Maersk signs methanol contract

A.P. Moller-Maersk and the Chinese developer Goldwind have signed a long-term agreement for the purchase of environmentally friendly methanol.

The methanol offtake agreement between Danish shipping group Maersk and Goldwind, which claims to be the world’s leading clean energy company, is the first large-scale green methanol offtake agreement in the global shipping industry and extends into the next decade.

According to Maersk, the commercially viable long-term offtake agreement covers annual volumes of 500,000 tons to enable low-carbon operations for the first twelve large methanol-capable Maersk ships – which have already been ordered. The first volumes are expected in 2026. Background: A.P. Moller – Maersk will take delivery of its first large methanol-capable ocean-going vessel (16,000 TEU) in the first quarter of 2024 and is working with a broad range of global partners on solutions for the entire series of ships to be delivered between 2024 and 2025.

Maersk believes green methanol is currently the most viable low-emission solution

“We are encouraged by the agreement as the scale and price confirm our view that green methanol is currently the most viable low-emission solution for maritime shipping that can make a significant impact in this decade,” said Rabab Raafat Boulos, Chief Infrastructure Officer at A.P. Moller – Maersk. “The agreement is a testament to the momentum and tremendous efforts we are seeing from ambitious developers driving projects in all regions. However, we still have a long way to go to create a global market for green fuels that will enable the decarbonization of global shipping.”

Green methanol produced with wind energy in China

The volumes consist of a blend of green biomethanol and e-methanol, all produced using wind energy at a new production plant in Hinggan League in north-eastern China, around 1,000 km north-east of Beijing. Production is scheduled to start in 2026. Following the signing of the offtake agreement, Goldwind expects to make a final investment decision for the plant by the end of the year.

A.P. Moller – Maersk has set itself the target of zero greenhouse gas emissions across its operations by 2040. The completion of the transaction is expected to facilitate Maersk’s first steps towards the net-zero emissions target and support expectations for a competitive market for green methanol by 2030. The agreed volumes can cover more than half of the methanol capacity already contracted annually.

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Copyright: © A.P. Moller - Maersk

Caption: Maersk will sein erstes großes methanolfähiges Hochseeschiff (16.000 TEU) im ersten Quartal 2024 abnehmen