Global shipper Maersk partnering to scale up Green Methanol supply in fleet

March 11, 2022
The firm expects to source 730,000 tons of green methanol annually for its green container vessels by the end of 2025

Staff and Wire Reports

Shipping container logistics firm A.P. Moller – Maersk has partnered CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel to increase the global production capacity of green methanol.

The firm intends to source at least 730,000 tons annually by the end of 2025. The production capacity it expects by 2025 will support its requirement of green methanol for the 12 green container vessels on order and more.

“To transition towards decarbonisation, we need a significant and timely acceleration in the production of green fuels,” Henriette Thygesen, CEO of Fleet & Strategic Brands at A.P. Moller – Maersk, explained. “Green methanol is the only market-ready and scalable available solution today for shipping. Production must be increased through collaboration across the ecosystem and around the world. That is why these partnerships mark an important milestone to get the transition to green energy underway.”

CIMC ENRIC will develop bio-methanol projects in China. In the first phase, it will be able to produce 50,000 tons annually from 2024 and after the second phase, it will be able to produce 200,000 tons per year. Agricultural residue will be used as feedstock for the projects. Maersk plans to offtake the entire volume produced.

European Energy will produce e-methanol for Maersk´s first green feeder vessel, which is expected to operate in 2023. Additional e-methanol projects are planned in Latin America and the U.S. that will be able to produce 200-300,000 tons of e-methanol annually from 2025-2026. Maersk plans to offtake the full volume.

European Energy Co-Founder and CEO Knud Erik Andersen said, “The shipping industry is a vital part in global efforts to curb carbon emissions, and together with Maersk we are now leading this crucial transition towards running ships 100 percent on renewable energy.”

Green Technology Bank will work with project developers on bio-methanol projects in China with a targeted annual production capacity of 50,000 tons from 2024 for the first project and 300,000 tons for the second project.

Orsted will develop an e-methanol project in the US for Maersk. This project will have an annual production capacity of 300,000 tons from 2025.

Proman intends to supply 100,000 to 150,000 tons of green methanol annually from its facility in North America. The project will begin operation in 2025. Non-recyclable forestry residues and municipal solid waste will be used to produce the methanol.

WasteFuel is developing a bio-methanol project in South America and Maersk intends to offtake the entire volume from this project. The project will produce more than 30,000 tons of bio-methanol per year from 2024.