MAERSK, CARBON SINK SIGN GREEN MARINE FUELS PRODUCTION DEAL

A.P. Moller – Maersk (Maersk) has entered a green methanol

partnership with US-based project developer Carbon Sink LLC.

This is Maersk’s eighth such agreement in a bid to accelerate global

production of green methanol.

The parties have signed a Letter of Intent covering the development by

Carbon Sink of green methanol production facilities in the US.

The first facility will be co-located with the Red River Energy existing

bioethanol plant in Rosholt, South Dakota, 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,” said Berit Hinnemann, Head of Green Fuels Sourcing,

Maersk.

“We have set a 2040 net zero target for our entire business – but

importantly to stay in line with the Paris Agreement, we have also set 2030

targets to ensure meaningful progress in this decade.”

Carbon Sink uses a commercially available technology to produce green

methanol by combining green hydrogen from 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 bio-ethanol 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,” said Steve Meyer, CEO of Carbon Sink.

“Carbon Sink brings a vast wealth of knowledge, experience and partnerships

to help them achieve their ambitious corporate goals.

“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.”

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.

Maersk Performance Team recently installed two new electric vehicle (EV)

charging stations in Los Angeles County.

The stations will serve the current fleet of 24 EV trucks and 36 in total

by the end of year.