Germany | September 25, 2025 – In a landmark development for low-emission shipping, Qingdao Beihai Shipbuilding Heavy Industry Co. has begun construction on ten 325,000 DWT Very Large Ore Carriers (VLOCs). Each vessel will be powered by an Everllence B&W 7G80ME-LGIM Mk10.5 methanol dual-fuel engine, supplied with a proprietary EGRTC system for emissions compliance. The newbuilds are being delivered to Shandong Shipping Corporation and Bohai Ocean Shipping Co. Ltd, two leading Chinese shipowners, and will enter long-term charter service for Vale S.A., the Brazilian mining giant, upon completion.
This new series of VLOCs represents a significant leap forward in the maritime sector’s transition to greener fuel alternatives—specifically, methanol, which is emerging as a pivotal player in global shipping’s decarbonisation roadmap.
A Technological Step Forward: The ME-LGIM Engine
At the heart of these new vessels is the Everllence B&W 7G80ME-LGIM (-Liquid Gas Injection Methanol) Mk10.5 engine, a state-of-the-art two-stroke engine capable of operating on methanol—a fuel that can be sourced renewably and offers a clear pathway to carbon-neutral operations.
Each of the engines will be fitted with Everllence’s proprietary EGRTC (Exhaust Gas Recirculation – Turbocharger Cut-out) system, ensuring full compliance with IMO Tier III NOx emissions standards. This innovative emissions-reduction technology not only enhances environmental performance but also offers operational flexibility across emission-controlled areas.
Vale S.A. – Backing the Future of Clean Shipping
The VLOCs will primarily operate on the Brazil–China iron ore trade route, a high-volume corridor that carries some of the world’s largest seaborne dry bulk cargoes. Their charter to Vale—one of the largest iron ore producers globally—highlights a major charterer’s willingness to commit to next-generation, eco-efficient tonnage.
This move aligns with Vale’s broader sustainability goals and reflects a growing trend among cargo owners to decarbonise supply chains, starting at sea.
Methanol as a Mainstay
Bjarne Foldager, Head of Two-Stroke Business at Everllence, remarked “Over the years we have experienced a wave of ME-LGIM orders and it is encouraging to see prominent players demonstrating their decarbonisation credentials in taking these vessels on charter. In a multi-fuel future, we expect methanol to figure prominently across all vessel segments, and these newbuildings will be capable of trading carbon-neutrally when powered by green methanol.”
Foldager’s comments echo a growing consensus that methanol is no longer an experimental solution, but a commercially viable and scalable alternative to conventional marine fuels.
Christian Ludwig, Head of Sales and Promotion at Everllence, further underlined the ME-LGIM engine’s success “With more than 230 orders and over 600,000 running hours accumulated whilst running on methanol, the ME-LGIM engine has proven itself and become the de facto industry standard for the methanol propulsion of large merchant-marine vessels. As the engines are readily available and methanol dual-fuel types have a lower capital outlay compared to other, alternative fuel-propulsion solutions for ships, we fully expect to add even more orders within the bulk-carrier segment in the near future.”
Why Methanol?
Methanol is increasingly seen as one of the most promising alternative fuels for marine decarbonisation due to several key advantages:
- Compatibility with existing infrastructure: Methanol can be handled using existing bunkering systems with minimal adaptation.
- Lower CAPEX vs. LNG or ammonia: Dual-fuel methanol engines offer simpler design and installation compared to other zero-carbon fuel alternatives.
- Scalability: Methanol is already being produced at scale, and green methanol projects are accelerating globally.
- Regulatory readiness: Methanol propulsion aligns well with IMO 2030 and 2050 decarbonisation targets.
Bulk Shipping Charts a New Course
This order of ten methanol-fuelled VLOCs is a powerful signal that decarbonisation is no longer a future ambition—but a present-day reality. As global trade continues to demand cleaner logistics, industry leaders from shipbuilders to charterers are positioning themselves to meet both regulatory requirements and stakeholder expectations.
By investing in methanol propulsion and Tier III emissions technology, Qingdao Beihai Shipyard, Shandong Shipping, Bohai Ocean Shipping, and Vale are not just building ships—they are helping build the future of sustainable seaborne trade.
About Everllence
Everllence (formerly MAN Energy Solutions) is a global leader in decarbonization and propulsion systems for shipping, energy, and industry. Headquartered in Germany, the company’s portfolio spans advanced engine technology, climate-neutral fuel retrofits, carbon capture, hydrogen systems, and industrial heat pumps. Through its subsidiary Quest One, Everllence also supports green hydrogen production at scale. With 15,000 employees across more than 140 sites worldwide, Everllence’s service arm, Everllence PrimeServ, provides global after-sales support.
Source Everllence