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Maersk Secures Long-Term Bio-Methanol Supply Agreement to Cut Fleet Emissions

A.P. Moller – Maersk, a global leader in container shipping and logistics, has signed a major agreement with LONGi Green Energy Technology Co., Ltd. to secure bio-methanol as fuel for its expanding dual-fuel fleet. The multi-year offtake deal is expected to play a critical role in reducing greenhouse gas (GHG) emissions across Maersk’s ocean fleet, with the first bio-methanol volumes anticipated in 2026.

This partnership represents a significant step for Maersk in scaling up bio-methanol as a viable, lower-emission alternative to traditional fossil fuels. The bio-methanol to be sourced through LONGi will support Maersk’s ambitious net-zero goals, driven by a commitment to sustainable maritime logistics.

“Bio- and e-methanol continue to show the most promise for sustainable shipping fuel options,” commented Rabab Raafat Boulos, Chief Operating Officer of Maersk. She added, “This agreement underscores the potential of methanol in helping us bridge the gap to net-zero. But, to scale, we need a level playing field—one that can be supported by a global green fuel standard and an effective pricing structure.” The call for regulatory support underscores a shared concern within the industry about the cost disparity between clean fuels and traditional marine fuels, which remains a barrier to widespread adoption.

This latest agreement secures substantial volumes of bio-methanol produced from agricultural residues, like straw and fruit tree cuttings, at a facility in Xu Chang, Central China. The facility’s production method aligns with Maersk’s strict sustainability requirements, including at least a 65% reduction in lifecycle GHG emissions when compared to conventional fuels. Such reductions are a cornerstone of Maersk’s environmental strategy as it advances its dual-fuel fleet, with seven methanol-powered vessels already in service and more slated for delivery in the coming years.

Emma Mazhari, Head of Energy Markets at Maersk, noted the broader significance of this agreement: “We believe the future of logistics will see multiple routes to achieving net-zero, yet this collaboration with LONGi reaffirms methanol’s growing role as a scalable solution.” Mazhari also highlighted that alternative fuel projects are progressing in various regions, including the U.S., where Maersk is actively involved in methanol projects that could help bolster future supply.

This agreement marks more than a sourcing milestone; it reflects the growing demand for alternative marine fuels and the dynamic shift within the shipping industry to secure lower-emission fuel sources. With the addition of LONGi’s bio-methanol, Maersk has now secured over 50% of the anticipated methanol demand for its dual-fuel fleet by 2027. The deal is also an indication of China’s leadership in clean energy developments and the global demand for eco-friendly fuel solutions that reduce maritime emissions.

As part of Maersk’s continued push towards sustainability, the company’s ongoing bio-methanol projects will likely set an example for the maritime industry, where a shift to low-emission fuel alternatives is no longer just a vision but an operational necessity. Through partnerships like the one with LONGi, Maersk demonstrates how industry stakeholders can work together to address climate challenges while leading the way in green shipping innovation.

Maersk’s Commitment to Sustainable Green Fuel Standards

Maersk is ramping up its commitment to environmental sustainability by establishing stringent standards for biomass feedstocks and green fuels, aiming to meet and exceed global climate goals. The company’s approach is structured around three essential pillars: certification, lifecycle greenhouse gas (GHG) savings, and feedstock criteria.

To guarantee transparency, Maersk requires all biofuels to be certified by third-party entities like RSB or ISCC. This ensures all fuels meet Proof of Sustainability (PoS) requirements under a mass balance scheme, making all emission savings claims verifiable. Maersk is also active in setting certification standards to future-proof sustainable fuel practices across the industry.

In line with the EU Renewable Energy Directive, Maersk mandates that biofuels and e-fuels must achieve a minimum GHG reduction of 65% and 70%, respectively, compared to fossil fuels. This is further enforced by strict feedstock guidelines: only waste and residue materials are acceptable, with a categorical ban on first-generation crops and palm oil byproducts. Feedstocks from certified forestry sources, such as FSC, are the only permissible biomass inputs, ensuring sustainable sourcing and safeguarding biodiversity.

Maersk employs lifecycle analysis (LCA) and considers a wide array of environmental factors—like biodiversity, air quality, and resource depletion—when assessing new fuels. For e-methanol production, Maersk will use only biogenic CO₂, derived as a waste product from renewable energy sources, combined with green hydrogen. Renewable electricity must also be “additional,” contributing new clean energy to power this transition.

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