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Neste and Terntank signs agreement for methanol-fuelled tankers

28 Mar 2023

Finnish oil refining and marketing company Neste has signed an agreement with tanker operator Terntank for time chartering two new methanol-powered product tankers, according to Terntank on Monday (27 March).

The tankers are designed with foldable suction sails and dual-fuel engine enabling the use of e-methanol as fuel, which is produced with Power-to-X technology using captured carbon and renewable energy. 

The tankers are tailored to transport a wide variety of liquid cargoes including renewable raw materials, such as waste and residue oils and fats, to Neste’s refineries. At the refineries, products such as renewable diesel and sustainable aviation fuel (SAF) will be loaded for transport.

“Together with our partners, we are scaling up our renewable and circular solutions production capacity. Our partnership with Terntank supports our commitment to sustainability, particularly our target towards reducing emissions across our value chain. With these vessels we continue to reduce the emissions and environmental impacts of transportation. We are delighted to partner with Terntank,” Lauri Helin, Vice President Logistics and Operations, Oil Products at Neste, said. 

“It is great to have Neste back again as a time charter partner after 10 years. We are happy to be able to provide them with the state-of-art product tankers and innovative technologies to minimiSe the environmental impact of shipping and work together towards carbon neutrality targets,” Tryggve Möller, owner, Terntank, said. 

The vessel’s design and onboard emission reduction technologies will further reduce Neste’s environmental impact and emissions of shipping. 

These product tankers are forerunners when it comes to reaching the climate targets set by the International Maritime Organization.

These new tankers, each able to carry altogether 15,000 tonnes of chemicals, were ordered by Terntank, designed by Kongsberg, and will be built by CMHI Jinling Shipyard in Yangzhou, China. 

The ships are due for delivery during the second half of 2025 and beginning of 2026.

Both new tankers are ice-strengthened and equipped with Terntank’s Hybrid Solution® electric power supply system, battery pack and on-shore power connection. The ships can operate on new low-emission fuels such as e-methanol to meet net-zero emission goals. Terntank has extensive experience in operating this type of vessels with solutions that minimise pollution near populated areas such as ports.


Photo credit: Terntank
Published: 28 March, 2023

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