First ever! HMM methanol-powered container ship delivered

On March 25, the first 9,000 TEU methanol-powered container ship, "HMM Green," ordered by HMM, South Korea's largest shipping company, was completed and delivered. It will be deployed on HMM's independently operated FIM (Far East Asia, India, and the Mediterranean Sea) new route connecting the Far East, India, and the Mediterranean Sea.

"HMM Green" is the first vessel in a contract for nine 9,000 TEU methanol-powered container ships signed by HMM with HD Hyundai Group's shipbuilding holding company, HD Hyundai Heavy Industries, and HJ Heavy Industries on February 14, 2023. The total contract value for the nine ships is 1.4128 trillion won (approximately US\$1.113 billion), equivalent to US\$123.7 million (approximately 900 million RMB) per ship. Seven ships will be built by HD Hyundai Mipo Dockyard, and two by HJ Heavy Industries, with plans for delivery between 2025 and 2026. This is the first time HMM has ordered methanol-powered container ships, making it the fourth shipping company globally to join the methanol fuel camp, following Maersk, CMA CGM, and COSCO Shipping Group.

Simultaneously, HMM signed Memoranda of Understanding (MOUs) with five domestic and international companies, including Proman, PTTEP, European Energy, and Hyundai Corporation, for methanol production and supply. An MOU was also signed with the Korea Ocean Business Corporation (KOBC) for financial cooperation. KOBC will provide financial support for HMM's construction of these nine methanol-powered container ships and plans to continue cooperation in the field of eco-friendly vessel investment in the future.

In July 2022, HMM released its medium- and long-term strategic vision and investment plan for the next five years, announcing an investment of over 15 trillion won (approximately US\$11.8 billion) from 2022 to 2026 for the construction of new ships and core assets such as ports, terminals, and logistics facilities, aiming to build a world-class shipping and logistics company. Of this, 4 trillion won (approximately US\$3.067 billion) will be invested in building new eco-friendly vessels, including container ships and bulk carriers. The order of methanol-powered ships is the first step for HMM to strengthen its eco-friendly fleet competitiveness.

"HMM Green" uses a new generation of eco-friendly bio-methanol fuel. Compared to traditional energy ship fuels, methanol has significant advantages: it contains no nitrogen oxides or sulfur, has low particulate matter (PM) emissions; it has high technological maturity and requires minimal ship modification; it is safe to use, easy to refuel, and relatively low in cost. Especially in recent years, the continuously rising Price has increased the operating costs of LNG-powered ships, and the construction cost of LNG dual-fuel ships is higher than that of methanol-powered ships, while methanol dual-fuel ships are easier to build.

"HMM Green" not only uses methanol as an eco-friendly fuel but is also equipped with various eco-friendly technological devices. The ship is equipped with a nitrogen oxide emission reduction device required for voyages in North America, shore power equipment (AMP) and electric heaters (replacing boiler functions) to prevent pollution emissions from generators when the ship is berthed in port, and a ballast water management system (BWTS) to prevent damage to marine ecosystems, among other equipment required by major ports worldwide, allowing it to operate without route restrictions.

With the operation of methanol-powered container ships, HMM's environmental competitiveness will be further enhanced. The EU ETS (European Union Emissions Trading System) stipulates that if a ship uses fuel that reduces carbon emissions by more than 65%, its carbon emissions are considered zero, which greatly reduces HMM's operating burden. In addition, the use of this batch of methanol-powered container ships will help HMM meet the emission reduction standards (2% reduction compared to the previous year) proposed by FuelEU Maritime for 2025.

HMM plans to receive the remaining eight sister ships successively before the first half of next year, starting with the delivery of "HMM Green." HMM officials said: "Recently, with the increase in the number of eco-friendly fuel ships such as methanol and LNG, HMM is closer to achieving its '2045 Netzero' goal. In the future, we will actively engage in the research and development of various new-generation eco-friendly fuels such as ammonia and hydrogen, and continue to practice our eco-friendly Business Philosophy."