A.P. Moller-Maersk has signed a long-term bio-methanol offtake agreement with LONGi Green Energy Technology.
This partnership aims to support Maersk’s efforts to reduce greenhouse gas (GHG) emissions across its expanding fleet of dual-fuel methanol-powered container vessels.
“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. Global shipping’s main net-zero challenge is the price gap between fossil fuels and 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,” stated Rabab Raafat Boulos, Chief Operating Officer at A.P. Moller-Maersk.
With the addition of methanol sourced from LONGi, Maersk has made substantial strides in securing the necessary methanol for its owned dual-fuel fleet, which already includes seven vessels in operation.
“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 US where we are engaging closely with several promising projects,” commented Emma Mazhari, head of Energy Markets at A.P. Moller-Maersk.
Maersk’s methanol offtake agreements now cover over 50% of the fuel requirements for its dual-fuel fleet by 2027. The latest deal forms part of Maersk’s expanding global portfolio of alternative fuels, which includes multiple methanol projects that are advancing toward completion.
The LONGi bio-methanol is produced from renewable residues such as straw and fruit tree cuttings at a facility in Xu Chang, Central China. It meets Maersk’s strict sustainability standards, achieving at least a 65% reduction in lifecycle GHG emissions compared to conventional fossil fuels.
