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Ane Maersk arrives at the Port of Hamburg on maiden voyage.

The methanol-powered Ane Maersk arrives at the Port of Hamburg on her maiden voyage. Photo courtesy Maersk

Maersk Secures New Bio-Methanol Offtake Deal in China, Boosting Green Shipping Efforts

Mike Schuler
Total Views: 678
October 30, 2024

A.P. Moller – Maersk has entered into a long-term bio-methanol offtake agreement with China-based LONGi Green Energy Technology, aiming to reduce greenhouse gas emissions from Maersk’s expanding fleet of dual-fuel methanol containerships.

The deal with LONGi is a significant milestone in Maersk’s alternative fuel strategy. With this addition, Maersk’s combined methanol offtake agreements now cover more than 50% of its dual-fuel methanol fleet demand projected for 2027.

This progress is crucial for the company’s ambitious green shipping program, which includes 24 methanol-fueled vessels, seven of which have been delivered, ranging from 9,000 to 17,000 TEU capacity.

“Bio- and e-methanol continues to be the most promising alternative shipping fuels to scale up in this decade, and the agreement with LONGi serves as a testament to this,” said Rabab Raafat Boulos, Chief Operating Officer at A.P. Moller – Maersk. Boulos also highlighted the industry’s pressing need for regulatory support, urging the International Maritime Organization to “level the playing field by adopting a global green fuel standard and an ambitious pricing mechanism.”

The bio-methanol will be produced at a facility in Xu Chang, Central China, using residues such as straw and fruit tree cuttings. This production method aligns with Maersk’s sustainability requirements, promising at least 65% reduction in GHG emissions on a lifecycle basis compared to fossil fuels.

Emma Mazhari, Head of Energy Markets at A.P. Moller – Maersk, underscored the global significance of this partnership: “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.”

LONGi, a leader in photovoltaic manufacturing and solar power, brings green energy expertise to this partnership. This collaboration expands on the existing relationship, where LONGi has used Maersk’s shipping and logistics services.

Production is set to commence in 2026, with full capacity expected by the end of the decade.

As the shipping industry grapples with the challenges of decarbonization, the long-term agreement, extending into the next decade, represents a significant commitment to sustainable shipping practices and highlights the growing momentum for methanol as a key player in the maritime industry’s green transition.

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