Maersk has secured a long-term agreement for the supply of bio-methanol
6 days ago
Maersk has secured a long-term agreement for the supply of bio-methanol
AP Moller – Maersk is advancing its efforts to secure sustainable fuel for its future fleet by signing a long-term bio-methanol supply agreement with Chinese producer LONGi Green Energy Technology. As a frontrunner in the adoption of green methanol for shipping, Maersk has already made strides by operating the world’s first methanol dual-fuel container ships to reduce carbon emissions. However, sourcing sufficient green methanol has been a challenge.
With this latest partnership, Maersk is taking significant steps toward meeting the fuel needs of its growing fleet of dual-fuel methanol vessels, seven of which are already in service. The company reported that its combined methanol offtake agreements now cover 50% of the fuel it will require for its fleet by 2027. The bio-methanol supplied by LONGi will be produced at its facility in Xu Chang, Henan Province, China, from sustainable sources like straw and fruit tree cuttings, which Maersk confirms will meet its sustainability criteria, including a 65% reduction in greenhouse gas emissions compared to traditional fossil fuels.
Maersk also reiterated its call for the International Maritime Organization (IMO) to implement a global pricing mechanism that would encourage the use of green fuels. Rabab Raafat Boulos, Chief Operating Officer of AP Moller - Maersk, emphasized the need for a level playing field to close the price gap between fossil fuels and green alternatives.
The IMO is currently discussing potential economic measures, including a GHG levy, with an expected decision at the Marine Environment Protection Committee meeting (MEPC 83) in April 2025. This will help shape a framework for reducing greenhouse gas emissions in shipping.
In addition to methanol, Maersk’s newbuilding plans include LNG-powered vessels, offering an immediate reduction in GHG emissions, with the potential for further emission reductions through bio-LNG and e-methane. LNG is more readily available with established infrastructure, providing a viable transition option for the company.
Looking ahead, Maersk is continuing to explore further green methanol agreements with projects in the pipeline. Emma Mazhari, Head of Energy Markets at AP Moller - Maersk, noted that while the company believes multiple pathways to net-zero will emerge in global logistics, the long-term commitment to methanol is gaining traction across markets, with China playing a pioneering role and promising developments also occurring in regions like the US.
Source: Seatrade Maritime