China Shipyard Completes 1st Methanol Retrofit for Global Shipowner

China's shipbuilding industry achieved a major milestone today in green vessel conversion with the redelivery of the SEASPAN YANGTZE after its conversion to a methanol dual-fuel system.

COSCO Shipping Heavy Industry (Shanghai) retrofitted the vessel at Changxing Island in Shanghai, one of China's premier shipbuilding centers.

This project marks the shipyard's first engineering, procurement and construction (EPC) contract for methanol dual-fuel systems with Seaspan, the world's largest independent owner and operator of container ships, highlighting its expanding role in providing lower-carbon solutions to international shipowners.

The EPC model provides customized upgrades for large container ships that are already in use and allows for the combined installation of important dual-fuel conversion systems.

The retrofit reflects the shipping industry's increasing focus on alternative fuels as it works to cut emissions. By enabling the vessel to operate on methanol, a lower-carbon marine fuel, the conversion improves both energy efficiency and environmental performance.

After the upgrade, the SEASPAN YANGTZE's current ship energy efficiency existing ship index (EEXI) is about 55 percent lower than the initial Phase 0 requirement, which is much better than the rules demand and shows how much the ship can reduce carbon emissions.

As shipowners face mounting pressure to meet stricter environmental targets, the project offers a blueprint for large-scale methanol dual-fuel retrofits and the broader adoption of alternative marine fuels.

COSCO Shipping Heavy Industry (Shanghai) has built a track record in green vessel conversions in recent years. In 2024, it completed China's first conversion of a Moss-type LNG carrier into a floating storage and regasification unit (FSRU) and delivered the Maria Quiteria FPSO conversion project, which is expected to reduce carbon emissions by about 120,000 tons annually.

In 2025, the shipyard delivered the AGOGO FPSO, the world's first equipped with an offshore carbon capture and storage (CCS) system, with estimated annual emissions reductions of around 230,000 tons. It also completed the world's first dual-fuel retrofit of both the main and auxiliary engines on a 20,000-TEU container ship.