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Maersk Closes New Agreements in Egypt to Accelerate Methanol Production. The Companies Involved in the Agreement Are CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel.
The Danish maritime giant Maersk and Egyptian authorities signed a partnership agreement to jointly explore the establishment of large-scale production of green fuel in the country in the pursuit of zero-emission transport using methanol. With this production capacity, Maersk will reach far beyond the green methanol necessary for the first 12 carbon-neutral container ships ordered by the Danish group.
Understand All the Details About Maersk’s New Goal
Following the recent agreements for green fuel supply, Maersk signed a Memorandum of Understanding (MoU) with the representative of the authorities in the presence of the Egyptian Prime Minister on Monday, March 28.
Now, the company is joining forces with the Suez Canal Economic Zone Authority (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Egyptian Sovereign Fund for Investment and Development (TSF). As part of the agreement, the parties will conduct a feasibility study before the end of 2022 to examine the production of hydrogen and green marine fuel in Egypt, powered by renewable energy with Maersk as a committed buyer.
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Commenting on the partnership, Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, Maersk, said: “Egypt has excellent conditions for renewable energy production and ambitions to become a global leader in the green energy value chain. We are very excited to explore options together, leveraging our over 100 years of business relationships in the country.
“The availability of green energy and fuel in sufficient quantities and at competitive prices is the biggest challenge for the decarbonization of global shipping. For Maersk, our recently announced strategic partnerships with six leading companies in the sector are essential to tackle this challenge, but to stay on the 1.5-degree path, even more scale is needed this decade. That’s what this partnership is exploring.”
Vessels Will Be Able to Make a Complete Round Trip, Similar to the Asia-Europe Route, Using Green Methanol
The series, built by Hyundai Heavy Industries, features an innovative dual-fuel engine configuration that can operate on methanol and low-sulfur conventional fuel. With fuel capacity, the vessels will be able to make a complete round trip, similar to the Asia-Europe route, using green methanol. The first vessel is scheduled to enter operations in early 2024.
“We expect to take these vessels across the world’s oceans and continue our work in creating new solutions to enhance the efficiency of our customers’ future supply chains,” highlights Maersk.
Maersk’s Methanol Production Partnerships May Expand Services in the Suez Canal
According to Ayman Soliman, CEO of the Egyptian Sovereign Fund, this partnership is an opportunity that adds a new dimension to the roadmap for zero emissions goals and potentially expands the service offerings of the Suez Canal.
Looking ahead, Maersk intends to explore similar opportunities in other regions with strong potential for renewable energy development, leveraging business and government relations to facilitate opportunities for nations and commercial actors to adopt rapid acceleration in methanol production.
To recall, earlier this month, Maersk closed agreements with Danish energy company Ørsted, Swiss integrated energy company Proman, Danish solar energy equipment supplier European Energy, China’s Green Technology Bank, China’s engineering services firm CIMC Enric, and U.S. renewable fuel producer WasteFuel.
Partnership Promises to Supply the Company’s 12 Ships
These strategic partnerships have been formed to ensure the supply of methanol for the company’s fleet of twelve new ships powered by green fuel. Maersk plans to supply at least 730,000 tons/year by the end of 2025 for a total of twelve boxships of 16,000 TEU ordered in 2021 from South Korean shipbuilder Hyundai Heavy Industries (HHI).
The first methanol-powered unit is planned to be delivered to Maersk in 2024. As described, the new series of ships will have energy efficiency 20% better per container transported compared to the industry average. They will measure 350 meters long, 53.5 meters wide, and will be significantly different from what has been seen before for any larger container ships, the company states.
The methanol propulsion configuration will be developed in collaboration with manufacturers such as MAN ES, Hyundai (Himsen), and Alfa Laval, representing a significant technological leap from the previous size limit of around 2,000 TEU.
The new eco-friendly constructions will be classified by the American Bureau of Shipping (ABS) and will sail under the Danish flag. Once fully implemented, the twelve ships are expected to generate a total annual CO2 emissions savings of 1.5 million tons or 4.5% of the total emissions of Maersk’s fleet.
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