A.P. Moller – Maersk has announced its entry into a long term bio-methanol offtake agreement with LONGi Green Energy Technology, a Chinese-based photovoltaic manufacturing company.
Maersk says the agreement will contribute to lowering greenhouse gas emissions from its growing fleet of dual-fuel methanol container vessels.
With the addition of the LONGi volumes, the shipping line says it is making progress in securing enough methanol for its owned dual-fuel methanol fleet, of which seven vessels are already in operation.
The Danish company’s says its combined methanol offtake agreements now meet more than 50% of the dual-fuel methanol fleet demand in 2027.
Rabab Raafat Boulos, Maersk’s chief operating officer, said methanol continues to be the most promising alternative shipping fuel 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,” Mr Boulos said.
“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.”
The deal with LONGi will see the delivery of bio-methanol produced at a facility in Xu Chang, in central China.
The bio-methanol is produced from residues (straw and fruit tree cuttings), and intends to meet Maersk’s methanol sustainability requirements, including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels.
Maersk affirmed the agreement evolved out of its growing global alternative fuels portfolio, of which several other methanol projects are currently in advanced stages of maturity.
Emma Mazhari, head of energy markets at 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,” she said.
“One example is the United States where we are engaging closely with several promising projects.”
The first methanol volumes are expected in 2026, with full production expected at the end of the decade, with Maersk confirming the long-term deal will extend into the 2030’s.
