Singaporean shipowner Eastern Pacific Shipping (EPS) has decided to convert all 14 ammonia dual-fuel bulk carriers ordered from Qingdao Beihai Shipbuilding to LNG dual-fuel power.
According to foreign media reports, EPS confirmed that the 14 210,000 dwt Newcastlemax bulk carriers under construction in China will adopt LNG dual-fuel propulsion systems, instead of the originally planned ammonia dual-fuel engines. The company described this decision as a tactical adjustment, reflecting the technological, commercial, and regulatory challenges facing the energy transition in the shipping industry.
These new EPS vessels were originally planned to be equipped with large second-generation ammonia-fueled engines. However, issues such as the technology not being mature yet, coupled with regulatory frameworks, bunkering infrastructure, and charterer cost concerns, have prevented their use as planned.
Despite this, EPS remains committed to deploying ammonia fuel systems for a total of 4 very large ammonia carriers (VLACs) currently under construction at Jiangnan Shipyard and South Korea’s HD Hyundai Heavy Industries. These new vessels will be equipped with Everllence’s first-generation 60-bore ammonia-fueled dual-fuel engines and are expected to start delivery from 2027. Additionally, the company is proceeding with newbuilding projects for ammonia-fueled container ships and car carriers.
EPS CEO Cyril Ducau stated: “Our ultimate goal is to be ready when the market is ready. After extensive research by our team and partners on ammonia-fueled ships, we believe we should focus more effort on the VLAC project, allowing shipyards and engine manufacturers to refine the solution before large-scale deployment in other shipping segments.”
He pointed out that the infrastructure, supply, and regulatory system for ammonia fuel are still under construction, which is a natural phase inevitably experienced when promoting new fuels. “Therefore, we are adopting a step-by-step strategy, accumulating experience through Memorandums of Understanding, industry cooperation, and project development.”
It is understood that in September 2023, EPS signed a building contract with Beihai Shipbuilding for 3+3 210,000-ton Ammonia DF/DF Ready bulk carriers, marking the beginning of their collaboration. Starting from this, EPS subsequently ordered a total of 14 210,000-ton ammonia dual-fuel bulk carriers at Beihai Shipbuilding.
These were the world’s first dual-fuel ammonia-powered bulk carriers. Although Beihai Shipbuilding did not disclose the price of the new ships, foreign media reported that each ship costs close to $80 million, with the total for all 14 vessels reaching $1.12 billion (approximately RMB 7.974 billion). The first ship is expected to be delivered in mid-2026.
This ship type was jointly developed by Beihai Shipbuilding and China Shipbuilding Heavy Industry Group Ship Design & Research Centre Co., Ltd. (CSDC). It has a total length of 300.00 meters, a breadth of 50.00 meters, a depth of 25.20 meters, and a scantling draft of 18.40 meters, with a speed of 14.0 knots. It can meet the requirements of the Energy Efficiency Design Index (EEDI) Phase III. Simultaneously, the vessel satisfies the prerequisites for ammonia fuel, with plans to later configure an ammonia-fueled main engine and two 3,000 cubic meter Type C ammonia fuel tanks, ensuring the potential for “zero-carbon” operation throughout the ship’s entire lifecycle using ammonia fuel in the future.
According to the plan, these new ships were intended to use ammonia dual-fuel main engines supplied by MAN Energy Solutions (now renamed Everllence). When EPS signed the first order in 2023, this engine was still under development; at that time, MAN stated it would deliver the first two-stroke ammonia-fueled engines for the newbuilds by the end of 2024. However, the engine not being ready prompted EPS to convert all 14 ships to LNG dual-fuel power.
It is understood that EPS is one of the world’s largest independent shipowners, with over 60 years of excellence in the shipping industry. Headquartered in Singapore, it employs 6,000 seafarers and over 450 shore-based staff, managing a diversified fleet of more than 270 vessels including bulk carriers, container ships, car carriers, tankers, chemical tankers, LPG carriers, and LNG carriers, with a total deadweight tonnage of 28 million tons and an average vessel age of under 10 years. Among these, there are over 80 dual-fuel vessels.
Since 2021, EPS has been active in the newbuilding market, ordering over 140 new ships at shipyards in China, Japan, and South Korea. Clarksons data shows that EPS currently has a total of 108 newbuildings on order, covering ship types such as container ships, car carriers, liquefied gas carriers, and tankers. After all current newbuildings are delivered by 2029, EPS’s fleet size is expected to exceed 300 vessels.
It is worth noting that while EPS changed its fuel choice, another shipowner that ordered ammonia-fueled bulk carriers from Beihai Shipbuilding – Belgium’s CMB.Tech – has decided to stick with ammonia fuel. CMB.Tech currently has 10 ammonia-fueled Newcastlemax bulk carriers on order at Beihai Shipbuilding, expected to be delivered between 2026 and 2027.
CMB.Tech’s new vessels will be equipped with ammonia dual-fuel engines designed by WinGD. WinGD CEO Dominik Schneiter stated that the company’s first large-bore X72DF-A engine is ready for testing in Qingdao in the fourth quarter of this year, and will be delivered to the shipyard for installation after testing is completed.
According to a recent white paper released by DNV, ammonia fuel has moved from the conceptual stage to the early implementation stage in just five years, gradually becoming a low-carbon greenhouse gas alternative fuel for deep-sea shipping. Since 2020, ammonia as a marine fuel has made significant progress in regulations, technology, and infrastructure. The safety framework has evolved from risk-based approvals to the International Maritime Organization’s interim guidelines and annually updated class rules. Technological maturity continues to improve – there are currently 39 ammonia-powered vessel orders, commercial engines are available, and the first fuel shipboard demonstration has been completed. Although current production of blue and green ammonia is low, identified plans are set to increase annual production to 14 million tons by 2030. Bunkering infrastructure is also gradually emerging after trials at key global ports, including Singapore and Rotterdam.
