MAERSK INKS LONG TERM BIO-METHANOL SUPPLY DEAL
Maersk has been a leader in the move to use green methanol to fuel its ships reducing carbon emissions by operating the world’s first methanol dual-fuel container ships, however, securing supplies of green methanol has not proved to be easy.
With the latest agreement with LONGi the Copenhagen-headquartered shipping company said it was “making progress in securing enough methanol for its owned dual-fuel methanol fleet of which seven vessels are already in operation”. Maersk said its combined methanol offtake agreements now supply enough fuel for 50% of fuel it will need for its fleet by 2027.
LONGi will deliver bio-methanol from its plant Xu Chang, Henan province, China, that is produced from straw and fruit tree cuttings which Maersk says will meet its methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels.
With the signing of agreement Maersk used the opportunity to repeat its call for the International Maritime Organization (IMO) to adopt a pricing mechanism to incentivise green fuels.
. Global shipping’s main net-zero challenge is the price gap between fossil fuels and the alternatives with lower greenhouse gas emissions. We continue to strongly urge the International Maritime Organization’s member states to level the playing field by adopting a global green fuel standard and an ambitious pricing mechanism which the industry urgently needs,” says Rabab Raafat Boulos, Chief Operating Officer, AP Moller – Maersk.
The IMO is currently discussing what are described as economic measures or a GHG levy with an aim to reach agreement at the Marine Environment Protection Committee meeting (MEPC 83) in April 2025 as it sets out a framework to reduce greenhouse gas emissions from shipping.
Despite Maersk’s strong backing to be “all the way to zero” by using methanol as fuel the company announced earlier this year that its newbuilding plans would also include the use of LNG, a fossil fuel. LNG offers immediate reductions in GHG emissions and potential pathway to zero emissions through the of bio-LNG and e-methane. Unlike green methanol LNG as a fuel is readily available in the market with infrastructure having been built up over the last 15 years.
Meanwhile Maersk has more potential green methanol deals with projects that are in the pipeline.
“While we believe that the future of global logistics will see several pathways to net-zero, this agreement underscores the continued momentum for methanol projects that are pursued by ambitious developers across markets,” said Emma Mazhari, Head of Energy Markets at AP Moller – Maersk.
“China continues to play a pioneering role, and it is encouraging to also see strong market developments in other geographies as well. One example is the US where we are engaging closely with several promising projects.”
