Maersk said on that it agreed to a major long-term supply deal for bio-methanol with China-based Longyuan LONGi Greentech Company, furthering its strategic initiative in reducing Greenhouse Gas emissions across an expanding Dual-fuel methanol fleet. The new supply came as Maersk reinforces its success in being ahead of bold environment goals it set, including achieving the targets approved by the Science-based Targets Network, with which the company is aligned in reaching net-zero emissions by 2040.
Maersk has been exploring all its means to reduce emissions: one of which is its work on green fuels integrated with improved fuel efficiency on the operations. It was also working with its partners along the supply chain and coordinating efforts to be jointly aligned in the fight of impacts on the environment. The new supply agreement with LONGi will significantly contribute toward these efforts, bringing Maersk closer to the objective of supplying more than 50% of the company’s dual-fuel methanol fleet’s fuel demand by 2027. Maersk presently operates seven vessels on bio-methanol, which is a clean fuel substitute sourced from feedstock made from biofuels.
Bio-methanol has been established as a feasible low-carbon alternative for conventional fossil-based fuels. It has more energy levels than any other form of biofuels that make it best suited to long-distance transportation-an added advantage for the shipping firm. Rabab Raafat Boulos, who is the Chief Operating Officer at Maersk told the audience how important and promising bio- and e-methanol are becoming as alternative fuels for high-scale production in the ship industry this decade. Though she admitted the gap when it comes to the value difference between fossil fuels with their lower emission counterparts.
LONGi will be providing bio-methanol, which will be produced starting 2026 at a facility in Xu Chang, central China. Production will be based on agricultural residues like straw and fruit tree cuttings, so feedstock will be sourced sustainably. This will allow Maersk to meet its stringent sustainability requirements, which call for at least a 65% reduction in lifecycle GHG emissions compared with fossil fuel use.
Underlining the bigger picture of this deal, Emma Mazhari, head of energy markets at Maersk, said, “Global cooperation is a big driver in pushing forward alternative fuel projects. China has been leading in the development of methanol technology and I hope the same kind of developments would happen elsewhere.” Mazhari’s words reflect the ever-growing pace of methanol-based solutions in the shipping industry as stakeholders work together to usher in a greener future.