ESL Shipping Places Order for Four Baltic Bulkers Powered by Green Methanol

ESL Shipping is set to construct four new fossil-free handysize vessels, representing a significant advancement in maritime technology. These 1A ice-class vessels will lead the market in cargo capacity, innovation, and technology. The total investment for the four vessels is estimated to be around €186 million, and ESL Shipping holds the option to increase the order.

The competitiveness of these next-generation vessels is driven by a growing customer preference for fossil-free cargo solutions, enhanced energy efficiency, flexible cargo space design, and reduced operating costs. The vessels will be capable of operating entirely fossil-free, utilizing green hydrogen-based e-methanol or biomethanol as fuel sources.

Mikki Koskinen, Managing Director of ESL Shipping, stated, "Our strategy is centered 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."

The new vessels will be constructed at China Merchants Jinling Shipyard (Nanjing) Co., Ltd., with an expected delivery timeline between the third quarter of 2027 and the first quarter of 2028. The design phase and extensive model testing have been conducted in collaboration with leading Finnish ship designer Deltamarin Ltd. and the Swedish SSPA model test facility. ESL Shipping has played an active role in tailoring the vessel designs to meet local customer needs.

Key equipment for these vessels, including the powertrain with battery hybrid drives and cargo handling systems, will primarily be sourced from European companies, further emphasizing the investment in local technological expertise.

Rolf Jansson, CEO of Aspo and Chairman of the Board of ESL Shipping, remarked, "This investment aligns perfectly with Aspo’s portfolio vision and financial ambitions as communicated during our capital markets day on May 14, 2024. ESL Shipping aims to lead in supporting its industrial partners in delivering entirely fossil-free products and services. Investing in fossil-free handysize vessels is a natural progression, particularly after the success of our ongoing investments in low-emission hybrid coasters."

Additionally, ESL Shipping has strengthened its financial position with a €45 million equity injection, as previously announced on February 8, 2024. In conjunction with the vessel order, ESL Shipping plans to explore various ownership and financing solutions to accelerate business growth and enhance services. These options may include pooling, a financial strategy successfully utilized for financing hybrid coaster vessels, ensuring alignment with Aspo’s portfolio strategy and financial objectives.

The new vessels feature impressive specifications designed for optimal performance and efficiency. With a deadweight tonnage (DWT) of 17,000 metric tons, each vessel measures 150 meters in length and 23.77 meters in breadth, providing a robust structure for carrying cargo. They are designed with a shallow draft of 8.6 meters, allowing for enhanced maneuverability in various water conditions. Additionally, the vessels are classified as ice class 1A, making them well-suited for operation in challenging icy environments.