The container ship Gunde Maersk entered the Port of Oakland in Oakland, California on June 24, 2024.
Justin Sullivan | Getty Images
Singapore — Denmark-based shipping and logistics giant maersk The company unveiled its latest dual-fuel methanol container in the Southeast Asian country on Thursday, as the industry ramps up decarbonization efforts.
The vessel, newly named AP Møller, will be 350 meters long and will join Maersk’s growing fleet of vessels that can run on traditional marine fuels as well as methanol.
Ditlef Blicher, Maersk’s president for Asia Pacific, told CNBC’s “Squawk Box Asia” that the vessels represent the latest technology to decarbonize shipping.
“(This technology) will enable the industry to transition from black and fossil fuels to so-called E-methanol, or green methanol, significantly reducing carbon emissions from normal transportation,” he said.
Maersk broadly defines green fuels as fuels that reduce greenhouse gas emissions by at least 65% on a lifecycle basis compared to fossil reference fuels.
According to the International Renewable Energy Agency, methanol is primarily produced from fossil fuels, but it can also be produced from sustainable renewable energy sources.
Maersk says ships running on green methanol can save up to around 280 tonnes of CO2 per day, a key step in the company’s goal of achieving net-zero emissions by 2040.
According to the World Economic Forum, green methanol has a lower sulfur content, which reduces emissions of sulfur oxides that cause air pollution and acid rain.
AP Møller is Maersk’s ninth dual-fuel vessel out of 25 to be completed by 2027, Britcher said.
According to the company, 1.5 million tonnes of CO2 could be saved by replacing just 12 of its “regular” vessels with vessels running on green methanol. This is almost double the CO2 emissions produced by the city of Copenhagen in 2022.
What is the future of shipping?
As the world’s largest shipping company, Maersk is a key trendsetter in global trade, and many other companies are following suit in adopting methanol.
Blicher said about 170 dual-fuel methanol vessels have been ordered from across the industry, helping to increase scale.
“Maersk, the industry and our customer base are driving and investing in this technology,” said Britcher, adding that customers are increasingly working to meet their own decarbonization goals. He pointed out that
Still, while building economies of scale is essential, he believes more needs to be done to transition the industry away from black fuels, which make methanol more expensive to produce.
Britcher expects this change to come from regulations that discourage black fuels.
“We are talking about increasing the price of black fuel to ensure that it reflects the impact it has on the economy,” he said.
As the world’s largest bunkering port, Singapore has led a number of initiatives to promote sustainable shipping.
In October, Maersk raised its full-year forecast after reporting strong third-quarter results, strong demand and rising prices due to disruptions in the Red Sea. Sales were $15.8 billion, up from $12.1 billion in the same period last year.
