Chinese shipbuilder CSSC Qingdao Beihai Shipbuilding has joined Shandong Shipping Corporation and China Shipbuilding Trading Co (CSTC) in signing a 2+4 project agreement for 325,000-dwt ore carriers able to run on ethanol, methanol and conventional bunker fuel, according to the 27 August signing announcement.
The agreement was signed in Qingdao, China. It covers two vessels plus four additional units, but the disclosed document is a project cooperation agreement rather than a shipbuilding contract and does not confirm all six ships as firm orders. No contract value was disclosed.
The project follows Brazilian mining group Vale’s agreement with Shandong Shipping for two second-generation 325,000-tonne Guaibamax vessels under 25-year charters, with options for additional ships.
The 340-metre vessels are due to enter service from 2029 and will be built at Beihai Shipbuilding. They will be capable of burning ethanol, methanol or heavy fuel oil, while the design allows later conversion to LNG or ammonia.
Vale has said ethanol could cut greenhouse gas emissions by as much as 90% compared with heavy fuel oil, depending on the type of ethanol used.
Swiss marine power company WinGD has secured orders for ethanol-optimised X-DF-M/E engines for the first two ships, with options for further engines if the series is expanded.
Beihai Shipbuilding is a Chinese shipbuilder and a directly managed second-tier subsidiary of China State Shipbuilding Corporation (CSSC). Shandong Shipping is a Chinese state-owned shipping company controlled by Shandong Marine Group. CSTC is a ship trading company within the CSSC group.
Vale is a Brazil-headquartered mining company with activities spanning iron ore, base metals and logistics.
WinGD is a Swiss marine power company specialising in large-bore two-stroke engines for merchant shipping.
CSSC is China’s state-owned shipbuilding group, while Shandong Marine Group is the state-owned parent of Shandong Shipping.