A P Moller - Maersk (Maersk) has entered into a long-term bio-methanol offtake agreement with LONGi Green Energy Technology Co Ltd.

The agreement will contribute to lowering GHG emissions from Maersk’s growing fleet of dual-fuel methanol container vessels.

The company said that bio- and e-methanol continue 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,” said Rabab Raafat Boulos, Chief Operating Officer, A P Moller – Maersk.

With the addition of the LONGi volumes, Maersk is making progress in securing enough methanol for its owned dual-fuel methanol fleet of which seven vessels are already in operation. Maersk’s combined methanol offtake agreements now meet more than 50% of the dual-fuel methanol fleet demand in 2027.

The agreement has evolved out of Maersk’s growing global alternative fuels portfolio of which several other methanol projects are currently in advanced stages of maturity.

“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,” said Emma Mazhari

Head of Energy Markets at A P Moller - Maersk. “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.”

The agreement with LONGi delivers bio-methanol produced at a facility in Xu Chang, Central China. The bio-methanol is produced from straw and fruit tree cuttings. Maersk says it will meet its methanol sustainability requirements, including at least 65% reduction in GHG emissions on a lifecycle basis, compared with fossil fuels.

Photo: The Alette Maersk dual-fuel container vessel.