Maersk eyes first green methanol supply from China

Subject to a final investment decision, the project is likely to represent China’s first green methanol production facility when it comes on stream.  

The deal significantly de-risks the initial stages of Maersk’s net-zero journey and supports expectations for a competitive green methanol market towards 2030. The record-high volumes can annually propel more than half the methanol-enabled capacity Maersk currently has on order.

The volumes combine a mix of green bio-methanol and e-methanol, all produced utilising wind energy at a new production facility in Hinggan League, Northeast China, around 1000km northeast of Beijing. Production is expected to begin in 2026. Following this signed offtake agreement, Goldwind expects to confirm a final investment decision for the facility by the end of the year.

A.P. Moller-Maersk will take delivery of its first large ocean-going methanol-enabled vessel (16,000 TEU) in the first quarter of 2024 and is diligently working on sourcing solutions with a broad range of global partners for the entire vessel series being delivered in 2024-25.

The Motorship reported that Maersk’s parent company, A.P. Moller Holding (APMH), has agreed to take a stake in a new methanol production company, C2X, which is targeting annual output of over 3 million tonnes of green methanol per year by 2030. C2X is planning to develop large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain.

While the potential production sites cited will support bunkering to the west and east of the Mediterranean, the start-up is not expected to dedicate all of its production for Maersk’s maritime bunkering requirements in East Asia.