Logistics giant and and Carbon Sink sign strategic partnership to accelerate green marine fuels production

Maersk Line vessel

AP Moller-Maersk has entered a green methanol partnership with US-based project developer Carbon Sink, as part of its strategy to decarbonise its customers’ supply chains.

According to Maersk, it marks its eighth such agreement in its efforts to accelerate global production of green methanol.

The companies 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 expected in 2027 and Maersk said that it intended 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 at 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,” Hinnemann noted. ”Partnerships are essential on this journey – and I am very pleased to welcome Carbon Sink on board.”

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,” he outlined. ”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.

In March, Maersk announced six partnerships with CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel with the intent of sourcing at least 730,000 tonnes per year by the end of 2025. A seventh partnership with Debo was added in August.