Danish shipping and logistics group A.P. Moller-Maersk and its majority owner A.P. Moller Holding have partnered to establish a company that will focus on producing green methanol. The venture, named C2X, has plans to undertake large-scale green methanol projects in Egypt near the Suez Canal, in Spain at the port of Huelva, and other locations.
Maersk and APMH have stated that the production of green methanol will vary depending on the specific location, with the ambitious target of achieving an annual production of 3 million metric tons by 2030.
Ownership of the project will be divided, with APMH holding an 80% stake and Maersk holding the remaining 20%. APMH has diverse interests including banking, infrastructure, and energy, in addition to shipping.
The utilization of green methanol as an alternative fuel choice for container ships has gained popularity due to its potential to reduce carbon dioxide emissions by 60% to 95% compared to traditional fossil fuels. Approximately 225 methanol dual-fuel ships have been ordered globally.
The announcement of the C2X venture coincided with the naming ceremony of Maersk's newest container vessel, the Laura Maersk. This vessel is the world's first green methanol powered cargo ship and is scheduled to operate on a loop from Northern Europe into the Baltic Sea. It will be supplied by Equinor, the Norwegian state-controlled oil and gas major, from this month until mid-2024. Maersk foresees its green methanol demand reaching 5 million metric tons by 2030, as an additional 25 green methanol powered ships are currently on order, with 19 expected to be in the ocean by 2025.
Reporting by Erik Papke; Editing by Eric Wieser and Jeff Barber