Evergreen bets up to $5 billion on new dual-fuel methanol containerships

Taiwanese shipping major Evergreen is doubling down on methanol as the alternative fuel of choice for decarbonisation, confirming orders for 24 dual-fuel methanol containerships worth up to $5 billion.

PHOTO: Giant Evergreen Marine Corp container ships including the 24,000-teu Ever Ace (built 2021). Evergreen

Evergreen has split the order between South Korea’s Samsung Heavy Industries (SHI) and Japan's Nihon Shipyard. SHI will build 16 methanol dual-fuel container vessels with the capacity of 16,000 TEU each, Evergreen said in regulatory filing to the Taiwanese stock exchange today.

Rest of the eight vessels will be built by Nihon, it said. Each of the newbuild will cost Evergreen between $180 million and $210 million, taking its total expenditure to $5 billion.

The announcement has come after the IMO adopted a revised greenhouse gas (GHG) strategy last week with the ambition of achieving net-zero emissions "by or around" 2050. The strategy also includes interim targets of 20% reduction in GHG emissions by 2030 (striving for 30%), and 70% cuts by 2040 (striving for 80%), compared to 2008 levels.

With the order of 24 methanol-fueled containerships, Evergreen is now second in line after Maersk, which has 24 methanol containerships on order, and one delivered.

By Debarati Bhattacharjee

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