China’s shipbuilding plan focuses on methanol and LNG

China has set an ambitious goal to secure a 50% share of the global orderbook for LNG and methanol-capable newbuilds by 2025.

PHOTO: Flag of China. Getty Images

China’s Ministry of Industry and Information Technology (MIIT) recently released a seven-year plan to support its shipbuilding sector. The initial goal is to help Chinese shipyards secure over 50% of global LNG and methanol newbuild vessel orders by 2025, MIIT stated in its plan.

A central pillar of China’s shipbuilding industry's development strategy revolves around the robust integration of methanol and LNG technologies. China aims to create an ecosystem that accelerates the adoption of LNG and methanol-capable ships, as well as the development of ship propulsion systems for methanol and other alternative fuels, along with fuel cell systems.

China's specific focus on supporting its shipyards to increase the construction of methanol and LNG newbuilds aligns with the growing global popularity of these fuels among shipowners. According to classification society DNV data, the LNG-fuelled fleet is currently made up of 460 vessels, with another 405 vessels to join next year. This reflects the increasing adoption of LNG in the maritime industry.

Moreover, the global methanol fleet, currently consisting of 29 vessels, is anticipated to see substantial growth with an additional 77 vessels expected to join the fleet next year, according to DNV data.

Other objectives

The plan sets clear milestones for researching, developing, and demonstrating the application of biodiesel, ammonia, hydrogen, and other green energy sources in various ship categories, including passenger ships, cargo ships, engineering ships and fishing boats.

The plan also commits to research and development of technologies related to electrification and battery-powered ships.

By Tuhin Roy

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