Proman and HMM announce new methanol supply MoU for HMM’s nine dual-fuel newbuilds

February 14, 2023, Wollerau, Switzerland – Leading methanol producer, Proman and HMM, the largest shipping company in Korea, are joining forces to explore future methanol supply for HMM’s new order of nine methanol dual-fuel 9,000-teu newbuildings.

HMM has signed a Memorandum of Understanding (MoU) with Proman and a number of other producers and fuel suppliers, including PTTEP, European Energy and Hyundai Corporation, to further secure the supply of methanol for its newly-ordered vessels.

HMM will conduct a feasibility study with each partner to procure various types of methanol in HMM’s main bunkering ports and, subsequently, will collaborate to produce green methanol as part of developing this carbon-neutral alternative fuel.

By switching to this cleaner-burning fuel, HMM’s methanol-powered vessels are expected to lead the broader transition to a lower carbon future in the wake of methanol’s proven long-term decarbonisation pathway.

Peter Schild, Proman’s Managing Director for Sustainability, welcomed the MoU, saying: “Partnerships like this are vital if we want to make tangible progress towards meeting the shipping sustainability challenge. Proman and HMM have complementary skills enabling them to jointly develop this concept for HMM to benefit from a methanol-based pathway to a sustainable future. We look forward to exploring possibilities for both newbuildings and retrofits, enabling HMM as a leading shipping company to experience the immediate environmental benefits and greenhouse gas emission reductions delivered by methanol.”

President and CEO of HMM, Kim, Kyung Bae said: “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.”

All forms of methanol significantly reduce greenhouse gas emissions compared to conventional oil-based fuels, bringing an immediate improvement in air quality around ports and shipping lanes. Sulphur oxides (SOx) and particulate matter emissions are virtually eliminated, carbon dioxide (CO2) emissions are reduced, and nitrogen oxides (NOx) emissions are cut by 80%. Furthermore, methanol’s biodegradable and water-soluble qualities significantly reduce the risk to marine environments.

As low-carbon and renewable methanol production increases over the near-term, greater volumes can be blended into the marine fuel pool to drive down carbon intensity and meet shipowners’ sustainability targets, as well as global emissions reduction goals. Methanol produced from natural gas brings an immediate CO2 reduction which increases to over 90% for methanol made using renewable electricity or sustainable biomass. This pathway makes methanol one of the attractive alternative fuels for shipowners seeking both immediate and long-term emissions reductions.

HMM intends to seek more opportunities to invest in various renewable solutions to achieve its target of net zero by 2050.