GHG Emissions, Commercial, Sourcing Renewables - November 17, 2022
A.P. Moller - Maersk Partners to Increase Green Marine Fuels Production
A.P. Moller - Maersk and Carbon Sink signed a strategic partnership to accelerate green marine fuels production. This is Maersk’s 8th such agreement in the efforts to accelerate global production of green methanol.
The parties have 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, USA, and will have a production capacity of approximately 100,000 tons 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 decarbonisation efforts. 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,” said Berit Hinnemann, Head of Green Fuels Sourcing, A.P. Moller - Maersk, in a statement.
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. Carbon Sink joins seven other strategic partners working to secure the green fuel needed for the 19 container vessels Maersk currently has on order which are capable of operating on green methanol.
In March, Maersk announced six partnerships with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel with the intent of sourcing at least 730,000 tons per year by the end of 2025. A seventh partnership with Debo was added in August.