Hafnia Places Orders for New Dual-Fuel Methanol Chemical IMOII MR Vessels

In collaboration with their Joint-Venture partner "Socatra of France," Hafnia has successfully finalized an order for the construction of four dual-fuel Methanol Chemical IMOII Medium-Range (MR) Newbuilds, each with a deadweight of 49,800, at Guangzhou Shipyard International (GSI) in China.

This strategic move aligns harmoniously with Hafnia's core sustainability values and its forward-looking commitment to transitioning towards a more environmentally conscious maritime sector. Significantly, this marks Hafnia's pioneering foray into the realm of dual-fuel methanol vessels, reflecting the company's determination to embrace innovative solutions that align with greener and more sustainable practices.

A notable precursor to this venture was witnessed in 2023 when Hafnia successfully welcomed two of its four Liquified Natural Gas (LNG) dual-fuel LR2 Product Tankers – the Hafnia Languedoc and Hafnia Loire, also constructed at GSI. With the remaining vessels scheduled for delivery by 2024, the Hafnia Languedoc and Hafnia Loire are currently engaged in a Time-Charter agreement with TotalEnergies.

The increasing prominence of green methanol-fueled vessels attests to its merits as a cleaner marine fuel, characterized by a proven and forward-looking net-zero pathway. By embracing such innovations, Hafnia continues to stride towards meeting the International Maritime Organization's (IMO) ambitious 2050 targets.

The deployment of green methanol onboard these vessels brings forth multifaceted benefits. Notably, it eliminates local pollutants such as sulfur oxides (SOx) and Particulate Matter (PM), while concurrently reducing nitrogen oxides (NOx) emissions by an impressive 60%. Additionally, carbon dioxide (CO2) emissions are nearly eradicated on a tank-to-wake basis when compared to conventional marine fuels.

The timeline for this venture is clearly outlined, with three out of the four vessels slated for delivery in 2025, while the fourth is expected in 2026. The strategic alignment between these vessels and TotalEnergies' shipping entity CSSA is emphasized by multi-year Time-Charter agreements.

Reflecting on this milestone, Søren Steenberg Jensen, Head of Asset Management, emphasizes the proactive stance Hafnia is taking towards decarbonizing the maritime industry. Jensen underscores the significance of timely actions in the face of carbon emissions challenges, acknowledging the vital role of partnerships with Charterers to render sustainable financial viability.

Jensen elaborates on the vital role of partnerships, stating that the cost of emerging fuel technologies can pose a challenge if not supported by long-term contracts. The collaboration with TotalEnergies is indeed commendable, as it showcases a shared commitment to driving this transition, ensuring financial feasibility alongside environmental stewardship.

This collaboration marks the second instance where Hafnia and TotalEnergies have united to pave the way for low-carbon shipping solutions. Jerome Cousin, Senior Vice President of Shipping at TotalEnergies, underscores the company's resolve to champion low-carbon shipping in response to the International Maritime Organization's ambitious decarbonization targets. The dual-fuel methanol propulsion strategy aligns seamlessly with TotalEnergies' aspirations, offering a pivotal avenue to steer its shipping activities towards a more sustainable future. The partnership with Hafnia and Socatra of France signifies an expanded relationship that aims to deliver safe, efficient, and low carbon shipping services, thereby advancing the collective endeavor towards greener maritime practices.