COSCO and MAN See Potential to Retrofit up to 4,500 Ships to Alternative Fuels

COSCO and MAN team up to retrofit ships to run on alternative marine fuels. Image Credit: MAN Energy Solutions

COSCO Shipping Heavy Industry (CHI) and MAN Energy Solutions have signed a new framework agreement aimed at accelerating retrofitting projects to reduce emissions from the global fleet, with some 4,500 vessels identified for potential conversion to cleaner marine fuels.

The agreement will see the two companies deepen their collaboration on converting existing ships to run on alternative fuels such as methanol, ammonia and synthetic methane, MAN Energy Solutions said in a statement on Wednesday.

These retrofits are viewed as a vital pathway for reducing GHG emissions in the maritime sector, without relying on newbuilds.

"This agreement means we can join forces on many future projects to ensure the decarbonisation of the existing commercial fleet worldwide," Michael Petersen, SVP and Head of PrimeServ Denmark at MAN Energy Solutions, said.

"There are some 4,500 vessels globally with the potential to benefit from changing their current bunker fuel to more environmentally-friendly options."

Under the agreement, MAN Energy Solutions will provide advanced dual-fuel engine retrofit technologies and digital energy-efficiency solutions.

CHI will contribute its extensive EPC (engineering, procurement and construction) capabilities across its five shipyards, which collectively can modify or repair up to 1,500 vessels a year.

"This cooperation will inject fresh impetus into the green transition of the global maritime industry, Guo Zhiqiang, deputy general manager at CHI's Commercial Headquarters, said.

"By integrating our modification expertise with MAN's cutting-edge engine solutions, we're creating a powerful platform for change."

The two firms are already working on retrofitting projects for two leading container shipowners, seen as the initial rollout of this expanded cooperation.