Maersk secures another long-term biomethanol offtake deal
Danish shipping major A.P. Moller-Maersk will procure an unspecified amount of biomethanol from Chinese photovoltaic manufacturer Longi.
PHOTO: The Maersk-owned methanol-capable ship Maersk Halifax. A.P.Moller-Maersk
The first biomethanol deliveries will begin in 2026, while full-scale production is expected by the end of the decade.
Maersk currently has seven methanol-capable vessels in operation and another 18 confirmed orders for delivery towards 2027.
It has also signed supply agreements with 11 other methanol producers to source over 2.2 million mt/year of green methanol by 2025 for its methanol-capable fleet. With this new agreement, the shipping giant now aims to meet over half of its dual-fuel methanol fleet's fuel needs by 2027.
The biomethanol will be produced from agricultural residues - such as straw and pruned fruit tree cuttings - at Longi's facility in Xu Chang, Central China.
“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 Maersk said.
This agreement highlights "continued momentum" for methanol projects across different markets, Mazhari said.
By Konica Bhatt
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