Global shipping major A.P. Moller-Maersk is leading the charge to become greener. It wants 20% of its marine fuel to be alternative sources by 2030. It has also promised to make the operations of the business net zero by 2040, with a milestone that’s not very easy – it is already promising a step toward 2030, with its 20% of its marine fuel being alternative sources.
We would probably look at 15% to 20% green fuel or renewable fuel in 2030,” said Emma Mazhari, Maersk’s vice president and head of energy markets. Her point was that this kind of target would only materialize if there is energy efficiency improvement and alternative production scale-up.
The Roadmap to Green Shipping
Maersk, which burned 10-11 million metric tons of fuel oil equivalent in 2022, today sources just 3% of its fuel from alternative options. The company wants to change this, and it is concentrating on biodiesel, green methanol, and bio-methane as primary alternatives.
“Green methanol is going to feature very heavily, and bio-methane as well,” Mazhari said. She noted that bio-methane production is scaling up in Europe and North America, thereby offering competitive alternatives for liquefied natural gas (LNG) fuelled vessels. Their uptake signifies the greatest step-change yet within the marine industry towards transitioning to a change in energy.
Methanol sailing: The technological leap
To make this transition possible, Maersk has acquired a new generation of dual-fuel methanol vessels. The latest one in the fleet is an advanced ship that can accommodate 16,000 cubic meters of methanol. This reflects the company’s efforts toward innovativeness.The capacity of the vessel would be used for a return trip between Asia and Europe; it would prove green methanol as reality in sustainable shipping fuels.
By the end of 2024, the firm will have 18 vessels operated on dual fuel with methanol. This fleet of ships marks a new dawn both in terms of technological and sustainability needs.
Barriers to Scaling Alternative Fuels
Maersk faces massive hurdles in fulfilling these plans. Alternative fuels like green methanol cost over two times the marine conventional fuels. Another limitation in using green methanol is lower energy density, which makes more volume of fuel burn for covering a similar distance.
Alternative fuels cost more than double conventional fuels,” acknowledged Ditlev Blicher, President for Asia Pacific of Maersk. That cost disparity is part of what is making large-scale adoption of green fuels financially and logistically challenging.
Maersk entered into strategic partnerships to counter the imbalance in demand and supply. Notably, a strategic collaboration with LONGi Green Energy Technology in China. It is the source for which Maersk will source bio-methanol beginning in 2026. Partnerships such as this will help establish a more sustainable alternative fuels supply chain.
Investment in a Greener Future
Scaling the use of green fuels requires huge investments in infrastructure and technology. Maersk has chosen to focus on green methanol and bio-methane, but they are not unique in their emphasis on renewable fuels. Because Europe and North America continue to expand their production capacity for bio-methane, alternative fuels are likely to become more plentiful and easier to deploy across the world.
Maersk’s dual-fuel vessels and contracts for green methanol are signals of commitment to innovation and sustainability. The journey toward net-zero emissions is, however not without its obstacles. Overcoming those challenges would require continuous engagement with energy producers, supportive regulatory framework, and adequate capital investments.
Setting Industry Standards
Maersk’s green ambitions set a benchmark for the shipping industry. With an International Maritime Organization (IMO) call of 50% reduction by 2050, its initiatives resonate with global objectives on sustainability. By moving ahead, it is not just reducing its environmental footprint but leading others to do the same.
To a Net Zero Future
Maersk’s sustainability strategy represents an integrated approach to combating climate change. It focuses on alternative fuel consumption, aiming for 20% of consumption by 2030 and net-zero emissions by 2040.
The emphasis on green methanol and bio-methane highlights the significance of renewable energy in shipping’s future. Although expensive, these are pathways toward decarbonizing shipping. Through investments in innovation and strategic partnerships, Maersk is taking a leading role in paving a way toward a cleaner, greener shipping industry.
Conclusion
Maersk is one of the world’s largest shipping companies, and green fuels commitment is a critical step toward reducing the environmental impact of global trade. Despite the cost and supply challenges associated with alternative fuels, Maersk’s investment in dual-fuel methanol vessels and its contract with bio-methanol show a clear vision.
The company’s ambitious goals for 2030 and 2040 are not just about compliance with environmental regulations; they reflect a commitment to leading the shipping industry into a sustainable future. Maersk is navigating the global shipping industry toward greener waters by embracing innovation and heading challenges head-on.