German engine manufacturer, MAN Energy Solutions (MAN ES), and China’s COSCO Shipping Heavy Industries (CHI) have signed a framework agreement extending their strategic cooperation on decarbonisation retrofit projects. The partnership, announced on 10 April, aims to accelerate the conversion of conventionally fuelled ships to operate on lower-carbon alternatives, such as methanol, ammonia, and methane – fuels increasingly produced through Power-to-X technologies.
This expanded collaboration builds upon previous joint projects between the two companies, including the 2023 retrofit of four containerships with dual-fuel methanol engines supplied by MAN ES. The new agreement formalises an integrated approach that combines MAN ES’s engine technology and digital energy efficiency systems with CHI’s engineering, procurement, and construction (EPC) capabilities across its five ship repair yards, which collectively have the capacity to modify up to 1,500 vessels annually.
According to MAN ES, approximately 4,500 vessels currently in operation are technically viable for conversion from traditional bunker fuels to lower-emission alternatives. In light of tightening emissions regulations, escalating fuel costs, and increasing pressure from cargo owners and financial institutions to demonstrate progress in decarbonising their operations, retrofitting presents a commercially viable and timely pathway for emissions reduction.
Michael Petersen, Senior Vice President at MAN Energy Solutions, commented on the agreement: ‘This frame agreement facilitates MAN ES’s partnership with CHI, one of the largest repair-yard groups in the world. The agreement means that we can join forces on many future projects to ensure the decarbonisation of the existing commercial fleet worldwide. We look forward to working with CHI to deliver new decarbonisation solutions to the maritime industry.’
Guo Zhiqiang, Deputy General Manager of Commercial Headquarters at CHI, said: ‘I am pleased to announce that CHI and MAN ES, having served shared clients in their respective domains, are now forging a closer collaboration in vessel decarbonisation. Starting today, our integrated one-stop solutions will inject fresh impetus into the green transition of the global maritime industry.’
While the order book for zero-emission new builds continues to grow, the delivery schedules and capital expenditures associated with new tonnage present significant challenges. In contrast, retrofitting allows shipowners to extend the operational lifespan of existing assets while substantially enhancing their environmental performance.
This collaboration offers a pathway for CHI to further commercialise its shipyard capacity through high-value retrofit projects. For MAN ES, it strengthens the engine manufacturer’s position in the rapidly expanding Asian retrofit market and reinforces the demand for its dual-fuel engine portfolio.
