HONG KONG-based Pacific Basin Shipping has placed an order for four dual-fuel methanol ultramax dry bulkers, in a push to develop commercially viable low-emission vessels in this segment.

Pacific Basin said two of the 64,000 dwt vessels were contracted jointly with Japan’s Imabari Shipbuilding and its joint venture arm Nihon Shipyard, while the other pair were contracted with Japanese trading giant Mitsui & Co.

All of them — capable of burning conventional fuel oil, biofuel and green methanol — will be constructed by Nihon Shipyard and are scheduled for delivery between 2028-2029.

Financial details were not disclosed, although a methanol dual-fuel specification ultramax bulker is estimated to have a price tag of around $40m, around $5m higher than for its conventional fuel version.

The order caps a two and a half year joint development project between the companies to create the dual-fuel tonnage.

Nihon Shipyard will equip them with a newly optimised hull design focused on fuel efficiency and the latest engine technology. Upgrades to operational capabilities and safety will also be incorporated, according to the statement.

Orders for methanol-powered ultramax bulkers have been rare so far. Before Pacific Basin, the only recorded order was placed by Lemissoler Navigation in May this year at CSSC Huangpu Wenchong Shipbuilding for four 65,000 dwt ships, with an option for another four.

Such dual-fuel propulsion systems are primarily used for larger dry bulkers, particularly kamsarmax vessels, but their scale remains negligible compared to the adoption of methanol fuel in the containership sector, where trading routes are relatively fixed, making it easier to secure fuel.

Pacific Basin said it also entered into a memorandum of understanding with Mitsui & Co at the same time for green methanol supply to enable the new ships upon delivery.

“The company is in dialogue with several green fuel suppliers and producers to develop its access to bio-methanol and e-methanol, as well as biofuel (biodiesel).”

Through emission pooling, these newbuildings will also help other conventionally-fuelled Pacific Basin bulkers to comply with and even benefit from coming FuelEU Maritime rules and expected emission-cutting requirements from the International Maritime Organization.

Chief executive Martin Fruergaard called the order a major milestone in Pacific Basin’s plan to reach net zero emissions by 2050.

“We are confident that the vessels’ design, specification and quality will meet our cargo customers’ requirement for safe, reliable and low-emission transport well into the future.”

He added that this creates significant options for Pacific Basin to expand through additional low-emission newbuildings and long-term charters.

That said, the company remains committed to acquiring modern second-hand handysize, supramax and ultramax dry bulk carriers to renew its fleet.

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