(Copenhagen/Denmark) – The Danish group AP Moller-Maersk wants to significantly increase the global production capacity of green methanol. As part of strategic partnerships with six companies from several countries, at least 2025 tons of methanol are to be produced per year by the end of 730.000. Part of it is needed to power twelve ships with a capacity of 16.000 containers each, which the logistics and shipping company has already commissioned.

The only market-ready solution for ship propulsion

“Green methanol is the only market-ready and scalable solution available for shipping today,” explains Maersk. Production must be increased through collaboration around the world. “That’s why these partnerships are an important milestone in kick-starting the transition to green energy.” Also on board are the Chinese CIMC Enric Holdings Ltd., the Danish solar park project developer and operator European Energy A/S, the Chinese financial service provider Green Technology Bank Co.Ltd., which specializes in sustainable investments. (GTB), the Danish energy group Ørsted A/S, the Swiss chemical group and the world's second largest methanol producer Proman AG and the US company Wastefuel Global, a company specializing in the production of methanol from urban and agricultural waste.

50.000 tons from China

CIMC Enric will develop biomethanol projects in China for Maersk. According to DIMC General Director Yang Xiaohu, they have been working closely together for two decades. In the first project phase, around 2024 tons per year are to be produced from 50.000. The second phase envisages 200.000 tonnes per year. Biomethanol is created from agricultural residues. Maersk wants to purchase the entire quantity produced.

300.000 tons from America

European Energy will produce e-methanol for Maersk's first green feeder vessel, a transporter used for the delivery and distribution of containers in ports, which is scheduled to be operational by 2023. Additionally, European Energy will develop e-methanol projects in Latin America and the United States, which will be able to produce 2025 to 2026 tons annually from 200.000/300.000. As part of the project, which covers the entire value chain from the generation of electricity from renewable energies to the production of e-methanol, the plants will be built in conjunction with new renewable energy power plants developed and built by European Energy. Maersk will become the sole buyer of the e-methanol under a multi-year agreement.

Financing an additional 50.000 to 300.000 tons per year

GTB will promote the development of biomethanol projects in China together with developers to be identified. The first plant is expected to have a production capacity of 2024 tons per year from 50.000; there is no date yet for the second project with 300.000 tons. Greentech Bank is a platform established by China's Ministry of Science and Technology and Shanghai Municipality to implement the UN 2030 Agenda for Sustainable Development.

300.000 tons from the USA

Ørsted will develop an e-methanol project in the US that will come into operation from 2025 with an annual capacity of 300.000 tonnes and sell the entire volume to Maersk. The Gulf Coast is named as the location of the Power-to-X power plant with an output of 675 megawatts. The electricity comes from new onshore wind farms and photovoltaic systems with a forecast output of 1,2 gigawatts. The biogenic carbon needed to produce e-methanol is obtained through CO2 capture “from one or more major sources,” the company said. A final investment decision will be made by the end of 2023.

150.000 tons from North America

Switzerland-based Proman AG will supply Maersk with 100.000 to 150.000 tons of green methanol per year from its facility under development in North America. The capacity is designed for 200.000 tons. The project is scheduled to go into operation in 2025, with the biomethanol produced from non-recyclable forestry residues and municipal solid waste.

Proman will also optimize global supply in Maersk's most important bunkering ports. There is also broader cooperation to advance sustainability in shipping. The Swiss say they are also examining several biomethanol and e-methanol projects in South America, Europe and Great Britain in order to develop a longer-term strategy to supply green methanol for Maersk and the shipping industry.

30.000 tons from South America

Wastefuel is building a biomethanol plant in South America that will produce over 2024 tons per year from 30.000. First, the methanol is produced from the conversion of municipal waste. Maersk also intends to purchase the entire yield here. The manufacturer could steadily increase the quantity in the coming years.

Once the bio- and e-methanol projects are fully developed, Maersk will be able to “source green methanol on a large scale in different regions of the world,” says Henriette Hallberg Thygesen, Maersk managing director of Fleet & Strategic Brands.

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https://www.maersk.com/news/articles/2022/03/10/maersk-engages-in-strategic-partnerships-to-scale-green-methanol-production

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Rendering of the container fleet ordered by Maersk and powered by methanol. © Maersk

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Six companies will supply methanol to Maersk in the future. © Maersk