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Illustration of ESL's green handy-size newbuild bulk carriers

Image courtesy ESL Shipping

ESL Shipping Orders Four Green Methanol-Fueled Baltic Bulkers

Mike Schuler
Total Views: 593
October 9, 2024

Helsinki-based ESL Shipping, the Baltic region’s leading dry bulk carrier, has announced a major investment in four new fossil-free handysize vessels to run on green methanol.

The €186 million project marks a significant step towards sustainable maritime transport, with the option to expand the order with additional ships.

The 1A ice-class vessels will be designed to operate entirely on green hydrogen-based e-methanol or biomethanol, setting a new standard for eco-friendly shipping.

“Our strategy is based on sustainability leadership and our unique ability to develop and provide reliable infrastructure for the ice-bound Nordic green transition industries,” said Mikki Koskinen, Managing Director of ESL Shipping.

The vessels, to be constructed at China Merchants Jinling Shipyard in Nanjing, are scheduled to enter service between Q3 2027 and Q1 2028. Their design, developed in collaboration with Finnish ship designer Deltamarin Ltd and the Swedish SSPA model test facility, ensures they meet local customer needs while incorporating European-sourced key equipment.

“This investment is fully aligned with Aspo’s portfolio vision and financial ambition… ESL Shipping aims to be at the forefront in supporting its industrial partners towards delivering entirely fossil-free products and services,” said Rolf Jansson, CEO of Aspo and Chairman of the Board of ESL Shipping.

To support this initiative, ESL Shipping has strengthened its balance sheet with a €45 million equity injection. The company is exploring various ship ownership and financing solutions, including pooling, to accelerate business growth and expand services.

This investment not only positions ESL Shipping as a leader in green maritime transport but also responds to increasing customer preference for fossil-free cargo solutions. “This investment in fossil-free handysize vessels is a natural step to take now, when the still ongoing investment in low-emission hybrid coasters has proven to be highly successful”, added Jansson.

In addition to these vessels, ESL Shipping’s orderbook includes twelve plug-in hybrid newbuildings from India’s Chowgule & Company shipyard, with four already delivered. The delivery schedule calls for one vessel per quarter until the fall of 2026.

Main particulars of the vessels:

  • DWT: 17,000 mt
  • Length: 150 m
  • Breadth 23.77 m
  • Shallow draft: 8.6 m
  • Ice class: 1A

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