Maersk Bets on Bio-LNG with Newbuilding Orders
A.P. Moller - Maersk (Maersk) is in the process of signing newbuilding orders and time-charter contracts for LNG dual-fuel container ships.
The new orders for 50-60 vessels will match its planned renewal pace of around 160,000 TEU per year.
The new orders are a continuation of its fleet renewal program initiated in 2021 which has seen orders placed for 25 methanol dual-fuel vessels, five in service and 20 on order providing around 350,000 TEU of dual-fuel capacity.
The exact split of propulsion technologies for the new vessels will be determined considering the future regulatory framework and green fuels supply.
Maersk has commenced the work of securing offtake agreements for bio-LNG to ensure that the new dual-fuel gas vessels provide greenhouse gas emissions reductions in this decade.
Maersk says its mix of methanol and LNG dual-fuel propulsion choices will ensure the long-term competitiveness of the fleet and its ability to deliver on the decarbonization goals. While green methanol is likely to become the most competitive and scalable pathway to decarbonization in the short term, Maersk also foresees a multifuel future for the industry which includes liquified bio-methane.
Once the vessels have been delivered, around 25% of the Maersk fleet will be equipped with dual-fuel engines.
“Our fleet renewal program is fundamental to maintaining competitive edge in our ocean business, and it is a cornerstone in decarbonizing our operations,” said Rabab Boulos, Chief Operating Officer at Maersk. “As the shipyard orderbooks have been filling up quickly and lead time for vessel deliveries have increased significantly, we decided to place orders and charter contracts of 800,000 TEU dual-fuel vessels, which ensures a steady flow of needed capacity for our network for the years 2026-2030 while building a competitive toolkit.”
The ordered capacity will be a mix of owned and chartered, ensuring that Maersk maintains strong financial and operational flexibility while continuing to own a significant part of its strategic tonnage. Approximately 300,000 TEU will be owned capacity while the remaining 500,000 TEU is planned through time-charter agreements.
The vessels also come in different sizes to ensure network optionality.
The orders will not add to the overall capacity and over time every vessel coming in will be replacing a scrapped vessel having reached end of life, ensuring that the company maintains its fleet size at around 4.3 million TEU.
“By diversifying our fleet and fuel options, we gain the flexibility, knowledge, and experience to cater to a future with multiple fuel paths,” said Ahmed Hassan, Head of Asset Strategy & Strategic Partnerships at Maersk.