Terntank Lands Charters for New Methanol and Wind-Ready Product Tankers

Finnish-based Neste has announced a partnership with Swedish shipping company Terntank Rederi A/S to time charter two state-of-the-art, lower-emission methanol and wind assistance-ready product tankers.

The next-generation product tankers are designed to transport various liquid cargoes, including renewable raw materials like waste and residue oils and fats, to Neste’s refineries, where they will be processed into products such as renewable diesel and sustainable aviation fuel (SAF) before being transported to their final destinations.

Terntank ordered the vessels in November 2022. The new tankers, designed by Kongsberg, will be constructed at the CMHI Jinling Shipyard in Yangzhou, China with deliveries planned in the second half of 2025 and early 2026. Each vessel is capable of carrying up to 15,000 tons of chemicals and boasts innovative features such as foldable suction sails and a dual-fuel engine for using e-methanol as fuel. E-methanol, produced with Power-to-X technology, utilizes captured carbon and renewable energy sources.

The tankers will be ice-strengthened and equipped with Terntank’s Hybrid Solution® electric power supply system, battery pack, and on-shore power connection, allowing them to operate on low-emission fuels like e-methanol in pursuit of net-zero emission goals.

The tankers will emit 40 percent of CO2 than previous vessels and wind assistance will further reduce the emissions by 8 percent. The efficient design will result in an EEDI between 16-40% below the 2025 Phase 3 requirements.

“It is great to have Neste back again as a time charter partner after 10 years,” says Terntank owner Tryggve Möller. “We are happy to be able to provide them with the state-of-art product tankers and innovative technologies to minimize the environmental impact of shipping and work together towards carbon neutrality targets.”

Lauri Helin, Vice President Logistics and Operations, Oil Products at Neste, expressed excitement about the partnership, highlighting how it reinforces Neste’s commitment to sustainability and reducing emissions across its value chain. “With these vessels we continue to reduce the emissions and environmental impacts of transportation. We are delighted to partner with Terntank,” she said.