A.P. Moller – Maersk (Maersk) has solidified its commitment to sustainability by entering into a long-term bio-methanol offtake agreement with LONGi Green Energy Technology Co., Ltd. This strategic partnership aims to significantly reduce greenhouse gas (GHG) emissions from Maersk’s expanding fleet of dual-fuel methanol container vessels. The first shipments of bio-methanol are anticipated to commence in 2026.
The agreement underscores the increasing viability of bio-methanol and e-methanol as alternative fuels in the maritime industry, showcasing their potential to achieve meaningful GHG emissions reductions this decade. Despite the progress, Maersk acknowledges a major challenge facing global shipping: the price disparity between fossil fuels and cleaner alternatives. To address this, Maersk continues to advocate for the International Maritime Organization’s (IMO) member states to implement a global green fuel standard alongside a robust pricing mechanism that the industry urgently needs.
Rabab Raafat Boulos, Chief Operating Officer of A.P. Moller – Maersk, stated, “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. Our combined methanol offtake agreements now satisfy over 50% of the dual-fuel methanol fleet demand projected for 2027.”
The partnership with LONGi aligns with Maersk’s broader commitment to alternative fuels. Several other methanol projects are currently in advanced stages of development within Maersk’s global alternative fuels portfolio.
Emma Mazhari, Head of Energy Markets at A.P. Moller – Maersk, emphasized the importance of diverse pathways to achieving net-zero emissions in global logistics. “This agreement reinforces the ongoing momentum for methanol projects driven by ambitious developers across various markets. China is taking the lead, and it’s promising to observe similar advancements in other regions, including the U.S., where we are actively engaging with several promising projects.”
The bio-methanol sourced from LONGi will be produced at a facility in Xu Chang, located in Central China’s Henan province. This facility will utilize agricultural residues, specifically straw and fruit tree cuttings, to produce bio-methanol that meets Maersk’s sustainability standards. The bio-methanol is expected to achieve at least a 65% reduction in GHG emissions over its lifecycle compared to traditional fossil fuels, effectively supporting Maersk’s sustainability initiatives.
Key Details of the Agreement:
- Location: Xu Chang, Henan province, Central China
- Developer: LONGi Green Energy Technology Co. Ltd., a leading global manufacturer of photovoltaic (PV) systems and electrolyzers, which has previously partnered with Maersk for ocean and logistics services.
- Timing: First volumes expected in 2026, with full production anticipated by the end of the decade.
- Duration: A long-term agreement extending into the next decade.
- Production: Initiated in 2026 from agricultural residues, meeting stringent sustainability requirements of Maersk.
This agreement represents a significant step forward in Maersk’s goal to decarbonize its operations, aiming for net-zero emissions across its entire business by 2040 through the adoption of new technologies, low-emission fuels, and the commissioning of new vessels.
This partnership between Maersk and LONGi is set to pave the way for significant advancements in the maritime industry’s transition to cleaner energy solutions, highlighting the vital role of collaborative efforts in achieving sustainability goals.
About LONGi Green Energy
Founded in 2000, LONGi Green Energy Technology Co., Ltd. is dedicated to leading the transition to green energy through solar technology. The company is focused on five core areas: monocrystalline wafers, solar cells and modules, distributed generation solar solutions, utility plant system solutions, and hydrogen equipment solutions. With a commitment to advancing sustainable development, LONGi operates in over 150 countries, supporting the global push towards a zero-carbon future.
About Maersk
A.P. Moller – Maersk is a global leader in integrated logistics services, operating in over 130 countries and employing approximately 100,000 people. The company is committed to innovation and sustainability as it navigates the challenges of global logistics and works towards a greener future.
Source A.P. Moller – Maersk