On January 13, 2024, the Hai Gang Zhi Yuan, China’s first methanol bunkering ship, commenced its inaugural journey following a successful conversion process at Zhoushan Putuo Changhong Shipbuilding Co. The vessel, formerly known as Jiuli 668, underwent a comprehensive 113-day retrofit at the Chinese shipyard.
During the conversion, the ship was equipped with an advanced methanol fuel system, aligning with the maritime industry’s increasing emphasis on cleaner and more sustainable fuel alternatives. Owned by Shanghai SIPG Energy Services Co., a subsidiary of SIPG Group, Hai Gang Zhi Yuan has a capacity of 16,000 cubic meters and is designed to transport methanol. Additionally, it is tailored for ship-to-ship bunkering operations during container loading and unloading, enhancing operational efficiency in response to the demands of modern port operations.
China Introduces Its First Methanol Bunkering Ship (Credits: Offshore Energy)
Approval in Principle (AIP) for the vessel’s design was granted by the China Classification Society (CCS) in July 2023, allowing the conversion process to commence in September. Zhejiang Seahead Ship Design and Research Institute Co, at that time, specified that the vessel would be equipped with essential features such as filling hoses, emergency release devices, dry break valves, and ESD systems to ensure safe and efficient operations.
SIPG is collaborating with industry partners, including COSCO Shipping, State Power Investment Corporation (SPIC), Shanghai International Port Group (SIPG), and China Certification & Inspection Group (CCIC), on China’s first green methanol industrial chain.
The initiative aims to drive shipping decarbonization and covers the production, transportation, refueling, and certification of green methanol for ships. The goal is to leverage the strengths of the participating companies to develop all key aspects of the green methanol industrial chain, meeting both domestic and foreign green certification standards.
The collaborative project also seeks to promote the implementation of the initial batch of green methanol production projects in China. Against the backdrop of the maritime industry’s pursuit of sustainability, the adoption of methanol as a marine fuel is gaining momentum, especially within the container shipping sector. This strategic shift is in response to global emissions reduction targets and regulatory pressures on the maritime sector.
Methanol’s growing popularity in the maritime industry is attributed to its compatibility with existing infrastructure and the availability of technologically mature solutions, particularly methanol-powered marine engines. In 2023, the maritime industry experienced a notable uptick in the adoption of alternative fuels, as reported by DNV’s Alternative Fuels Insight (AFI) platform.
A total of 298 ships with alternative fuel propulsion were ordered, marking a substantial increase from previous years. Methanol emerged as the primary choice, with 138 ships ordered, a significant jump from the 35 ordered the previous year. Container ships accounted for the majority of these orders, totaling 106. LNG, as the second most popular alternative fuel, saw 130 vessels ordered, albeit showing a decline from the 222 orders in 2022.
