Evergreen Marine and SIPG Collaborate for Green Methanol Bunker Fuel Supply

In a significant development on December 13, Shanghai International Port Group (SIPG) and Taiwanese shipping giant Evergreen Marine Corporation formalized their collaboration by signing a memorandum of understanding (MoU). The focus of this strategic partnership is to facilitate the supply of green methanol bunker fuel for ships operating in the Shanghai Port.

Under the terms of the agreement, SIPG will take charge of green methanol procurement, supply, and bunkering services for the dual-fuel methanol-powered ships that Evergreen plans to integrate into its fleet between 2026 and 2027. This collaborative effort aims to establish a low-carbon and environmentally friendly maritime environment within the Asia-Pacific region's energy hub port, emphasizing the commitment to sustainable practices in the shipping industry.

SIPG highlighted the significance of this milestone, framing it as a pivotal moment in the ongoing collaboration between the two entities. Furthermore, it emphasized the importance of this initiative in SIPG's broader strategy to build a comprehensive green methanol industry chain. This aligns with their broader objectives of fostering the growth of green and low-carbon emerging industries, promoting industry-wide energy transformation, and contributing to high-quality development.

Gu Jinshan, in particular, underscored the impact of the memorandum, noting that it not only solidifies the cooperation between SIPG and Evergreen but also serves as a catalyst for joint exploration into green shipping initiatives. This emphasis on sustainability reflects a shared commitment to environmentally conscious practices within the maritime sector.

Zhang Yanyi echoed these sentiments, expressing confidence that the collaboration with SIPG will play a pivotal role in enhancing Evergreen's ability to navigate the evolving landscape of the green methanol fuel market. The joint effort is expected to position Evergreen as a proactive and resilient player in the face of future industry challenges.

This collaboration follows Evergreen's announcement regarding its substantial order for methanol dual-fuel containerships. The company revealed plans to procure 24 such vessels from two prominent Asian shipyards, with a staggering estimated total value of up to USD 5 billion. In a stock exchange filing made on July 11, Evergreen disclosed that its subsidiary, Evergreen Marine (Asia) Pte Ltd, had placed an order for 16 units of 16,000-TEU container vessels from the renowned South Korean shipyard, Samsung Heavy Industries. Each vessel is anticipated to cost between USD 180,000 and USD 210,000, resulting in an overall project cost ranging from USD 2.88 billion to USD 3.36 billion.

This substantial investment by Evergreen not only underscores the company's commitment to innovation but also aligns seamlessly with the broader goals of the collaborative venture with SIPG. The decision to embrace methanol dual-fuel technology reflects a forward-looking approach, positioning Evergreen at the forefront of sustainable shipping practices.