A.P. Moller – Maersk and SunGas Renewables sign strategic partnership for green methanol

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Continuing its efforts to decarbonize its customers’ supply chains, A.P. Moller – Maersk (Maersk) has signed a letter of intent (LOI) with SunGas Renewables for the supply of green methanol. The partnership is the ninth of its kind as Maersk seeks to accelerate the international production of green methanol as a fuel.

The LOI covers the production of green methanol by SunGas at several sites that the company is planning to develop across the USA. The first facility is scheduled to start operations in 2026 with an estimated annual production capacity of 390,000 tons. Maersk intends to offtake full volumes of green methanol from each site.

“Securing green marine fuels at a global scale within this decade will require rapid scale-up of green methanol production capacity using a variety of technology and feedstock pathways,” commented Emma Mazhari, head of green sourcing and portfolio management at Maersk. “We are very pleased to welcome SunGas Renewables as a strategic partner in our efforts to achieve our goal of net zero greenhouse gas emissions in 2040 across our entire business, and to ensure meaningful progress is made within this decade in line with the Paris Agreement.”

“The SunGas facilities will utilize the flagship System 1000 platform to convert sustainably sourced residues from the forestry and wood products industries into green methanol,” said Robert Rigdon, CEO of SunGas. “Our partnership with Maersk marks an important milestone for SunGas as we continue our mission to make a global impact in the energy transition. We applaud Maersk’s leadership in catalyzing decarbonization of the entire marine shipping industry and look forward to working together to accelerate the growth of production capacity for green methanol marine fuels.”

SunGas joins eight other strategic partners: Carbon Sink, CIMC ENRIC, Debo, European Energy, Green Technology Bank, Orsted, Proman and Wastefuel. Each partner is working to provide green fuel for 19 methanol-enabled container vessels that Maersk has on order.

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After spending six years working as a mechanic for various motorsport and high-end performance car companies, Callum joined UKi Media & Events in February 2020 as an assistant editor. In this role he uses his vast practical knowledge and passion for automotive to produce informative news pieces for multiple vehicle-related sectors.

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