for the vessels is scheduled to begin in the summer of 2026, with the delivery of the first vessel planned for the third quarter of 2027.

To remind, ESL Shipping placed an order for four methanol-fueled bulk carriers at China Merchants Jinling Shipyard (Nanjing) in October last year. The units will be 1A ice-class vessels. The ships can be operated entirely fossil-free by using green hydrogen-based e-methanol or biomethanol.

Once completed, they will feature a length of 149.9 meters and a width of 23.77 meters.

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Earlier this year, ESL Shipping signed a €70 million loan agreement with Swedish finance provider Svenska Skeppshypotek to partially finance the series of four 17,000 dwt Handysize vessels.

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In April 2025, the company also signed a 10-year, €45 million loan agreement with the Nordic Investment Bank (NIB) to finance the construction of the four newbuilds.