Maersk to produce green methanol in Spain

A.P. Moller – Maersk is looking to produce up to 2m tonnes of green methanol a year in Spain by 2030 to supply fuel for its containerships and slash its carbon footprint.

The world’s second-largest liner has agreed with the Spanish government to explore the opportunities for large-scale plants in the ports of Andalusia and Galicia. The deal was signed in Madrid by Maersk CEO Søren Skou and Prime Minister Pedro Sanchez.

The project would cover the full value chain, from renewable energy production of some 4 GW to bunkering of vessels. Spain said the move would require an investment of about €10bn ($9.75bn) with the potential to generate up to around 85,000 direct and indirect jobs.

Maersk has 19 dual-fuel e-methanol ships set to enter the market between 2023 and 2025, which will require around 750,000 tonnes of the fuel. The carrier has already secured the volumes needed to meet the demands of these initial vessels through seven strategic partnerships formed earlier this year.

The company said it needs around 6m tonnes of green methanol per year to reach its 2030 fleet emissions milestone target and even larger amounts by 2040 for its fleet to reach net zero.

The project in Spain, which has support from EU recovery funds, is expected to start in the second half of 2024 and is currently in the process of fixing financing from banks and investors.

The parties have carried out a preliminary study on the competitiveness of the project and will now work on a final report by the middle of next year. The development is planned in three phases, with an initial 200,000 tonnes of green methanol being reached in 2025, increasing production to 1m tonnes in 2027 and ultimately 2m tonnes by 2030.