Chinese shipyards accept orders again! Japanese shipping giant orders first ammonia fueled ship

Japanese shipping giant Mitsui Mitsui returns to Qingdao Beihai Shipbuilding and adds double fuel large bulk carriers, choosing ammonia fuel as ship power for the first time.

According to Trade Wind News, Mitsui International has placed an order with Beihai Shipbuilding to build four 210000 deadweight ton ammonia dual fuel Newcastle MAX bulk carriers. The new ships are expected to be delivered between 2027 and 2028, with a cost of up to 93 million US dollars per vessel and a total transaction amount of approximately 372 million US dollars (about 2.699 billion yuan).

As a reference, Clarkson's data shows that the current price for a newly-built 205000-210000 deadweight ton traditional fuel Newcastle Max bulk carrier is about $79.75 million, an increase of 14% compared to $70 million in the same period last year, but slightly lower than $80 million earlier this year.

If this order is confirmed, it will be Mitsui's first investment in ammonia fueled ships. Prior to this, the dual fuel ships ordered by Mitsui Mercantile were mainly powered by LNG. According to official website data, as of June 2024, Mitsui International has ordered a total of 43 LNG dual fuel ships, including 37 ocean going vessels (6 delivered and 31 under construction) and 6 domestic vessels (4 delivered and 2 under construction).

Mitsui, a merchant shipping company, had previously regarded LNG and methanol as the main alternative fuels. According to Mitsui's "Environmental Vision 2.2" plan, by 2030, the number of LNG/methanol powered ocean going vessels in its fleet will increase to 90, and the proportion of zero emission fuel use will reach 5%; By 2035, the number of ocean going vessels with net zero emissions will reach 130, and the goal is to achieve net zero greenhouse gas emissions for the entire group by 2050.

Mitsui's zero emission vessels will use new fuels such as synthetic methane, ammonia, hydrogen, and biodiesel. It is expected that the use of ammonia and hydrogen as marine fuels will account for 70% of its planned carbon emissions reduction, followed by LNG, methanol, electric/biomethane, and methanol, accounting for 20%.

For Beihai Shipbuilding, this is their third order taken over from Mitsui International. In August 2022, Mitsui, a merchant shipping company, placed an order for four LNG powered Newcastle max bulk carriers at Beihai Shipbuilding for the first time. This is also the first time that Mitsui, a merchant shipping company, has ordered a dual fuel bulk carrier from a Chinese shipyard; In December 2023, Mitsui International ordered three additional ships of the same type.

These 7 LNG dual fuel ships from Mitsui International are equipped with a new generation of "green and environmentally friendly" ship design independently developed by Qingdao Beihai Shipbuilding. The total length of the ship is 300 meters, the width is 50 meters, the structural draft is 18.4 meters, and the speed under the structural draft is 14 knots. They are equipped with an LNG dual fuel power system, which meets the IMO TIER III emission standards and EEDI Phase III requirements. Through comprehensive optimization of the ship design, the ship has better fuel and gas economy. EEDI is about 44% lower than the baseline value, SOx emissions are reduced by over 90%, and NOx emissions are reduced by over 20%. In gas mode, it can meet the requirements of two round-trip voyages on the China Australia route and the round-trip endurance on the China Pakistan route. It is a modern green and environmentally friendly Cape type bulk carrier that integrates energy conservation, environmental protection, and high efficiency.

The 210000 deadweight ton bulk carrier is the main construction vessel of Qingdao Beihai Shipbuilding, and currently Beihai Shipbuilding ranks first in the world in terms of hand-held orders in this ship type field. At the same time, Beihai Shipbuilding is currently the only shipyard in the world that builds ammonia dual fuel large bulk carriers. According to Clarkson's data, out of the existing 138 large bulk carriers, a total of 9 are ammonia twin fuel ships. Except for Kawasaki Motor Corporation's 200000 deadweight ton ship ordered from Imabari Shipbuilding this year, the remaining 8 are all 210000 deadweight ton bulk carriers ordered by Belgian shipowner CMB from North Sea Shipbuilding.

The 210000 deadweight ton ammonia dual fuel bulk carrier of Beihai Shipbuilding can be equipped with two 3000 cubic meter ammonia fuel storage tanks, achieving "zero carbon" operation throughout the entire voyage.

In addition to ammonia dual fuel, Beihai Shipbuilding also jointly developed the world's first methanol fuel powered 210000 dwt bulk carrier design with CSIC before, and won the American Classification Society (ABS) Certificate of Approval in Principle (AIP) in September 2022.

Excluding the latest orders, Clarkson's data shows that as of now, North Sea Shipbuilding has a total of 56 orders of 12.95 million deadweight tons, including 41 Newcastle Max bulk carriers, 8 325000 deadweight ton ultra large ore carriers (VLOCs), 5 319000 deadweight ton ultra large crude oil tankers (VLCCs), and 2 5598 TEU container ships, with delivery scheduled until 2028.