Maersk, SunGas sign deal for green methanol
First facility expected to begin operations in 2026 & have annual production capacity of approximately 390,000 tonnes
Maersk has signed a green* methanol letter of intent with U.S-based SunGas Renewables, a spin-out of GTI Energy, and a leader in providing technology and equipment systems for large-scale production of renewable fuels.
"This is Maersk's ninth such partnership to drive the acceleration of global production capacity for green methanol," says an official release.
(*Green is defined as fuels with low (65-80% reduction) or very low (80-95% reduction) GHG emissions on a lifecycle basis compared to fossil fuel.)
The LoI covers the production of green methanol from multiple facilities to be developed by SunGas in the United States from which Maersk intends to offtake full volumes of green methanol, the release added. The first facility is expected to begin operations in 2026, and have an annual production capacity of approximately 390,000 tonnes.
"Securing green marine fuels at a global scale within this decade will require rapid scale up of green methanol production capacity using a variety of technology and feedstock pathways," says Emma Mazhari, Head of Green Sourcing and Portfolio Management, Maersk. "We are very pleased to welcome SunGas Renewables as a strategic partner in our efforts to achieve our goal of net zero greenhouse gas emissions in 2040 across our entire business, and to ensure meaningful progress is made within this decade in line with the Paris Agreement."
Robert Rigdon, CEO, SunGas adds: "Our partnership with Maersk marks an important milestone for SunGas as we continue our mission to make a global impact in the energy transition. We applaud Maersk's leadership in catalysing decarbonization of the entire marine shipping industry and look forward to working together to accelerate growth of production capacity for green methanol marine fuels."
SunGas joins eight other strategic partners working to supply the green fuel needed for the 19 methanol-enabled container vessels Maersk currently has on order. The other partners are Carbon Sink, CIMC ENRIC, Debo, European Energy, Green Technology Bank, Orsted, Proman, and Wastefuel, the release said.