A.P. Moller – Maersk has entered into a long-term offtake agreement with LONGi Green Energy Technology for bio-methanol that will be used by its growing fleet of dual-fuel container ships.
LONGi will be providing bio-methanol produced at a facility in Xu Chang, Central China, from residues such as straw and fruit tree cuttings. It will meet Maersk’s methanol sustainability requirements, including at least a 65% reduction in GHG emissions on a lifecycle basis compared to fossil fuels.
In a statement issued today (30 October), Rabab Raafat Boulos, Maersk’s Chief Operating Officer, said: ‘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, Maersk's Head of Energy Markets, added: ‘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.’
As previously reported, Maersk has made a major commitment to introducing methanol-fuelled ships to its fleet. A series of 18 large dual-fuel methanol vessels capable are scheduled for delivery in 2024 and 2025. The sixth in the series, the Alexandra Maersk, was officially unveiled at ceremony in Felixstowe earlier this month.
Alongside the dual-fuel methanol vessels, Maersk announced in August that it will also be adding new LNG-fuelled ships to its fleet – a move which was seen as something of a volte face in the industry as the company had previously taken a rather sceptical stance on LNG. But Ahmed Hassan, Maersk’s Head of Asset Strategy & Strategic Partnerships, said the company wanted to explore both the LNG and methanol pathways because: ‘By diversifying our fleet and fuel options, we gain the flexibility, knowledge, and experience to cater to a future with multiple fuel paths.’
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