Baltic shipping company ESL Shipping, a company in the Aspo group, has ordered a series of four new, fossil-free handysize vessels, with an option to increase the order for an unspecified number of extra ships.
The ships will be built at China Merchants Jinling Shipyard (Nanjing) to ice class 1A, with deliveries scheduled for 2027-28. Total value of the four ships is around €186m. The 150m long ships will be of 17,000 dwt capacity
According to ESL, the new series has been ordered based on an increasing customer preference towards fossil-free cargo solutions over time, market-leading energy efficiency, efficient and flexible cargo space design and lower operating costs. The new vessels can be operated entirely fossil-free by using green hydrogen-based e-methanol or bio-methanol.
ESL Shipping MD Mikki Koskinen said: “Our strategy is based 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 design of the vessels and comprehensive model tests have been carried out together with Finnish ship designer Deltamarin and the Swedish SSPA model test facility. ESL Shipping has been closely involved in the design of the vessels to ensure that they are fully tailored to meet local customer needs. The majority of key equipment, such as powertrain including battery hybrid drive, cargo handling equipment and many other leading technologies come from European companies.
The innovative design features an accommodation block at the bow, allowing long project cargo to extend over the stern, further highlighting the vessel’s adaptability. By integrating tweendecks to maximise capacity, the vessels can transport a variety of mixed cargo when needed. Their flexible design enables the vessels to respond to evolving logistical demands while ensuring operational efficiency, with the capability to operate using alternative fuels from day one.
Rolf Jansson, CEO Aspo and Chairman ESL Shipping said: “This investment is fully aligned with Aspo’s portfolio vision and financial ambition as communicated on Aspo’s capital markets day on May 14, 2024. ESL Shipping aims to be at the forefront in supporting its industrial partners towards delivering entirely fossil-free products and services. This investment in fossil-free handysize vessels is a natural step to take now, when the still ongoing investment in low-emission hybrid coasters has proven to be highly successful.”
Earlierin 2024, ESL Shipping strengthened its balance sheet by an equity injection of €45m. In connection with the vessel order, the possibilities of using various ship ownership and financing solutions to accelerate business growth and expand the service will be explored. This may include, among others, pooling as a financial instrument, already successfully used by ESL Shipping when financing hybrid coastal vessels.
Image: ESL Shipping’s Handysize fossil-free vessel (credit: ESL Shipping)
