Copenhagen, Denmark – A.P. Moller-Maersk (Maersk) has entered into a landmark long-term bio-methanol offtake agreement with LONGi Green Energy Technology Co., Ltd., reinforcing its commitment to sustainable fuel solutions aimed at significantly reducing greenhouse gas (GHG) emissions throughout its growing fleet of dual-fuel methanol-powered vessels. This partnership is a key component of Maersk's broader sustainability strategy, aligning with its ambitious objective of achieving net-zero emissions by 2040. The agreement anticipates the availability of the first bio-methanol volumes for Maersk's vessels by 2026.
"This collaboration with LONGi underscores the vital role bio-methanol plays in achieving substantial GHG reductions this decade," stated Rabab Raafat Boulos, Chief Operating Officer at Maersk. "While bio- and e-methanol present tremendous potential as alternative fuels, the primary challenge remains the cost gap with conventional fossil fuels. We are committed to advocating for global green fuel standards and an effective pricing mechanism from the International Maritime Organization to facilitate broader adoption of these sustainable options."
LONGi, a global leader in photovoltaic manufacturing and renewable energy development, will provide bio-methanol produced from agricultural and forestry byproducts, including straw and trimmed branches, at its new facility located in Xu Chang, Henan province, China. This bio-methanol complies with Maersk's rigorous sustainability standards and delivers a reduction of at least 65% in greenhouse gas emissions throughout its entire lifecycle when compared to conventional fossil fuels. This positions bio-methanol as a fundamental element in Maersk's efforts to decarbonize its operations and promote environmentally responsible fuel alternatives.
Key Highlights of the LONGi-Maersk Bio-Methanol Agreement:
Location: The bio-methanol will be produced in Xu Chang, Henan Province, Central China, strategically chosen for its robust renewable energy infrastructure.
Developer: LONGi Green Energy Technology Co., Ltd. is a prominent player in photovoltaic manufacturing and sustainable energy solutions. This agreement strengthens their existing logistics partnership with Maersk, fostering enhanced collaboration in sustainability initiatives.
Production Timeline: Bio-methanol production is slated to begin in 2026, with full operational capacity anticipated by the end of the decade, ensuring a steady supply to meet Maersk's long-term fuel requirements.
Emissions Reduction: The bio-methanol produced under this agreement is set to achieve a lifecycle emissions reduction target of at least 65%, corresponding to 94 g CO2e/MJ, aligning with Maersk's stringent sustainability standards.
Long-Term Scope: This agreement is expected to extend well into the next decade and aims to meet over 50% of Maersk's projected bio-methanol demand for its dual-fuel methanol fleet by 2027. Currently, seven of Maersk's dual-fuel vessels are operational, marking significant progress toward the expansion of its sustainable fleet.
Emma Mazhari, Head of Energy Markets at Maersk, highlighted the growing momentum for sustainable fuels like methanol. "While there are multiple pathways to achieving net-zero emissions, the ongoing commitment to methanol projects by leading developers like LONGi demonstrates its viability as a sustainable fuel. China's proactive approach to alternative fuels is inspiring, and we're also seeing similar enthusiasm in other markets, particularly in the U.S., where we are actively engaging with new projects."
For more information on Maersk's bio-methanol sustainability standards, please refer to their official guidelines at Maersk Press.
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