Maersk signs long-term bio-methanol deal with Chinese supplier

Maersk COO Rabab Raafat Boulos: “Bio- and e-methanol continue to be the most promising alternative shipping fuels to scale up in this decade." [Photo: Maersk]

With seven methanol dual-fuel ships already in service and more to follow, Maersk continues to line up new green fuel sources. It has now entered into a long-term bio-methanol offtake agreement with China’s LONGi Green Energy Technology Co. The agreement will contribute to lowering GHG emissions from Maersk’s growing fleet of methanol dual-fuel containerships.

“Bio- and e-methanol continue to be the most promising alternative shipping fuels to scale up in this decade, and the agreement with LONGi serves as a testament to this,” says Maersk COO Rabab Raafat Boulos. “Global shipping’s main net-zero challenge is the price gap between fossil fuels and the alternatives with lower greenhouse gas emissions. We continue to strongly urge the International Maritime Organization’s member states to level the playing field by adopting a global green fuel standard and an ambitious pricing mechanism which the industry urgently needs.”

With the addition of the LONGi bio-methanol volumes, Maersk’s combined methanol offtake agreements now meet more than 50% of its methanol dual-fuel fleet demand in 2027,

The agreement adds to Maersk’s growing global alternative fuels portfolio which includes several other methanol projects that are currently in advanced stages of maturity.

“While we believe that the future of global logistics will see several pathways to net-zero, this agreement underscores the continued momentum for methanol projects that are pursued by ambitious developers across markets. China continues to play a pioneering role, and it is encouraging to also see strong market developments in other geographies as well. One example is the U.S. where we are engaging closely with several promising projects,” says Emma Mazhari, head of energy markets at Maersk.

The agreement with LONGi delivers bio-methanol produced at a facility in Xu Chang, Central China. The bio-methanol is produced from residues (straw and fruit tree cuttings). It will meet Maersk’s methanol sustainability requirements including at least 65% reductions in GHG emissions on a lifecycle basis compared to fossil fuels*.

LONGi Green Energy Technology Co. Ltd is a global leading photovoltaic (PV) manufacturer, a developer of solar power projects, and a leading electrolyzer manufacturer. LONGi has partnered with Maersk for ocean and logistics services and Maersk says that the methanol agreement marks another milestone in the partnership between the two companies.

First volumes are expected in 2026 with full production expected at the end of the decade.