Maersk and its partners to establish pilot green methanol plant in Singapore

Six leading companies have formed a partnership that aims to establish Asia’s first green e-methanol plant which converts captured biogenic carbon dioxide (CO2) into green e-methanol, a low carbon fuel, that could enable a significant reduction in greenhouse gas emissions. The pilot plant will be set up in Singapore pending successful conclusion of feasibility studies by the end of 2022.

The six companies have signed a memorandum of understanding (MoU) on a Green Methanol Value Chain Collaboration that will explore the feasibility of establishing a green e-methanol pilot plant with a minimum production capacity of 50,000 tonnes per annum, the first of its kind in South East Asia.

The plant will convert captured biogenic carbon dioxide into green e-methanol, a low-carbon fuel that is being touted as one of the pathways to decarbonise shipping.

In a statement released on Wednesday, the consortium said the MoU marks a “pivotal step towards transforming captured biogenic CO2 and green hydrogen produced from renewable electricity into green e-methanol” and it will “make this low-carbon fuel commercially accessible for the maritime industry”.

The project plans to leverage Singapore’s hub port and research ecosystems to conduct feasibility studies and run bunkering trials on green e-methanol, which is described as potentially yielding a substantial carbon reduction impact for shipping.