A.P. Moller - Maersk engages partners to scale green methanol production by 2025
"To transition towards decarbonisation, we need a significant and timely acceleration in the production of green fuels."
Photo: A.P. Moller-Maersk.
To boost the global production capacity of green methanol, A.P. Moller - Maersk (Maersk) enters strategic partnerships with six leading companies with the intent of sourcing at least 730,000 tonnes/year by end of 2025 (see breakdown table here). The six companies are CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel.
With this production capacity, by the end of 2025 at the latest, Maersk will reach well beyond the green methanol needed for the first 12 green container vessels currently on order. Once fully developed these projects of both bio- and e-methanol will enable Maersk to source green methanol at scale across several regions around the globe
"To transition towards decarbonisation, we need a significant and timely acceleration in the production of green fuels. 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,” says Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands, A.P. Moller – Maersk.
(see breakdown table below).
Collaboration and investments in innovative projects are the most important ways to reach a net zero fuel value chain. Maersk will keep on working with a wide-ranging group of leading companies on these and further projects to accelerate the urgent transition to green energy.
Maersk´s green methanol sourcing partners
CIMC ENRIC, a subsidiary of CIMC (China)
CIMC ENRIC will develop bio-methanol projects for Maersk in China. The phase one project will have a capacity to produce 50,000 tonnes/year of green methanol, starting in 2024. The second phase of the project will have a capacity produce of 200,000 tonnes/year with start date to be determined. The feedstock for the bio-methanol will be agricultural residues. Maersk intends to offtake the full volume produced.
European Energy (Denmark)
European Energy will produce e-methanol for Maersk´s first green feeder vessel, which is expected to be on the water by 2023. They will also develop e-methanol projects in Latin America and the United States that will have a capacity to produce up to 200-300,000 tonnes annually of e-methanol starting in 2025/2026. Maersk intends to offtake the full volume produced on long-term contracts to help its customers realize their own ambitious emission targets.
Green Technology Bank (China)
GTB will facilitate development of bio-methanol projects in China together with project developers to be identified. The first project is planned to have a capacity to produce 50,000 tonnes/year starting from 2024, and the second project is planned to have a capacity to produce 300,000 tonnes/year at a start date to be determined.
Orsted (Denmark)
Orsted will develop an e-methanol project in the US that will have a capacity to produce 300,000 tonnes/year starting 2025. Maersk intends to offtake the full volume produced.
Proman (Switzerland)
Proman will aim to supply Maersk with 100,000 – 150,000 tonnes/year of green methanol from its in-development facility in North America. The project will be built by Proman with target start of operations in 2025, producing bio-methanol from non-recyclable forestry residues and municipal solid waste.
WasteFuel (US)
WasteFuel is developing a bio-methanol project in South America that will produce over 30,000 tons per year starting in 2024. Maersk intends to offtake the full volume produced. WasteFuel transforms unrecovered waste into sustainable fuels using proven technologies. Maersk Growth invested in the company in 2021.
