Danish distribution conglomerate Maersk has signed a letter of intent to facilitate the production of more green methanol, a sustainable alternative to traditional marine fuel. This marks the beginning of a new partnership between Maersk and Carbon Sink, a US-based company producing sustainable fuels.
This partnership will see the development of new production facilities in the USA, the first being co-located within an existing bioethanol plant in South Dakota, sharing the space with Arizona-based energy company Red River Energy.
However, it’s not just space that the companies will be sharing, as Carbon Sink will be using waste CO2 from the Red River Energy plant and recycling those emissions into the production of green methanol.
Maersk claims that this facility has a production capacity of approximately 100,000 tonnes per year.
It is due to be operational in 2027 and Mearsk says that it intends to purchase the full volume of the plant.
Berit Hinnemann, Maersk’s Head of Green Fuels Sourcing, said: “Securing green fuels at scale in this decade is critical in our fleet decarbonisation efforts.”
He elaborated: “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.”
This is the eighth agreement of its kind that Maersk has made this year as it seeks to ensure a strong future of green methanol production to power its recently-ordered marine vessels capable of running on green fuel.
Chief Executive of Carbon Sink Steve Meyer spoke positively of the partnership, saying: “We are very pleased to be working with Maersk in support of their mission to decarbonise the shipping sector. Carbon Sink brings a vast wealth of knowledge, experience and partnerships to help them achieve their ambitious corporate goals.”