Maersk Signs Long-Term Methanol Sourcing Deal

A.P. Moller - Maersk (Maersk) has signed a long-term bio-methanol offtake agreement with LONGi Green Energy Technology Co., Ltd. This partnership will help reduce greenhouse gas emissions from Maersk’s expanding fleet of dual-fuel methanol-powered container vessels.

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, Chief Operating Officer, A.P. Moller - Maersk

With the inclusion of LONGi's volumes, Maersk is advancing in securing adequate methanol supplies for its owned dual-fuel methanol fleet, which currently includes 7 vessels in operation. Maersk’s cumulative methanol offtake agreements now fulfill over 50% of the anticipated demand for its dual-fuel methanol fleet by 2027.

This agreement stems from Maersk’s expanding global portfolio of alternative fuels, with several additional methanol projects reaching advanced development stages.

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.

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

The LONGi agreement supplies bio-methanol from a facility in Xu Chang, Central China, where it is produced from agricultural residues such as straw and fruit tree cuttings. This bio-methanol will align with Maersk's sustainability standards, ensuring at least a 65% reduction in greenhouse gas emissions on a lifecycle basis compared to fossil fuels.

More about the bio-methanol agreement:

1. Location: Xu Chang, Henan province (Central China)
2. 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.
3. Timing: First volumes are expected in 2026 with full production expected at the end of the decade.
4. Duration: Long term deal – reaching into next decade.
5. 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.