Maersk in long-term biomethanol deal with Chinese firm
Logistics firm A.P. Moller – Maersk (Maersk) has entered into a long-term bio-methanol offtake agreement with Chinese photovoltaic (PV) manufacturer LONGi Green Energy Technology Co. The agreement will contribute to lowering GHG emissions from Maersk’s growing fleet of dual-fuel methanol container vessels.
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.
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 fuel of 94 g CO2e/MJ.
The bio-methanol production will begin in 2026 and is produced from residues (straw and fruit tree cuttings).
This agreement will allow TE H2, a joint venture between TotalEnergies and the EREN Group, together with the two Danish companies, Copenhagen Infrastructure Partners (CIP), through its Energy Transition Fund, and A.P. Møller Capital, through its Emerging Markets Infrastructure Fund, to launch the pre-FEED studies.
Located near the Atlantic coast in the Guelmim-Oued Noun region, the ‘Chbika’ project aims to build 1 GW of onshore solar and wind capacities that will power the production of green hydrogen through the electrolysis of desalinated seawater and its transformation into 200,000 tons per year of green ammonia for the European market. This project will constitute the first phase of a development program aimed at creating a world-scale green hydrogen production hub.
