Denmark – A.P. Moller-Maersk has formed strategic partnerships with six leading companies in an effort to increase the global production capacity of green methanol to at least 730,000 tonnes/year by the end of 2025.
CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel are among the six companies on this list. Maersk will be able to produce far more green methanol than is required for the first 12 green container ships currently on order by the end of 2025, if not earlier. Maersk will be able to source green methanol at large scale across several regions of the world once these projects of both bio- and e-methanol are fully developed.
A net-zero fuel value chain can only be achieved through cooperation and investment in cutting-edge projects. Maersk will continue to work on these and other projects with a wide range of leading companies in order to speed up the urgent switch to green energy.
Maersk will work with CIMC ENRIC in China to develop bio-methanol projects. Once the first phase is completed in 2024, 50,000 tonnes of green methanol will be produced annually. With a capacity of 200,000 tonnes/year, the second phase of the project will begin at some point in the future. Agricultural waste will be used as a source of bio-methanol. It is Maersk’s intention to offtake the entire output.
After signing an agreement, European Energy will supply Maersk’s first green feeder vessel with e-methanol by 2023. E-methanol projects in Latin America and the United States will also be developed in 2025/2026 with a capacity of producing 200-300,000 tonnes of e-methanol annually. Maersk intends to take on the entire volume produced on long-term contracts in order to help its customers meet their own ambitious emission reduction goals.
Furthermore, the Green Technology Bank (GTB) will work with Chinese project developers to develop bio-methanol projects in the country. It is expected that the first project will begin production in 2024, and the second project will be determined in the future. It will provide Maersk with 50,000 tons/year of green methanol.
Orsted and Maersk are teaming up to develop an e-methanol plant in the US that will be able to produce 300,000 tonnes of methanol per year by 2025. It is Maersk’s intention to offtake the entire output.
In addition, Proman will aim to supply Maersk with 100,000 – 150,000 tonnes/year of green methanol from its in-development facility 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.
The last deal with WasteFuel, starting in 2024 plans to produce over 30,000 tons of bio-methanol per year in South America. It is Maersk’s intention to offtake the entire output.