X-Press Feeders took a risk by deciding to order vessels with dual-fuel methanol propulsion before discussing with customers in 2021
Short-sea operator X-Press Feeders firmly grasped the nettle to settle the chicken and egg debate on whether demand for green fuel must come ahead of vessel orders, by deciding to order its 14 methanol dual fuel ships before discussions with their customers, according to Seatrade Maritime.
X-Press Feeders’ COO Francis Goh told Seatrade Maritime News the company ordered its first tranche of eight vessels in 2021, speculatively, without having any discussions with its deepsea customers who would be required to pay an inflated price for freight.
“We took a bit of a chance, but it was also a step that we were willing to take to achieve our own net zero targets,” explained Goh, who added, “The good thing was that customers were willing to participate, and our four ships [operating on two intra-Europe services] are operating at 85-90% utilisation rates.”
Methanol vessels are three to four times more expensive than conventionally powered ships with the extra fuel components, tanks and double piping necessary. As a result of the extra capital costs the rates will increase to cover the newbuilding outlay.
According to Goh new vessels will be significantly more fuel efficient and as this phase of the company’s newbuilding programme comes to a close, the COO said that the average age of 70% of its fleet will be under four-years-old.
Even so, the methanol vessels will achieve 100% carbon-free footprint, Goh explains that the vessels are designed with dual fuel main engines, but the auxiliaries are conventionally powered, and will burn MGO, when manoeuvring, reducing the carbon savings to 65% in an operational context.
“These services are still considered ‘green’,” said Goh, “Anything over 60% in carbon savings is considered green.”
Five of the methanol 1,260 teu ships have been delivered in the last year, three more will arrive by the end of this year and a further six next year. “So that by the time we reach the first quarter of 2026 all of the methanol vessels will have been delivered,” agreed Goh.
Fuel for the methanol fleet is provided by OCI Global in the US, though the methanol unit was sold earlier this month in a $2 billion deal with Methanex. The company supplies methanol from biomass and Goh confirms that the company will not have sufficient fuel to operate all of the ships on methanol, immediately.
This is not because of production issues, explains Goh, but rather because the company is still in discussions with clients.
Crewing has also been raised as an issue with new fuels needing training for bunkering and storage operations and X-Press Feeders developed a plan to train seafarers.
The carrier has also enlisted help from classification societies on crew training and the protocols that are required. By the time the company has taken delivery of its full complement of dual fuel ships it will have a range of crew ready to handle the fuel safely.
