After a two-year collaboration with its Japanese partners, Nihon Shipyards and Mitsui & Co., Hong Kong-based dry bulk vessel owner and operator Pacific Basin Shipping Limited has announced an order for four 64,000 dwt dual-fuel low-emission vessels (LEVs).
This marks the third phase of Pacific Basin’s collaboration with the Japanese firms, following a joint study on alternative green fuels for its fleet and the subsequent development of the Ultramax ship design.
Key Details of the Order
The new vessels will be constructed by Nihon Shipyards and are scheduled for delivery in 2028 and 2029. These Ultramax LEVs boast an optimized design focused on fuel economy, including advanced engine technology and other upgrades.
The vessels are engineered to operate on conventional fuel oil as well as biofuel and green methanol. When produced using sustainable feedstocks and renewable energy, green methanol is classified as a “low-carbon” or even “net-zero” fuel on a lifecycle basis.
A Milestone for Net Zero Goals
“Ordering these vessels aligns with our longstanding initiative to develop commercially viable and efficient dual-fuel low-emission vessels, and represents a major milestone in our long-term plan to transition to net zero emissions by 2050,” said Martin Fruergaard, CEO of Pacific Basin.
He added, “We are confident that the vessels’ design, specification, and quality will meet our cargo customers’ requirements for safe, reliable, and low-emission transport well into the future.”
Strategic Green Fuel Partnerships
Pacific Basin has also signed a memorandum of understanding (MoU) with Mitsui & Co., providing access to increased volumes of green methanol. By integrating emissions pooling from its conventionally fueled vessels, the company anticipates that its LEVs will comply with and potentially benefit from upcoming FuelEU Maritime regulations and IMO greenhouse gas standards.
Furthermore, Pacific Basin is engaging with green fuel suppliers to secure bio-methanol, e-methanol, and biodiesel, aiming to expand its access to alternative fuels.
Confidence in Green Methanol
Since May 2022, Pacific Basin has been working closely with its Japanese partners and is confident that green methanol is currently the most suitable low-carbon marine fuel for its first generation of LEVs. However, the company remains committed to reevaluating other green fuel options as technology, safety, availability, and pricing evolve.
Broader Sustainability Efforts
In line with its environmental goals, Pacific Basin established a dedicated board-level Sustainability Committee earlier this year to align its business strategy with its climate neutrality targets.
