The Maersk Gunde container ship docked at the Port of Oakland on June 24, 2024, in Oakland, California.
Justin Sullivan | Getty Images
SINGAPORE – Denmark-based shipping and logistics giant Maersk announced the Southeast Asian country’s latest dual-fuel methanol ship on Thursday as the industry ramps up its decarbonisation efforts.
The newly named AP Møller is a 350-meter vessel that adds to Maersk’s fleet of vessels that can run on methanol as well as traditional marine fuels.
Speaking to CNBC’s “Squawk Box Asia,” Maersk’s Asia-Pacific president, Ditlev Blicher, said the ship is the latest technology poised to decarbonize shipping.
“(This technology) allows the industry to move from black fuel or fossil fuel to what is called e-methanol, or green methanol, significantly reducing the carbon outlet for normal shipping,” he said.
Maersk generally defines green fuel as fuel with a minimum of 65% reduction in greenhouse gas emissions on a life cycle basis compared to a fossil reference fuel.
Although it is mostly produced from fossil fuels, methanol can also be made from renewable energy sources, according to the International Renewable Energy Agency.
Maersk says ships running on green methanol can save up to around 280 tons of CO2 per day, an important step in the company’s goal of achieving net-zero emissions by 2040.
Green methanol also has a lower sulfur content, reducing emissions of sulfur oxides, which contribute to air pollution and acid rain, according to the World Economic Forum.
Blicher said the AP Møller is Maersk’s ninth dual-fuel vessel out of an order of 25 planned for completion in 2027.
According to the company, just replacing 12 “normal” ships with large dual-fuel methanol ships like the AP Møller could save 1.5 million metric tons of CO2 – almost double the CO2 emissions produced by Copenhagen in 2022.
The future of shipping?
As the world’s largest maritime shipper, Maersk is an important trendsetter for global trade, with many other companies following suit in their adoption of methanol.
According to Blicher, about 170 dual-fuel methanol vessels have been ordered from across the industry, which helps scale up.
“Maersk, the industry and our client base are moving forward and investing in this technology,” said Blicher, noting that clients are increasingly trying to achieve their own decarbonisation goals.
Still, while building economies of scale is important, he believes more is needed to steer the industry away from the black fuel, with methanol offering higher production costs.
Blicher expects the tipping of these scales to come from regulations that disincentivize black fuel.
“We are talking about increasing the price of black fuel to ensure that the price of black fuel reflects the impact on the economy,” he said.
Singapore, the world’s largest bunkering port, has led various initiatives to promote sustainable shipping.
In a statement released Thursday, Singapore’s minister of state for law and transport, Murali Pillai, said AP Møller’s arrival reinforces the city-state’s commitment to reducing greenhouse gas emissions.
“We are happy to work with Maersk and look forward to their efforts to make Singapore the new maritime fuel hub,” he said.
In October, Maersk raised its full-year forecast after reporting strong third-quarter results, heavy demand and higher prices due to disruptions in the Red Sea. Revenue was $15.8 billion, up from $12.1 billion a year earlier.
