Maersk has signed a green methanol offtake agreement with Chinese clean energy specialist Goldwind.

The accord will see the Danish shipper purchase 500,000 tonnes on an annual basis for the first 12 large methanol-fuelled ships it has on order. Production is expected to begin in 2026.

The volumes combine a mix of green bio-methanol and e-methanol, all produced utilising wind energy at a new production facility in Hinggan League, Northeast China, around 1000km northeast of Beijing.

Following this signed offtake agreement, Goldwind expects to confirm a final investment decision for the facility by the end of the year.

According to Maersk, the agreed volumes will be able to annually propel more than half the methanol-enabled capacity it currently has on order, thus significantly de-risking its objective to reach net-zero greenhouse gas emissions by 2040, whilst also supporting expectations for a competitive green methanol market towards 2030.

"With this project, Goldwind will continue to explore the innovative application of new technologies, pursue the organic combination of green electricity and green fuel production, and optimize the production process of green methanol. Goldwind is committed to collaborating with companies involved in the green methanol industry, with the aim to make green methanol one of the most important and economically feasible clean maritime fuels in the future," said Wu Gang, chairman of Goldwind.

"We are encouraged by the agreement because its scale and price confirm our view that green methanol currently is the most viable low-emission solution for ocean shipping that can make a significant impact in this decade. The deal is a testament to the momentum and vast efforts we see among ambitious developers driving projects forward across geographies, however, we still have a long way to go in ensuring a global green fuels market that can enable the decarbonisation of global shipping," remarked Rabab Raafat Boulos, Chief Infrastructure Officer at A.P. Moller - Maersk.

Maersk is due to take delivery of its first large ocean-going methanol-enabled vessel (16,000 TEU) in the first quarter of 2024, and says it is working diligently on sourcing solutions with a range of global partners for the entire vessel series, scheduled for delivery in 2024-25.