New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Maersk helping accelerate global green fuel production
30/3/2022
News
Maritime logistics operator Maersk has signed partnership agreements that aim to accelerate the supply of green fuels and the global transformation to net zero shipping.
Together with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt for Investment and Development (TSFE), Maersk is to undertake a feasibility study in 2022 that will examine Egypt-based hydrogen and green marine fuel production, powered by renewable energy, with Maersk as the committed offtaker. The partnership will expand the Suez Canal’s service offering as a main global hub for green bunkering in the region.
‘The availability of green energy and fuel in sufficient quantities and at cost competitive price levels is the single biggest challenge to the decarbonisation of global shipping,’ comments Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, Maersk.
With this in mind, Maersk has also signed six fuel sourcing partnerships that will help drive the development of some 730,000 t/y of global green methanol production by the end of 2025. The bio- and e-methanol agreements with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman and WasteFuel will ensure that Maersk has more than enough green methanol for its first 12 green container vessels currently on order.
Under the terms of the partnerships:
- CIMC ENRIC, a subsidiary of CIMC, will develop bio-methanol projects for Maersk in China. The phase one project will produce 50,000 t/y of green methanol, starting in 2024. The second phase of the project will produce 200,000 t/y, with a start date to be determined. The feedstock for the bio-methanol will be agricultural residues. Maersk intends to offtake the full volume produced.
- European Energy in Denmark will produce e-methanol for Maersk’s first green feeder vessel, which is expected to be on the water by 2023. It will also develop e-methanol projects in Latin America and the US that will have a capacity to produce up to 200–300,000 t/y of e-methanol, starting in 2025/2026. Maersk intends to offtake on long-term contracts the full volume produced.
- Green Technology Bank is to facilitate the development of bio-methanol projects in China, together with project developers yet to be identified. The first project is expected to produce 50,000 t/y, starting from 2024, with a second project planned to have a 300,000 t/y capacity at a start date yet to be determined.
- Orsted is to develop a 300,000 t/y e-methanol project in the US, to be commissioned in 2025, with the full volume produced being taken by Maersk.
- Proman plans to supply Maersk with 100,000–150,000 t/y of green methanol from its in-development facility in North America. Due to be commissioned in 2025, the facility will produce bio-methanol from non-recyclable forestry residues and municipal solid waste.
WasteFuel is developing a bio-methanol project in South America that will produce over 30,000 t/y, starting in 2024. Maersk intends to offtake the full volume produced.
