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about 3 years ago

JP Morgan pens order for methanol-powered tankers backed by TotalEnergies

Prominent American financial institution JP Morgan has placed an order for two advanced dual-fuel methanol carriers with China’s Guangzhou Shipbuilding International (GSI). The two methanol-powered product tankers each boast a capacity of 50,000 deadweight tons (dwt), according to the data from Athe

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methanol powered tanker
Illustration; Image credit Hafnia

Prominent American financial institution JP Morgan has placed an order for two advanced dual-fuel methanol carriers with China’s Guangzhou Shipbuilding International (GSI).

The two methanol-powered product tankers each boast a capacity of 50,000 deadweight tons (dwt), according to the data from Athens-based Intermodal Shipbrokers.

The two tankers are slated for delivery in 2026, based on the report.

Once delivered the methanol carriers will be employed on a time charter with France’s energy giant TotalEnergies.

The investment, valued at $50.0 million per tanker, bolsters the increasing significance of methanol as a pivotal component in the ongoing drive for greener shipping practices and comes at a time marked by growing demand for methanol as a marine fuel.

The dual-fuel technology allows the vessels to operate on both methanol and conventional fuels, offering operational flexibility while contributing to a tangible reduction in greenhouse gas emissions.

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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.

The order is being revealed on the heels of a similar contract Singapore-based tanker owner and operator Hafnia signed with GSI. Namely, Hafnia has booked the construction of four 49,800 dwt dual-fuel methanol chemical MR tankers.

All four vessels are fixed via time charter to TotalEnergies shipping entity CSSA for a multi-year period.

Three of these four vessels will be delivered in 2025, with the fourth delivered in 2026.

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