Maersk, ENEOS to invest $100 million in proposed US-based bio-methanol plant

Danish shipping company A.P. Moller-Maersk and Japanese energy firm ENEOS will invest $100 million in Maersk’s methanol unit C2X, primarily to fund a bio-methanol project in the US.

PHOTO: Maersk's methanol-capable vessel, Adrian Maersk, docked in Rotterdam. A.P. Moller-Maersk

US-based renewables producer SunGas Renewables is planning its second bio-methanol plant in Central Louisiana through its subsidiary Beaver Lake Renewable Energy (BLRE). C2X joined the project in May 2024.

The companies plan to produce around 500,000 mt/year of bio-methanol using biomass as feedstock. Construction is expected to begin in 2026, with operations scheduled to start in 2028, according to BLRE’s website.

BLRE is currently negotiating long-term offtake agreements with Maersk and other shipping firms, as well as customers outside the sector.

Part of the $100 million investment will go toward reaching a final investment decision and supporting construction of the plant. “This investment will also be used to advance the rest of C2X’s portfolio comprising projects in Spain, Egypt, and other US locations,” ENEOS added.

Apart from this project, Maersk also intends to purchase around 390,000 mt/year of bio-methanol from SunGas Renewables' first plant in the US, expected to be operational in 2026. The Danish firm plans to deploy a total of 19 methanol-capable vessels this year.

By Konica Bhatt

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