Maersk has expanded its alternative fuel sourcing by signing a long-term bio-methanol agreement with Chinese supplier LONGi Green Energy Technology, with deliveries set to begin in 2026. According to Maersk’s Chief Operating Officer Rabab Raafat Boulos, bio- and e-methanol are among the most promising fuels to scale this decade, and the partnership with LONGi reflects this strategic focus on sustainable fuel options.
Amid delays in green methanol production and shifting carbon pricing in shipping, Maersk has been diversifying fuel sources, considering alternatives like LNG. In a recent investor call, Chief Executive Vincent Clerc explained the need to hedge technology investments and avoid single-source dependencies. Although the exact supply volume was not disclosed, Maersk noted that this addition helps secure fuel for its dual-fuel methanol fleet, which includes seven active vessels.
Currently, Maersk’s methanol agreements cover over half of the demand anticipated for its dual-fuel fleet by 2027. A separate agreement with China’s Goldwind last year secured up to 500,000 tonnes of green- and bio-methanol annually, with deliveries beginning in 2026. LONGi, a photovoltaic manufacturer based in Xi’an, will produce bio-methanol for Maersk’s fleet, meeting specific sustainability requirements that include a 65% reduction in greenhouse gas emissions compared to conventional fuels. Production will utilize agricultural residues at a new facility in Xu Chang, Henan province, which is expected to produce 120,000 tonnes annually by the end of 2030.
Emma Mazhari, Maersk’s head of energy markets, highlighted the momentum behind methanol projects across various markets, with China leading innovative developments in green energy production. Maersk, the first container line to commit to methanol as an alternative fuel, continues to engage globally with a range of emerging green fuel initiatives.
Get the best supply chain report news insights on The Supply Chain Report. Visit ADAMftd.com for free international trade tools.
#SustainableShipping #BioMethanol #GreenEnergy #SupplyChainInnovation #ChinaRenewables
