Maersk Inks Green Methanol Supply Deal with US-based Carbon Sink

Danish shipping giant A.P. Moller - Maersk announced it is partnering with U.S.-based Carbon Sink to secure a supply of green methanol for its next generation of cleaner burning containerships.

Under a recently signed letter of intent (LOI), Carbon Sink will develop 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, S.D. and will have a production capacity of approximately 100,000 tonnes per year from 2027. Maersk said it intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations.

This green methanol supply deal is Maersk’s eighth as part of its efforts to accelerate global production of green methanol needed for the 19 containerships it currently has on order which are capable of operating on the low carbon fuel. 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 tonnes per year by the end of 2025. A seventh partnership with Debo was added in August.

“Securing green fuels at scale in this decade is critical in our fleet decarbonization 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.

Carbon Sink produces green methanol by combining green hydrogen from electrolysis of water using additional renewable electricity and biogenic CO2. For the first project, the CO2 will be waste captured from the Red River Energy bioethanol plant recycled into green methanol.

“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. Our multi-project development strategy creates a pathway for the supply of significant volumes of green methanol to help meet the demand of Maersk’s growing dual-fuel ship fleet,” said Steve Meyer, CEO of Carbon Sink.

According to Maersk, its 19 new methanol-fueled ships will generate annual CO2 emissions savings of around 2.3 million tonnes when deployed to replace older vessels.