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ESL Shipping Leads the Green Transition with E-Methanol-Powered Bulk Carrier Order

27
Oct

(Source: ESL Shipping)

In a bold move toward sustainable shipping, Finland’s ESL Shipping has announced the order of four methanol-powered Handysize bulk carriers from China Merchants Jinling Shipyard (Nanjing). These new vessels, designed with 1A ice-class capabilities, will be fully fossil-free, able to operate using e-methanol showcasing ESL’s commitment to environmental leadership and its support of the Nordic green transition.

With a total investment of approximately €186 million, this new fleet underlines ESL Shipping’s strategy to lead in sustainability within the industry. This order also includes options for expanding the fleet, reflecting the company’s long-term view on fossil-free operations. Mikki Koskinen, Managing Director of ESL Shipping, stated that these vessels will serve as essential infrastructure for industries across the ice-bound Nordic region, where sustainable energy transitions are increasingly critical. ESL’s investment is aligned with the vision shared by Aspo Group (ESL’s parent company), which has set ambitious financial and sustainability goals.

“This investment in fossil-free Handysize vessels marks a significant step forward as we continue to build on the success of our low-emission hybrid vessels,” said Aspo’s CEO Rolf Jansson, who also chairs ESL’s board. “ESL Shipping is proud to support its industrial partners in delivering entirely fossil-free products and services.” This announcement builds upon ESL’s recent successes with hybrid coasters, a strategy that has proven highly effective in reducing emissions and enhancing operational efficiency.

Technological Innovation and European Collaboration

Designed collaboratively with Finnish ship designer Deltamarin and Swedish SSPA, the new vessels leverage advanced European technology. They include a hybrid powertrain system equipped with battery packs, European cargo-handling systems, and shore power capabilities. This technological approach aligns with ESL Shipping’s vision for advanced, adaptable fleet design, which the company believes is crucial for supporting zero-emission operations in the near future.

Commitment to Science-Based Climate Targets

In January 2024, ESL Shipping joined the Science Based Targets initiative (SBTi), committing to both short- and long-term emission reduction targets. The company has committed to reducing its emission intensity per ton-mile by 50% by 2023 and achieving net-zero emissions by 2040, a timeline even more ambitious than its original 2050 goal. This commitment aligns with SBTi’s goals of halving emissions by 2030 and achieving net-zero by 2050, a framework developed by global organizations such as the United Nations Global Compact and the World Wide Fund for Nature (WWF).

(Source: ESL Shipping)

Expanding Green Fuel Infrastructure

ESL’s broader roadmap includes working with energy industry partners to develop an industrial-scale supply of green fuels, like e-methanol. Over the past few years, ESL has invested heavily in fleet renewal and environmental upgrades, totaling over €100 million. This included ordering twelve hybrid vessels equipped with battery systems and LNG-powered bulk carriers, demonstrating ESL’s proactive approach to future-proofing its operations.

With this order, ESL Shipping is setting an ambitious precedent for maritime decarbonization, investing not only in cutting-edge, fossil-free vessels but also in a strategy that will support green energy development in the Nordic region and beyond. These vessels are scheduled to enter service between 2027 and 2028.

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