A.P. Moller - Maersk (Maersk) has entered a green methanol partnership with U.S.-based project developer Carbon Sink LLC as part of its efforts to further decarbonise supply chains.

This is Maersk's 8th such agreement in the efforts to accelerate global production of green methanol.

Green methanol facility in the US

In a statement, Maersk announced that the parties signed a Letter of Intent covering the development by Carbon Sink of green methanol production facilities in the United States.

The first facility will be co-located with the Red River Energy existing bioethanol plant in Rosholt, South Dakota, USA, and will have a production capacity of approximately 100,000 tonnes per year. 

The commercial start is anticipated in 2027 and Maersk intends to purchase the full volume produced at the plant, with options for the output of subsequent Carbon Sink facilities at other locations. 

"Securing green fuels at scale in this decade is critical in our fleet decarbonisation efforts. We have set a 2040 net zero target for our entire business – but important to stay in line with the Paris Agreement, we have also set 2030 targets to ensure meaningful progress in this decade," said says Berit Hinnemann, head of green fuels sourcing, A.P. Moller - Maersk.

He added that partnerships are essential on this task as he lauded the Maersk's tie-up with Carbon Sink.

Carbon Sink uses commercially available technology to produce green methanol by combining green hydrogen from the electrolysis of water using additional renewable electricity and biogenic CO2.

The CO2 for the first project will be waste CO2 captured from the Red River Energy bioethanol plant, recycling those emissions into green methanol.

"We are very pleased to be working with Maersk in support of their mission to decarbonise the shipping sector ... Our multi-project development strategy creates a pathway for the supply of significant volumes of green methanol to help meet the demand of Maersk's growing dual-fuel ship fleet," said Steve Meyer, CEO of Carbon Sink.

Carbon Sink joins seven other strategic partners working to secure the green fuel needed for the 19 container vessels Maersk currently has on order which are capable of operating on green methanol.

In March, Maersk announced six partnerships with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel with the intent of sourcing at least 730,000 tonnes per year by the end of 2025.

The seventh partnership with Debo was added in August.