Hafnia reveals investment in methanol-powered newbuilds backed by TotalEnergies

Singapore-based tanker owner and operator Hafnia has leaped onto the methanol bandwagon with the recent order for four 49,800 deadweight dual-fuel methanol chemical IMOII Medium-Range (MR) tankers.

The deal was signed with China’s Guangzhou Shipyard International (GSI) together with Hafnia’s joint-venture partner Socatra of France.

Image credit Hafnia

“In line with Hafnia’s sustainability values and ambitions in transitioning towards a greener future and maritime sector, this is Hafnia’s first investment and step into the dual-fuel methanol landscape,” the company said.

“The increasing momentum in green methanol-fueled vessels highlights its ability as a cleaner marine fuel, with a future-proofed and proven net-zero pathway, furthering Hafnia’s ambitions in meeting the IMO’s 2050 targets.”

The use of green methanol onboard can eliminate SOx and Particulate Matter (PM) pollutants, cut NOx emissions by 60%, and reduce CO2 emissions by close to 100% on a tank-to-wake basis versus conventional marine fuels.

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Three of these four vessels will be delivered in 2025, with the fourth delivered in 2026. All four vessels are fixed via Time-Charter to TotalEnergies shipping entity CSSA for a multi-year period.

This deal marks the second time Hafnia partners with TotalEnergies in taking joint steps to develop low-carbon shipping solutions.

Given the time it takes to build a vessel and the time it takes actually to start moving the needle on carbon emissions, it is important to act now and take proactive steps in decarbonizing the maritime industry,” Søren Steenberg Jensen, Head of Hafnia’s Asset Management, said.

 “It does, however, require partnerships with charterers, to make the financials work. The cost of the new fuels’ technologies, if unsupported by long-term contracts, will have most owners refrain from taking the financial risk of the future fuel’s technology alone on otherwise already expensive assets.”

As the IMO just decided new ambitious targets to decarbonize shipping, TotalEnergies is mobilized to enable the development of low carbon shipping. The dual-fuel methanol propulsion of the chartered MR tankers will offer highly valuable fuel flexibility and the actual capability for TotalEnergies to steer the decarbonization of its shipping activity, in line with the company’s ambition,” Jerome Cousin, Senior Vice President of Shipping at TotalEnergies, noted.

We are also very pleased to expand the relationship with Hafnia, and its French partner Socatra to benefit from their expertise and deliver safe, low carbon, and efficient shipping services.”

So far, Hafnia has invested in LNG as fuel for its newbuilds as part of its decarbonization efforts.

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In 2023, Hafnia took delivery of two of its four Liquified Natural Gas (LNG) dual-fuel LR2 Product Tankers – the Hafnia Languedoc and Hafnia Loire, also built out of GSI, with the two remaining vessels to be delivered up to 2024. The Hafnia Languedoc and Hafnia Loire are both on a time-charter agreement to TotalEnergies.

All four vessels are equipped with a fuel gas supply system that has full redundancy on all supply systems and which can handle boil-off gas from the LNG tanks under any condition. According to the shipping company, the vessels’ auxiliary engines, gensets, and boilers will be able to run on multiple fuel types.

All four ships will be classed by DNV and will sail under the Maltese flag.