Maersk in new U.S. green methanol partnership

Written by Nick Blenkey
Maersk will take total production frpm new Carbon Sink green methanol plant

Image: Maersk

As yesterday’s news from Disney Cruise Lines underscores, green methanol is proving an increasingly attractive option as a marine fuel. The only significant problem ship operators face is getting enough of it. Maersk, the first major shipowner to commit to the fuel, has been lining up its green methanol sources in parallel with its ordering of new methanol-fueled vessels.

Earlier this week, it signed a strategic partnership with U.S. based project developer Carbon Sink LLC. This is Maersk’s eighth such agreement in the efforts to accelerate global production of green methanol and its second in the U.S. following an earlier agreement with California-based WasteFuel.

Now Maersk has signed a Letter of Intent covering the development by Carbon Sink of green methanol production facilities in the United States. The first facility will be co-located with the Red River Energy existing bioethanol plant in Rosholt, South Dakota, and will have a production capacity of approximately 100,000 tonnes per year.

The commercial start is anticipated in 2027 and Maersk intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations.

“Securing green fuels at scale in this decade is critical in our fleet decarbonization efforts,” said Berit Hinnemann, head of green fuels sourcing at A.P. Moller – Maersk. “We have set a 2040 net zero target for our entire business – but importantly to stay in line with the Paris Agreement, we have also set 2030 targets to ensure meaningful progress in this decade. Partnerships are essential on this journey – and I am very pleased to welcome Carbon Sink on board.”

Carbon Sink uses a commercially available technology to produce green methanol by combining green hydrogen from electrolysis of water using additional renewable electricity and biogenic CO2. It says that the CO2 for the first project will be waste CO2 captured from the Red River Energy bio-ethanol plant, recycling those emissions into green methanol.

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