Maersk signs long-term methanol sourcing deal with Chinese company 

In Denmark, A.P. Moller-Maersk (Maersk) said it has entered into a long-term bio-methanol offtake agreement with LONGi Green Energy Technology. 

The agreement will contribute to lowering GHG emissions from Maersk’s growing fleet of dual-fuel methanol container vessels, the firm said.

“Bio- and e-methanol continues 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 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,” said Rabab Raafat Boulos, COO, A.P. Moller-Maersk.

With the addition of the LONGi volumes, Maersk said it is making progress in securing enough methanol for its owned dual-fuel methanol fleet of which 7 vessels are already in operation. Maersk’s combined methanol offtake agreements now meet more than 50% of the dual-fuel methanol fleet demand in 2027, the company said.

The agreement with LONGi delivers bio-methanol produced at a facility in Xu Chang, Central China. The bio-methanol is produced from residues such as straw and fruit tree cuttings. First volumes are expected in 2026 with full production expected at the end of the decade, Maersk said.

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