Evergreen places an order for 24 methanol-fuelled ships, totalling a staggering cost of almost $5 billion

Evergreen has recently made the strategic decision to invest in methanol dual-fuel new builds, joining other carriers in this trend. Rather than waiting for other alternative fuels to be commercialized, they are proactively turning to methanol as a technology that is readily available and meets the requirements for low emissions.

On July 11th, Evergreen announced that they had completed two contracts, representing a potential investment of up to USD 5 billion for new methanol dual-fuel containerships. This is a significant move for the carrier as it demonstrates a strong commitment to sustainability and environmental responsibility. In April 2023, brokers reported that the carrier had initiated a tender process to seek proposals from leading shipyards for a new class of containerships, further emphasizing their dedication to modernization and innovation in the shipping industry.

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Samsung Heavy Industries, a renowned South Korean shipbuilder, has won the lion's share of a significant order that encompasses 16 containerships. Based on the available construction slots at the facility, it is anticipated that the scheduled deliveries will begin in 2026. According to industry insiders, the contract value with Samsung Heavy Industries could range from USD 2.88 billion to USD 3.36 billion, making it a highly lucrative deal for the company.

According to industry speculation, it has been inferred that Evergreen had to divide their vessel order between multiple shipyards due to the limited capacity of each yard. It has been reported that they have signed a second contract with Nihon Shipyard Co., located in Japan, for eight vessels, each with a 16,000 TEU capacity. This contract has been signed for the same amount as the previous one, and its value is estimated to be between USD 1.44 billion to USD 1.68 billion.

Evergreen has always been at the forefront of the industry, making significant contributions such as building the first-ever vessels to exceed the 24,000 TEU hurdle. It is anticipated that these newly signed vessels will be deployed on the Asia-Europe route to comply with the emerging regulations of the European Union's Emissions Trading System (EU ETS) and other environmental requirements for shipping and ports in Europe.

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According to Procurement Resource, Evergreen has made the decision to purchase 24 containerships that run on methanol fuel. The cost of this purchase is almost $5 billion. Evergreen has signed two contracts, one with Samsung Heavy Industries for 16 vessels and another with Nihon Shipyard Co. for eight vessels. The deliveries are set to begin in 2026, based on the available building slots at the shipyards.