ESL Shipping Bets Big on Methanol with €115M Green Shipping Push
The Future of Bulk Carriers Just Got a Nordic Makeover
In a move that signals the accelerating green transition in maritime transport, Finland’s ESL Shipping has locked down €115 million in financing for four cutting-edge methanol-powered bulk carriers. The deal—a patchwork of long-term loans from Scandinavian institutions—highlights how traditional shipping finance is adapting to the industry’s decarbonization race.
“This isn’t just about compliance—it’s about building ships that will remain competitive for decades,” says an industry analyst familiar with the terms.
The centerpiece is a €70 million, 15-year loan from Svenska Skeppshypotek, covering nearly 40% of the €186 million total investment for the vessels ordered last October. These 17,000 deadweight ton (dwt) Handysize ships pack a suite of sustainability features that read like a maritime engineer’s wishlist: 1MWh battery packs for peak shaving, ice-strengthened hulls (1A class), and dual-fuel engines capable of running entirely on green methanol. Notably, they’ll bypass traditional marine diesel entirely when operating in emission-controlled areas.
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While the methanol capability grabs headlines, the vessels’ auxiliary systems reveal how deeply green thinking permeates the design. Each ship includes a shore power connection to eliminate port emissions, a sewage treatment unit that exceeds IMO standards, and a cargo hold wash water recovery system that recycles 90% of cleaning runoff. Even the ballast water gets filtered through a treatment system (BWTS) to prevent invasive species transfer.
China Merchants Jinling Shipyard will construct the quartet, with deliveries staggered between Q3 2027 and early 2028. The timeline suggests ESL is banking on methanol infrastructure maturing rapidly—currently, only 23 ports worldwide offer bunkering, though that number is projected to triple by 2027.
“The Nordic Investment Bank’s parallel €45 million, 10-year loan proves this isn’t niche financing—it’s strategic,” notes a Stockholm-based shipping financier.
Both lenders explicitly tied their commitments to ESL’s sustainability roadmap, which includes a 50% CO2 reduction per ton-mile by 2030. With these ships consuming 15-20% less fuel than conventional designs while eliminating sulfur and particulate emissions, they represent a tangible step toward that goal. As bulk carriers account for 21% of global shipping emissions, such investments could move the needle industry-wide—provided the methanol supply chain keeps pace.
