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SAFETY4SEA

Korea, China fight for methanol-powered ships orders

by The Editorial Team
March 14, 2023
in Fuels
methanol ships

Credit Image: Shutterstock

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According to Business Korea News, there is currently a competition between Korean and Chinese shipbuilders about which is taking more shipbuilding orders, as methanol-powered ships are rapidly emerging as next-generation eco-friendly ships.

Until now, most of the eco-friendly ships have been liquefied natural gas (LNG) ships, which have become the mainstream of the alternative fuel market in the shipping industry. But LNG is also evaluated as a transitional fuel to attain decarbonization goals.

In June 2021, KSOE won an order for a small methanol-powered container ship from Maersk, the world’s largest shipping company. The vessel is scheduled to go into a test run soon ahead of its delivery in the first half of this year. In August 2021, Himsen Engine was installed on the world’s first methanol-powered super-large container ship built by KSOE for Maersk.

RelatedNews

COSCO boxship receives first bunkering of domestic green methanol

China reports rapid growth in LNG and electric inland fleet

On the other hand, China only delivered four methanol-powered petrochemical carriers (PCs) last year. In the case of super-large methanol-powered vessels, Chinese shipbuilders still have only orders for them. They have never delivered them. Most of the orders were placed by Chinese clients.

A big problem facing Korean shipbuilders is that China is preparing an offensive in the high value-added ship market, including methanol-powered ships, by starting a price war. According to the industry, CMA CGM, the world’s third-largest shipping company in France, recently placed an order for six 15,000-TEU methanol propulsion ships with China’s Dalian Shipbuilding, not with a Korean shipbuilder. Korean shipbuilders and Dalian Shipbuilding fiercely competed for this order and China had the upper hand in terms of prices.

CMA-CGM, a French shipping company, is a member of the Ocean Alliance, a shipping alliance with China’s state-run shipping company COSCO. The two are cooperating with each other.

…said an official of the Korean shipbuilding industry.

“If an Ocean Alliance member builds a ship at a Chinese shipyard, the member company can expect favorable financial support from the Chinese government, giving them an advantage in order-taking competition.”

Korea, China fight for methanol-powered ships ordersKorea, China fight for methanol-powered ships orders
Korea, China fight for methanol-powered ships ordersKorea, China fight for methanol-powered ships orders
Tags: ChinaKoreaLNGmethanol
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