Maersk inks landmark green methanol offtake agreement with China’s Goldwind

Business Developments & Projects

November 22, 2023, by Naida Hakirevic Prevljak

Danish integrated logistics company A.P. Moller-Maersk and Chinese clean energy company Goldwind have entered into the first large-scale green methanol offtake agreement for the global shipping industry.

As informed, the long-term offtake agreement for annual volumes of 500KT will enable low-carbon operations for the first twelve large methanol-enabled Maersk vessels on order. The first volumes are expected in 2026.

“This deal is a milestone for Maersk as it enables us to significantly reduce our emissions footprint in this decade and stay aligned with the 1.5-degree Celsius trajectory as set out in the Paris Agreement, ensuring continued supply of low carbon shipping services to our customers in the second half of this decade,” Rabab Raafat Boulos, Chief Infrastructure Officer at Maersk, commented.

The company aims to reach net-zero greenhouse gas emissions by 2040 across its business. The deal significantly de-risks the initial stages of Maersk’s net-zero journey and supports expectations for a competitive green methanol market towards 2030.

The record-high volumes can annually propel more than half the methanol-enabled capacity Maersk currently has on order, according to the Danish company.

“Goldwind respects Maersk as a pioneer in the field of maritime green fuel and we are excited to jointly promote the green transition with Maersk. With this project, Goldwind will continue to explore the innovative application of new technologies, pursue the organic combination of green electricity and green fuel production, and optimize the production process of green methanol,” Wu Gang, Chairman, Goldwind, said.

“Goldwind is committed to collaborating with companies involved in the green methanol industry, with the aim to make green methanol one of the most important and economically feasible clean maritime fuels in the future.”

The volumes combine a mix of green bio-methanol and e-methanol, all produced utilizing wind energy at a new production facility in Hinggan League, Northeast China, around 1000km northeast of Beijing.

Following the offtake agreement, Goldwind expects to confirm a final investment decision for the facility by the end of the year.

“We are encouraged by the agreement because its scale and price confirm our view that green methanol currently is the most viable low-emission solution for ocean shipping that can make a significant impact in this decade,” Rabab Raafat Boulos continued.

“The deal is a testament to the momentum and vast efforts we see among ambitious developers driving projects forward across geographies, however, we still have a long way to go in ensuring a global green fuels market that can enable the decarbonisation of global shipping,” she concluded.

Maersk will take delivery of its first large ocean-going methanol-enabled vessel in the first quarter of 2024. The 16,200 TEU newbuilding was launched in South Korea last month.

To remind, Maersk has a total of 25 methanol-powered container carriers on order at Hyundai Heavy Industries, Hyundai Mipo Dockyard and Yangzijiang Shipbuilding Group. These include six vessels with a nominal capacity of 17,000 TEU ordered in October 2021, twelve 16,000 TEU boxships and one feeder ordered in 2021. Six mid-sized container vessels are booked at Yangzijiang Shipbuilding Group in China.

The company said it is diligently working on sourcing solutions with a broad range of global partners for the entire vessel series being delivered in 2024-25.