Sea Freight

Maersk Signs Long-Term Methanol Sourcing Deal

Major deal with LONGi confirms the ability of bio-methanol to achieve significant GHG emissions reductions in this decade

TLME News Service

A.P. Moller - Maersk (Maersk) has entered into a long-term bio-methanol offtake agreement with LONGi Green Energy Technology Co., Ltd.

The agreement will contribute to lowering GHG emissions from Maersk’s growing fleet of dual-fuel methanol container vessels.

Rabab Raafat Boulos, Chief Operating Officer, A.P. Moller - Maersk said: "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."

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With the addition of the LONGi volumes, Maersk is making progress in securing enough methanol for its owned dual-fuel methanol fleet of which 7 vessels are already in operation.

Maersk’s combined methanol offtake agreements now meet more than 50% of the dual-fuel methanol fleet demand in 2027.

The agreement has evolved out of Maersk’s growing global alternative fuels portfolio of which several other methanol projects are currently in advanced stages of maturity.

Emma Mazhari, Head of Energy Markets at A.P. Moller - Maersk said: "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."

The agreement with LONGi delivers bio-methanol produced at a facility in Xu Chang, Central China.

The bio-methanol is produced from residues (straw and fruit tree cuttings). It will meet Maersk’s methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels.

Salient points of the bio-methanol agreement:

  • Location: Xu Chang, Henan province (Central China)

  • Developer: LONGi Green Energy Technology Co. Ltd is a global leading photovoltaic (PV) manufacturer, a developer of solar power projects, and a leading electrolyzer 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.

  • Timing: First volumes are expected in 2026 with full production expected at the end of the decade.

  • Duration: Long term deal – reaching into next decade.

  • Production: The bio-methanol production will begin in 2026 and is produced from residues (straw and fruit tree cuttings). It will meet Maersk’s methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuel of 94 g CO2e/MJ.

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