Evergreen confirms massive $5 bln deal for 24 methanol-fueled containerships

Taiwanese container shipping major Evergreen Marine has sealed the order for twenty-four methanol dual-fuel containerships in a monumental step toward decarbonizing its fleet.

The construction deal has been divided between industry major Samsung Heavy Industries (SHI), and Nihon Shipyard, a joint venture between Japan Marine United Corporation (JMU) and Imabari Shipbuilding Co., Ltd., which was established in 2021.

Under the lucrative contract, SHI has been entrusted with the construction of sixteen 16,000 TEU methanol dual fuel container vessels from the series. Evergreen Marine will be paying between $180-210 million per vessel, the company said.

Nihon Shipyard will build the remaining eight units under the same terms. In total, Evergreen is expected to spend up to $5.04 billion on the investment.

Shipbrokers were reporting on the order two weeks ago. However, Evergreen Marine declined to comment on the reports to Offshore Energy when approached for confirmation. The previous reports said that Evergreen would be paying around $4 billion for the newbuilds. Nevertheless, the price tag released by the shipowner is significantly higher.

The 24-strong newbuilding fleet is expected for delivery between 2026 and 2027.

The ordering spree comes as a tremendous vote of confidence in methanol as a future-proof fuel for the shipping industry at a time when orders in the sector have exceeded 100 ships featuring methanol-powered engines.

In addition, the need for fleet rejuvenation and investment in cleaner fuels coincides with a revised decarbonization strategy for shipping adopted by the IMO which aims to reach net-zero “by or around, i.e., close to 2050”.