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A.P. Moller-Maersk has finalized a long-term bio-methanol offtake agreement with LONGi Green Energy, a leading Chinese photovoltaic manufacturer. This collaboration is expected to significantly reduce greenhouse gas (GHG) emissions from Maersk’s expanding fleet of dual-fuel methanol container vessels. With this deal, Maersk's methanol offtake agreements now cover over 50% of the fleet's methanol demand projected for 2027.

The bio-methanol will be produced from agricultural residues, such as straw and fruit tree cuttings, at a facility in Xu Chang, Central China. It aligns with Maersk's sustainability goals, targeting at least a 65% reduction in lifecycle GHG emissions compared to fossil fuels. Initial deliveries are anticipated in 2026, with full production expected by the end of the decade.

Rabab Raafat Boulos, COO of A.P. Moller-Maersk, emphasized the importance of bio- and e-methanol as viable alternative fuels for shipping, while highlighting the need for a global green fuel standard to bridge the price gap with fossil fuels.

In a related initiative, Maersk has partnered with Danone to reduce logistics GHG emissions by incorporating Maersk's decarbonization service, ECO Delivery Ocean, into Danone's supply chain. This service is projected to lower GHG emissions by over 40% compared to traditional fossil fuels.

Editor: Kemal Can Kayar