Global marine transportation company Waterfront Shipping, a wholly owned subsidiary of Methanex, has announced plans to invest in four more ocean-going vessels powered by methanol. The investment will be done in collaboration with Swedish ship management company Marinvest/Skagerack Invest (Marinvest), Japanese ship operators IINO Kaiun Kaisha and NYK Group, and trading firm Mitsui & Co.

The order follows the delivery in 2016 of seven methanol vessels, which Waterfront said have been operating safely and reliably across the globe for more than a year. These were built with first-of-a-kind engines from Germany’s MAN, which can run on methanol, fuel oil, marine diesel oil or gas oil.

“With seven engines already in operation and proven in the field, this new order confirms the ME-LGI concept as a mature technology. Since this dual-fuel engine entered the market in 2016, its price has dropped considerably, which makes it an even more attractive propulsion option,” said René Sejer Laursen, promotion manager at MAN Diesel & Turbo.

The new vessels, each with a deadweight tonnage (dwt) of 49,000, will be constructed at the Hyundai Mipo dockyard in South Korea, where several of the first-generation methanol-fueled vessels were built. Delivery is scheduled for 2019.

Waterfront said it will charter the four ships to replace older vessels and support growing demand for methanol around the world. Two of the Waterfront vessels will be owned in a joint venture with Marinvest, one will be owned by NYK, and the fourth will be owned in a joint venture between IINO and Mitsui. Paul Hexter, president of Waterfront Shipping, said the investment will see 40% of its fleet powered by methanol in the coming year.

Biodegradable and clean-burning, methanol is a promising alternative marine fuel that can meet International Maritime Organization (IMO) regulations to cut emissions of sulfur oxide (SOx) and nitrogen oxides (NOx). Methanex said that methanol as a marine fuel can cut SOx emissions by around 99%, NOx by 60% and particulate matter by 95%.