Denmark based shipping and logistics giant AP Moller-Maersk has contracted 6 international companies to source 730,000 tons of green methanol annually by the end of 2025 which will be more than what it needs for the 1st 12 green container vessels.
This green fuel is planned to be sourced from bio-methanol, which is produced from feedstocks, and e-methanol that's produced using renewable sources, including green hydrogen. While China's CIMIC ENRIC, Green Technology Bank (GTB) and US based WasteFuel will supply bio-methanol to the company, Switzerland's Proman will provide both bio and e-methanol worth 100,000 to 150,000 tons annually to Maersk.
Denmark based renewable energy company European Energy will develop e-methanol projects in Latin America and the US with an annual production capacity of 200,000 to 300,000 MT starting in 2025/2026. Maersk said it intends to offtake the full volume produced on long-term contracts.
Recently, European Energy announced solar power from its 300 MW Denmark based project will power a 50 MW electrolyzer plant green hydrogen from which will supply e-methanol for Maersk's 1st green feeder vessel (see Green Hydrogen For E-Methanol Production).
Another Danish renewable energy producer Orsted will develop an e-methanol project in the US with capacity to produce 300,000 tons annually from 2025, all of which will be consumed by Maersk as the offtaker. Orsted Deputy CEO and CCO Martin Neubert said the maritime industry faces a chicken-and-egg challenge where the supply and demand of green fuels will have to evolve in parallel to fast ensure a sustainable development of zero emissions fuels.
"Green methanol is the only market-ready and scalable available solution today for shipping," said CEO of Fleet & Strategic Brands, AP Moller-Maersk, Henriette Hallberg Thygesen. "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."