Pacific Basin orders methanol dual-fuel ultramaxes

Hong Kong-based dry bulk shipping giant Pacific Basin has ordered four methanol dual-fuel ultramaxes at Japan’s Nihon Shipyard for delivery between 2028 and 2029. 

Two of the 64,000 dwt vessels are contracted jointly with Nihon Shipyard and Imabari Shipbuilding, and the other two newbuilds are agreed with Japanese trading house Mitsui & Co. The ships are priced at $46.5m each.

The dual-fuel engines will make the new ultramaxes capable of running on both conventional fuel oil and biofuel as well as green methanol, which, when produced using sustainable feedstocks and renewable energy, will generate emissions that can be classified as ‘low carbon’ or even ‘net zero’ on a lifecycle basis, Pacific Basin noted.

The company has worked with Nihon Shipyard on the vessel design and construction since May 2022, while its collaboration with Mitsui looked into alternative fuel bunkering options and associated infrastructure.

The Martin Fruergaard-led handysize and supramax specialist, with a fleet of nearly 300 ships, said it has entered into a memorandum of understanding with Mitsui that will give it access to volumes of green methanol that will enable the newbuilds and, through emissions pooling, its other conventionally-fuelled vessels, to comply with and even benefit from coming FuelEU Maritime rules and expected IMO global greenhouse gas fuel standard rules.

The company added it is also in talks with several green fuel suppliers and producers to develop its access to bio-methanol and e-methanol, as well as biofuel. 

“Ordering these vessels aligns with our longstanding initiative to develop commercially viable and efficient dual-fuel low-emission vessels, and represents a major milestone in our long-term plan to transition to net zero emissions by 2050,” said Pacific Basin chief executive Fruergaard.

Although the newbuilding move comes after many years, Pacific Basin awaits the arrival of the first of four long-term chartered 64,000 dwt ultramax newbuilds and the third of four newbuild and chartered-in handies in the fourth quarter of this year, all with purchase options attached. The company also has options to further optimise its owned fleet with four Japanese-built handies next year.

“With this newbuilding order, we are creating significant growth optionality for Pacific Basin, enabling growth through additional ‘low-emission vessels’ newbuilding orders and/or long-term charters of newbuildings with purchase options, while maintaining discipline in our acquisition of high-quality modern secondhand handysize, supramax and ultramax vessels to renew our fleet while selling older and less efficient handysize vessels,” Fruergaard added.

Earlier this month, another go-to yard in Japan for methanol-powered bulkers, Tsuneishi, launched what it claims to be the world’s first methanol dual-fuelled 65,700 dwt ultramax.