Maersk inks long-term bio-methanol offtake deal with LONGi

Danish shipping giant A.P. Moller-Maersk has entered a long-term bio-methanol offtake agreement with China’s photovoltaic (PV) manufacturer LONGi Green Energy Technology.

According to Maersk, the deal will contribute to lowering greenhouse gas (GHG) emissions from Maersk’s growing fleet of dual-fuel methanol container vessels. The company’s combined methanol offtake agreements are now said to meet more than 50% of the dual-fuel methanol fleet demand in 2027.

As disclosed, the bio-methanol, produced from residues (straw and fruit tree cuttings), will come from a facility in Xu Chang, Central China, and will meet Maersk’s methanol sustainability requirements, including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels. The first volumes are anticipated in 2026, with full production expected at the end of the decade.

Rabab Raafat Boulos, Chief Operating Officer at A.P. Moller-Maersk, stated: “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. Global shipping’s main net-zero challenge is the price gap between fossil fuels and the alternatives with lower greenhouse gas emissions. We continue to strongly urge the International Maritime Organization’s member states to level the playing field by adopting a global green fuel standard and an ambitious pricing mechanism which the industry urgently needs.”

Emma Mazhari, Head of Energy Markets at A.P. Moller-Maersk, commented: “While we believe that the future of global logistics will see several pathways to net-zero, this agreement underscores the continued momentum for methanol projects that are pursued by ambitious developers across markets. 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.”

In other news, A.P. Moller Maersk partnered with Danone, a French multinational food-products corporation, to reduce logistics GHG emissions by using Maersk’s decarbonization service.

Reportedly, Danone will integrate Maersk ECO Delivery Ocean, a product based on reduced GHG emission fuels like bio-diesel or bio-methanol, into its supply chain. These fuels are then used on vessels across the Maersk’s fleet.

As per Maersk, with the applied version of ECO Delivery Ocean by Danone, GHG emissions are expected to be reduced by more than 40% compared to conventional fossil fuels.