SIPG, Evergreen Marine sign green methanol supply deal

Shanghai International Port Group (SIPG), the exclusive operator of all the public terminals in China’s Port of Shanghai, and Taiwanese container shipping company Evergreen Marine recently signed a memorandum of cooperation on green methanol fuel supply for ships in the port.

Under the deal, SIPG will be responsible for green methanol procurement, supply and bunkering services for the dual-fuel methanol ships that will be delivered to Evergreen in 2026 and 2027.

With this move, the duo aims to jointly promote the realization of carbon reduction goals and create a low-carbon, low-carbon, environmentally friendly energy hub port.

Last year, Evergreen Marine ordered 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.

Zhang Yanyi, Chairman of Evergreen Marine, said that the new agreement boosted the company’s confidence in coping with the future green methanol fuel market.

At the signing ceremony in December 2023, Gu Jinshan, Secretary of the Party Committee and Chairman of SIPG, said that the empty container center cooperated by Shanghai Port and Evergreen Shipping is in good condition and has received good response in the market. With the opening of the Luojing Automated Container Terminal and the full operation of the north side of Xiaoyangshan in the future, the throughput capacity and service level of the entire Shanghai Port will reach a new level.

Shanghai Port’s supply and refueling of green methanol fuel for ships has received great attention from the Shanghai Municipal Party Committee and Municipal Government, and has received strong support from relevant municipal authorities and units.

The signing of the green methanol cooperation memorandum is seen as a milestone in the cooperation between the two parties and an important manifestation of SIPG’s efforts to build a green methanol industry chain, develop green and low-carbon emerging industries, promote industry energy transformation, and promote high-quality development.

The deal is also expected to promote a closer relationship between SIPG and Evergreen Shipping which will actively explore a cleaner and more efficient green shipping system.

In March last year, SIPG and Danish container shipping giant Maersk also signed a memorandum of cooperation on the Shanghai Port methanol marine fuel project.

What is more, SIPG, French shipping giant CMA CGM and its Chinese counterpart COSCO Shipping inked a similar deal in April 2023.