South Korean shipping line HMM has placed a $1.2 billion order for nine 9,000 TEU capacity dual-fuel containerships powered by methanol.

The shipbuilding contracts were signed with Hyundai Samho Heaving Industries and HJ Shipbuilding and Construction, which will construct seven and two ships, respectively.

“In last July, HMM unveiled a mid-to-long-term strategy to leap forward to be a global top-rated shipping and logistics company through enhancing fleet competitiveness,” HMM said in a statement. “With the order of methanol-powered containerships, HMM has taken an initial step toward expanding its eco-friendly fleet using alternative fuels.”

HMM has set its ambition of becoming net-zero carbon emissions by 2050.

For its methanol fuel supply, HMM says it has signed Memorandums of Understanding with five fuel supplies, including Proman, PTTEP, European Energy, Hyundai Corporation.

“HMM will conduct a feasibility study with each partner to procure various types of methanol in its main bunkering ports and, subsequently, will collaborate to produce green methanol as part of developing carbon-neutral fuels,” HMM said.

The ships are scheduled to be deployed on Asia-North/Latin America trade lanes and Asia-India routes, with deliveries in 2025 and 2026.

“In particular, green shipping corridors between Busan in Korea and key ports in the U.S. are also one of the potential routes to operate the new ships,” HMM said.

You may recall… South Korea and the U.S. agreed to a technical cooperation at COP27 in November to accelerate the decarbonization of shipping, including a feasibility study to explore the potential for green shipping corridors between the two countries.

“We will continue to drive efforts to support the global community’s broader transition to carbon neutrality while at the same time strengthening our fundamental level of future capability in the face of increasingly fierce competition in the global market.” said Kim Kyung Bae, President and CEO of HMM.

.