ESL Shipping is building a series of four new, methanol-fuelled multipurpose vessels. These new 1A ice-class vessels are the top of the market in terms of cargo capacity, technology and innovation. The total value of the four ships is approximately EUR 186 million and ESL Shipping has the option to expand the order with several ships.
The competitiveness of these next-generation vessels is based on increasing customer preference towards fossil-free cargo solutions over time, market-leading energy efficiency, efficient and flexible cargo space design and lower operating costs. The new vessels can be operated entirely fossil-free by using green hydrogen-based e-methanol or biomethanol.
“Our strategy is based on sustainability leadership and our unique ability to develop and provide reliable infrastructure for the ice-bound Nordic green transition industries. We have developed these state-of-the-art, highly flexible multi-fuel vessels in close cooperation with our industrial partners,” says Mikki Koskinen, Managing Director of ESL Shipping.
The vessels will be built in Nanjing, China at China Merchants Jinling Shipyard (Nanjing) Co, Ltd. and they will enter service between the third quarter of 2027 and the first quarter of 2028.
The design of the vessels and comprehensive model tests have been carried out together with leading Finnish ship designer Deltamarin Ltd and the Swedish SSPA model test facility. ESL Shipping has been closely involved in the design of the vessels to ensure that they are fully tailored to meet local customer needs. The majority of key equipment, such as powertrain including battery hybrid drive, cargo handling equipment and many other leading technologies come from European companies.
“This investment is fully aligned with Aspo’s portfolio vision and financial ambition as communicated on Aspo’s capital markets day on May 14, 2024. ESL Shipping aims to be at the forefront in supporting its industrial partners towards delivering entirely fossil-free products and services. This investment in fossil-free handysize vessels is a natural step to take now, when the still ongoing investment in low-emission hybrid coasters has proven to be highly successful”, says Rolf Jansson, CEO of Aspo and Chairman of the Board of ESL Shipping.
ESL Shipping has strengthened its balance sheet by an equity injection of EUR 45 million as communicated previously on February 8, 2024. In connection with the vessel order, the possibilities of using various ship ownership and financing solutions to accelerate business growth and expand the service will be explored. This may include, among others, pooling as a financial instrument, already successfully used by ESL Shipping when financing the hybrid coaster vessels. The actions and the timing will be done in line with Aspo’s portfolio strategy and financial targets.
Main particulars of the vessels:
- DWT: 17,000 mt
- Length: 150 m
- Breadth 23.77 m
- Shallow draft: 8.6 m
- Ice class: 1A
