J.P. Morgan makes its first move into methanol-fueled newbuilds
Written by Nick Blenkey
The momentum towards methanol fueling continues to build. J.P. Morgan Global Alternative’s Global Transportation Group (JPMGTG) reports that institutional investors advised by it have concluded an order for two 49,800 dwt methanol dual-fueled methanol chemical IMO II medium-range (MR) newbuild tankers.
To be constructed at Guangzhou Shipyard International (GSI), in China, both vessels are scheduled to be delivered in 2026 and will be fixed on time-charter to TotalEnergies.
JPMGT says that the new order is its first in the dual fuel methanol space. JPMGTG already has experience in investing in LNG dual fueled vessels and says that this step into a new fuel type will enable it to set up an additional vector of green transportation. It notes that growing momentum in methanol-fueled vessels across other sectors such as containerships and dry bulk vessels continues to demonstrate the growing industry view that green methanol is set to become a game changer in the pursuit of net zero targets.
The use of green methanol onboard dramatically reduces pollutants, including SOx, NOx and Particulate Matter (PM) and, by capturing ambient CO2 in the production process, reduces CO2 emissions by nearly 100% on a net-neutral emissions basis.
“We are excited to be expanding our footprint in a new fuel technology, in line with our GHG reduction investment orientation,” said Andrian Dacy, global head, J.P. Morgan Alternative’s Global Transportation Group. “We are also pleased to have expanded our partnership with Total Energies, with whom we have developed a range of initiatives across a number of transportation segments. We look forward to working together in supporting TotalEnergie’s global commitment to a clean energy future.”
Jerome Cousin, senior vice president shipping at TotalEnergies, said: “In the midst of the rapid expansion of methanol as a marine fuel, TotalEnergies is taking a significant step forward by introducing MR tankers propelled by dual fuel methanol technology into our time-chartered fleet. This initiative aligns with the company’s commitment to reducing the carbon footprint of our shipping activity. With LNG as marine fuel already implemented on our larger size tankers, integrating methanol in its lower GHG content form, will play a key role in steering the carbon emissions reduction across our fleet.
“We are delighted to extend our enduring partnership with JP Morgan GTG, a like-minded ally dedicated to advancing low-carbon shipping solutions.”
