AP Møller-Mærsk has made a series of moves in recent months to ensure a supply of ’green’ methanol after committing to build up to 12 carbon-neutral methanol-fuelled container vessels
Denmark-headquartered AP Møller-Mærsk has agreed a letter of intent with multinational Danish energy company Ørsted to develop a Power-to-X-facility on the US Gulf coast to fuel Mærsk’s newly ordered fleet of 12 methanol-powered vessels alongside a record-breaking offtake agreement for green fuels in the maritime industry.
According to the agreement, Ørsted will develop a 675-MW Power-to-X facility on the US Gulf coast that will produce approximately 300,000 tonnes of e-methanol (or green methanol derived from clean fuel sources) per year, which Mærsk will offtake for its methanol-powered vessels. The facility will be powered by approximately 1.2 GW of renewable energy from new onshore wind and solar PV farms. The biogenic carbon needed to produce e-methanol will be extracted through carbon capture at one or more large point sources.
The project is targeted to be commissioned in H2 2025, and a final investment decision could be made in late 2023. The 300,000 tonnes of e-methanol would be the largest potential offtake agreement for green fuels in the maritime industry yet announced, according to a statement from the two companies.
Mærsk has also signed a green methanol supply agreement with Swiss-headquartered Proman AG, one of the world’s largest producers of methanol.
"As part of today’s agreement, Proman will aim to supply Mærsk with 100,000-150,000 tonnes per year of green methanol from its new 200,000-tonne per year methanol facility in development 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," a Proman statement said.
Proman said the agreement also offered scope for further collaboration between the companies, saying it is evaluating multiple bio-methanol and e-methanol projects in South America, Europe and the United Kingdom, which is part of a longer-term green methanol supply strategy for Mærsk and for the shipping industry.
"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,” AP Møller-Mærsk chief executive of fleet and strategic brands Henriette Hallberg Thygesen said.
In 2021, Mærsk placed a newbuild order with Hyundai Heavy Industries for a series of up to a dozen 16,000-TEU container vessels.
Eight of the vessels are part of the initial, firm order, with the first of the vessels set for delivery in Q1 2024. An option for four additional vessels could be confirmed for 2025, the company said.
Mærsk said the dual-fuel vessels would replace older vessels, generating annual CO2 emissions savings of around a million tonnes for the company.
The carbon neutrality of the vessels, tied to the availabilty of carbon-neutral methanol, is not guaranteed, and Mærsk said sourcing the fuel would be "challenging," initially.
"Mærsk will operate the vessels on carbon-neutral e-methanol or sustainable bio-methanol as soon as possible. Sourcing an adequate amount of carbon-neutral methanol from day one in service will be challenging, as it requires a significant production ramp up of proper carbon-neutral methanol production, for which Mærsk continues to engage in partnerships and collaborations with relevant players," the company said.
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