Maersk Strikes Agreement For Securing Supply Of Green Methanol

The largest shipping company of the world, A.P. Moller-Maersk, has struck and agreement for secured supply of green methanol as the company gets ready to begin operations of its fi carbon neutral container by 2023, the company said.

Transportation by sea accounts for more than 90 per cent of the global trade while only about 3 per cent of the total carbon dioxide emissions of the world is accounted for by the industry.

Maersk has set itself a target of achieving net-zero emissions by 2050 which would be possible if the company is able to have a carbon neutral fleet by 2030.

“Yes, it’s one vessel, but it’s a prototype for a scalable carbon-neutral solution for shipping,” Morten Bo Christiansen, Maersk’s head of decarbonisation, told the media.

Its first agreement with Denmark’s REintegrate for the production of about 10,000 tonnes of carbon neutral e-methanol, the quantity of the fuel that would be needed by te ship for operations of a year, has been signed by the company, Maersk said.

There are also underway in the company at addressing the challenges in securing the supply of new type of fuel of which, according to Christiansen, the company will need about 20 million tonnes for operations of its entire fleet of ships throughout a year. As the name suggests, green methanol is made by using renewable sources such as biomass and solar energy.

“Let’s stop talking about fossil fuels and instead focus on scaling this prototype because it’s actually solving the problem,” he said, while declining to give a time frame for when such a market would be realistic.

Christiansen said that the costs of the future looking engines for the company’s ships that will be able to run on green methanol will be between 10 and 15  per cent more than conventional fossil fuel engines for the first five years while the cost of the new fuel will be twice as much as conventional bunker fuel.

“The good news is that because of the amount of oil we consume we can actually start shaping a market just on our demand,” Christiansen said.

While the company will bear the price of the costlier vessels and carried on the balance sheets of the company, Maersk will share the additional costs of the greener fuel with its customers, he added.

“But it’s actually not that much more expensive, because even if we double our fuel cost, the impact on a pair of sneakers is less than five cents,” Christiansen added.

(Adapted from MarineLink.com)



Categories: Economy & Finance, Entrepreneurship, Regulations & Legal, Strategy, Sustainability, Uncategorized

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