Maersk has entered into a long-term bio-methanol offtake agreement with LONGi Green Energy Technology. LONGi will deliver bio-methanol produced at a facility in Xu Chang, Central China. The first volumes are expected in 2026.
LONGi Green Energy Technology is a global leading photovoltaic (PV) manufacturer, a developer of solar power projects, and a leading electrolyser manufacturer. LONGi has partnered with Maersk for ocean and logistics services during its growth journey, making the agreement another milestone in the partnership between the two companies.
The bio-methanol is produced from residues (straw and fruit tree cuttings). It will meet Maersk’s methanol sustainability requirements including at least 65 per cent reductions in greenhouse gas (GHG) emissions on a lifecycle basis compared to fossil fuels. First volumes are expected in 2026 with full production expected at the end of the decade.
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50% of the dual-fuel methanol fleet demand in 2027
The bio-methanol is meant for Maersk’s growing fleet of dual-fuel methanol container vessels. It has evolved out of Maersk’s growing global alternative fuels portfolio of which several other methanol projects are currently in advanced stages of maturity.
With the addition of the LONGi volumes, Maersk is making progress in securing enough methanol for its owned dual-fuel methanol fleet of which seven vessels are already in operation. The company’s combined methanol offtake agreements now meet more than fifty per cent of the dual-fuel methanol fleet demand in 2027.
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‘Main net-zero challenge is price gap’
‘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,’ says Rabab Raafat Boulos, COO at Maersk. ‘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.’
Emma Mazhari, Head of Energy Markets at Maersk: ‘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.’
Picture by Maersk.
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