Maersk Acquires 100,000 Tons of Green Methanol in Support of Fleet Decarbonization Objectives

The container logistics integrator A.P. Moller – Maersk announced a strategic cooperation with U.S.-based project developer Carbon Sink LLC to construct green methanol production facilities in the United States, beginning with a 100,000-tonne-per-year facility.

As part of the company's fleet decarbonization initiatives, Maersk plans to purchase the entire volume of green methanol generated, with options for the production of succeeding facilities in other places.

This is Maersk's eighth green-methanol arrangement, after the recent announcement of multiple agreements to supply at least 730,000 tonnes of green methanol annually by 2025's end.

Maersk unveiled a series of carbon reduction goals earlier this year, including achieving net zero gas emissions in all of its businesses by 2040, a 50% reduction in emissions per transported container in its ocean fleet, and a 70% reduction in absolute emissions from fully controlled terminals by 2030. Additionally, the corporation has instituted a policy of only ordering new vessels that can operate on green fuels.

The agreements follow a series of orders by Maersk for clean-fuel-powered container ships over the past several months, including an order for the world's first carbon-neutral methanol-powered container ship in July, an order for eight large methanol-powered ocean-going container vessels in September, and an order for six large ships in November. Maersk has ordered 19 green container ships that are capable of running on green methanol.

Berit Hinnemann, A.P. Moller – Maersk's Head of Green Fuels Sourcing, stated:

"Securing large quantities of green fuels in this decade is crucial to our fleet decarbonization efforts. We have set a net-zero emissions goal for our entire business by 2040. However, to remain consistent with the Paris Agreement, we have also established 2030 goals to achieve meaningful progress in this decade."

Carbon Sink stated that it will employ a commercially available technology to make green methanol by mixing green hydrogen from water electrolysis with additional renewable electricity and biogenic CO2. The CO2 for the first project will be gathered from the bioethanol facility of Red River Energy and recycled into green methanol.

It is estimated that the project will begin operations in 2027.

The CEO of Carbon Sink, Steve Meyer, stated:

"We are thrilled to be collaborating with Maersk to help their efforts to decarbonize the shipping industry. Carbon Sink contributes a great amount of expertise, experience, and partnerships to assist them in achieving their ambitious business objectives. Our multi-project development approach paves the road for the provision of substantial volumes of green methanol to enable Maersk's expanding dual-fuel ship fleet fulfil demand."