Maersk lines up another U.S. green methanol source

Maersk’s next generation containerships will require at-scale production of green methanol.

A.P. Moller – Maersk (Maersk) continues to secure new sources of green methanol to fuel its next generation of vessels. In its latest move on this front, it has signed a Letter of Intent with Houston-based SunGas Renewables, Inc., a spin-out of GTI Energy, and a leader in providing technology and equipment systems for large-scale production of renewable fuels. This is Maersk’s ninth such partnership to drive the acceleration of global production capacity for green methanol.

The Letter of Intent covers the production of green methanol from multiple facilities to be developed by SunGas in the United States from which Maersk intends to offtake full volumes of green methanol. The first facility is expected to begin operations in 2026 and have an annual production capacity of approximately 390,000 tonnes.

SunGas joins eight other strategic partners working to supply the green fuel needed for the 19 methanol enabled container vessels Maersk currently has on order. The others are Carbon Sink, CIMC ENRIC, Debo, European Energy, Green Technology Bank, Orsted, Proman, and Wastefuel.

“Securing green marine fuels at a global scale within this decade will require rapid scale up of green methanol production capacity using a variety of technology and feedstock pathways,” said Emma Mazhari, head of green sourcing and portfolio management at A.P. Moller – Maersk. “We are very pleased to welcome SunGas Renewables as a strategic partner in our efforts to achieve our goal of net zero greenhouse gas emissions in 2040 across our entire business, and to ensure meaningful progress is made within this decade in line with the Paris Agreement.”

The SunGas facilities will utilize its flagship System 1000 platform to convert sustainably sourced residues from the forestry and wood products industries into green methanol.

Maersk defines “green fuels” as those with low (65-80% reduction) or very low (80-95% reduction) GHG emissions on a lifecycle basis compared to fossil fuels.