COSCO Shipping in first Chinese green MeOH supply chain MoU

The announcement follows the signature of a memorandum of cooperation between COSCO Shipping, Shanghai International Port Group (SIPG), State Power Investment Corporation Limited (SPIC) and China Certification & Inspection Group (CCIC) on 20 September relating to the construction of “a Green Methanol Industrial Chain”.

The agreement signifies the start of the actual construction phase for the comprehensive industrial chain cooperation project, which encompasses the production, transportation, refuelling, and certification of green methanol for ships. It represents a significant step towards the application of new energy and the green transformation of the shipping industry.

No details about the green methanol production projects under consideration, their proposed production capacities nor the production route were provided. 

The Motorship notes that while the agreement’s most high-profile announcement is that it will see the parties support the the development of the first batch of green methanol production projects in China, the project is also important for the promoting the development of certification processes that may eventually permit China to export green methanol to customers outside the country.

The model of industrial cooperation in the expansion of the green methanol industry chain is also expected to act as a model of green industry collaboration that can be applied to other green fuels for shipping. The announcement follows barely two days after Maersk and CMA CGM announced plans to collaborate on the development of the use of alternative greener fuels for container vessel propulsion.

COSCO Shipping has ordered 12 methanol dual-fuel container ships, each with a capacity of 24,000 TEU, which will be the largest methanol dual-fuel vessels in the world. The global orderbook for methanol-fuelled ships has expanded and now exceeds 200.

COSCO Shipping noted that the establishment of a green methanol industrial chain is not only necessary for shipping companies to align with the new trend of green, low-carbon, and intelligent shipping, but also to offer customers sustainable and eco-friendly global supply chain logistics services. The industrial chain is also expected to promote the development of green and low-carbon industries. 

COSCO Shipping has been supportive of methanol as a potential fuel since 2022. The chairmen of China Merchants Energy Shipping (CMES) and COSCO Shipping Bulk identified methanol fuel as their primary area of research in the future during discussions in August 2022.