German shipping and container transport company Hapag-Lloyd has signed contracts with two Chinese shipyards for a total of 24 new container ships which will be equipped for both liquefied natural gas (LNG) and biomethane and will be ammonia-ready.
Twelve of the ships will be built by Yangzijiang Shipbuilding Group to expand capacity. The other 12 ships have been ordered from New Times Shipbuilding Company and will replace older units in the Hapag-Lloyd fleet that will be nearing the end of their service life in this decade.
Shipping generates 3% of global greenhouse gas (GHG) emissions, primarily from the burning of fossil fuels. The European Union’s Emissions Trading System (ETS) requires shipping companies to purchase and use emission allowances for each ton of reported CO2 or equivalent starting in 2025. The first year, companies will only have to apply ETS for 40% of their emissions, gradually increasing to 100% in 2027. Additionally, the International Maritime Organization requires ships to calculate their energy efficiency and their carbon intensity with the goal of reducing the industry’s carbon intensity by at least 40% by 2030, compared to 2008.
Building new dual-fuel ships that can run on both fossil fuels and more sustainable fuels is a step many shipping companies are making in the transition.
“This investment is one of the largest in the recent history of Hapag-Lloyd, and it represents a significant milestone for our company as it pursues the goals of its Strategy 2030, such as to grow while also modernizing and decarbonizing our fleet.” said Rolf Habben Jansen, CEO of Hapag-Lloyd AG.
