Methanol fuel capable newbuilds set to debut

APRIL 11, 2016 — This month, Waterfront Shipping, a subsidiary of the world's largest methanol supplier, Canada's Methanex Corporation, will welcome seven methanol-burning ships,

Waterfront is chartering the 50,000 dwt newbuilds to replace older vessels and expand its fleet. Two of the vessels are owned by Westfal-Larsen Management , two vessels are jointly owned by Marinvest/Skagerack Invest and Waterfront and the remaining three vessels are owned by Mitsui O.S.K. Lines, Ltd. (MOL). The ships have been built by Hyundai Mipo Dockyard and Minaminippon Shipbuilding Co., Ltd. The first three vessels are being delivered this moth with the remaining four to be delivered by October 2016.

All seven are built with first-of-a kind MAN B&W ME-LGI two-stroke dual fuel engines that can run on methanol, fuel oil, marine diesel oil, or gas oil.

This groundbreaking engine technology will significantly reduce emissions while giving shipowners a viable, efficient and convenient fuel alternative.

With the growing demand for cleaner marine fuel to meet environmental regulations, methanol is a promising alternative fuel for ships that can meet the industry's increasingly stringent emissions regulations. Methanol is a biodegradable, clean-burning marine fuel that reduces smog-causing emissions such as particulates, sulfur oxides and nitrogen oxides.

"Working with our partners to advance new, clean technology is an important and innovative step in the right direction. Investing in methanol-based marine fuel reinforces our commitment to invest in sustainable technology that not only provides environmental benefits but also an economically viable alternative marine fuel. The cost to build new and convert existing vessels to run on methanol is significantly less than alternate fuel conversions," stated Jone Hognestad, President, Waterfront Shipping.

"MAN developed these two-stroke engines in response to interest from the shipping world to operate on alternatives to heavy fuel oil and meet increasingly stringent emissions regulations. To hedge the risk of fuel price volatility, the vessels can switch between fuels, and operate cost-effectively," says Ole Grøne Senior Vice President, Head of Marketing and Sales, MAN Diesel & Turbo.

The traditional ship naming ceremony for two of the dual vessel vessels, owned by Westfal Larsen with the second as a joint venture with Waterfront Shipping/Marinvest, will take place in Korea on April 18; officially taking delivery on April 20 & 28.

"This investment is very much aligned with our vision and leadership to supply safe and environmentally friendly transports. The ability to run on a sulphur-free fuel offers great potential and provides innovative solutions for the world's energy needs," says Patrik Mossberg, Chairman, Marinvest.

"To be one of the shipping companies helping to lead this effort makes sense for our business. It's great to be part of an innovative solution," says Rolf Westfal-Larsen, President and CEO, Westfal-Larsen Management.

"We are excited and proud of the delivery of our first vessel, installed with the first dual-fuel engine in Japan," says Yoshikazu Kawagoe, Managing Executive Officer (Technical), Mitsui O.S.K. Lines, Ltd. "We are pleased that our technical expertise has been utilized for this commemorative occasion. Having these vessels operating on methanol marine fuel provides shippers and port facilities with a practical and diversified fuel solution that meets today's and tomorrow's emission requirements"

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