The global container carrier from Copenhagen has signed a long-term offtake agreement with the Chinese LONGi Green Energy Technology for the supply of bio-methanol for the former's growing fleet of dual-fuel vessels.

The first batch of the fuel, produced at LONGi's facility in Xu Chang in Central China from residues such as straw and fruit tree cuttings, will be supplied in 2026, with full production expected by end-decade. "It will meet Maersk's methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels of 94g CO2e/MJ," the Danish shipping company said in a press release.

Maersk's combined offtake agreements now meet over 50% of the dual-fuel methanol fleet's bunker demand in 2027 (seven vessels are already operational, sailing also in the Baltic).

"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. We continue to strongly urge the International Maritime Organization's Member States to level the playing field by adopting a global green fuel standard and an ambitious pricing mechanism which the industry urgently needs," Rabab Raafat Boulos, Maersk's COO, stressed.

The company's Head of Energy Markets, Emma Mazhari, added, "While we believe that the future of global logistics will see several pathways to net-zero, this agreement underscores the continued momentum for methanol projects that are pursued by ambitious developers across markets. China continues to play a pioneering role, and it is encouraging to also see strong market developments in other geographies as well. One example is the US, where we are engaging closely with several promising projects."

Photo: Port of Gothenburg