Maersk to Go Green, Signs Shipping Industry's First Large-scale Green Methanol Agreement
Shipping giant Maersk (MAERSKb.CO) has reached an agreement with China’s Goldwind (002202.SZ) to use their green methanol to power their fleet. This is the shipping industry’s first large-scale green methanol agreement. Maersk is making significant investments in green fuels as part of its plan to achieve net-zero emissions by 2040. The company aims to outpace the shipping industry, which envisions net-zero emissions by 2050.
The shipping industry is accountable for 3% of global greenhouse gas emissions. With this in mind, Maersk is planning to make more deals with Chinese companies. China, where the production of green methanol is a political agenda, is in a position to provide green methanol at affordable prices, according to Reuters. Morten Bo Christiansen, Maersk’s Head of Energy Transition, was quoted as saying that the company is looking to work with more Chinese companies.
Christiansen, however, declined to comment on the exact deal value. Goldwind is expected to deliver up to half a million tonnes of methanol annually by 2026.
With this, Maersk could power 12 large container ships annually. The company has ordered 24 methanol-enabled vessels as of now.
The green methanol is made up of a mix of green bio-methanol and e-methanol, produced by making use of wind energy in Hinggan League, northeast China.
Earlier in September, A.P. Moller Holding (APMH), the majority owner of Maersk, had established a new company called C2X to constitute large-scale green methanol operations. The company reached a framework agreement worth up to $3 billion for the production of green fuel in the Suez Canal economic zone.
