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. Maersk, with the addition of the LONGi volumes, is making progress in securing enough methanol for its owned dual-fuel methanol fleet of which 7 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.
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.
…said Rabab Raafat Boulos, Chief Operating Officer, A.P. Moller – Maersk.
The agreement with LONGi delivers bio-methanol produced at a facility in Xu Chang, Central China. The bio-methanol is produced from residues (straw and fruit tree cuttings). It will meet Maersk’s methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels.
More about the bio-methanol agreement:
- Location: Xu Chang, Henan province (Central China)
- Developer: LONGi Green Energy Technology Co. Ltd
- Timing: First volumes are expected in 2026 with full production expected at the end of the decade.
- Duration: Long term deal – reaching into next decade.
- Production: The bio-methanol production will begin in 2026 and is produced from residues (straw and fruit tree cuttings). It will meet Maersk’s methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuel of 94 g CO2e/MJ.
