A.P. Moller-Maersk (Maersk) has signed a Memorandum of Understanding (MoU) with Shanghai International Port Group (SIPG) on strategic cooperation for Shanghai port’s methanol marine fuel project.

The two parties will collaborate to explore green methanol fuel vessel-to-vessel bunkering operations after Maersk’s green methanol container vessels arrive in 2024.

Maersk and SIPG will deepen cooperation in stages, according to the shipping company.

In the first phase, SIPG, as Maersk’s potential energy bunkering service provider, will carry out services of vessel-to-vessel bunkering and fuel tank storage at the port.

In the potential second stage, the parties will explore how to form an all-round energy strategic partnership to promote the extension from bunkering services to the upstream of the green methanol industry chain.

Maersk has set a net-zero emissions target for 2040 across the entire business, and the delivery and operation of its 19 vessels – with dual-fuel engines that are able to operate on green methanol – is expected to accelerate the evolution of climate neutral shipping.

Maersk reported that establishing port bunkering infrastructure for methanol is thus imperative to achieve this goal.

“We are very pleased to form the partnership with SIPG, leveraging its strong capabilities in bunkering service and port operation,” said Vincent Clerc, CEO of Maersk.

“Through joint efforts, we can provide low-carbon logistics service for our customers, also contributing to China’s pledge to be carbon neutral by 2060.

“Meanwhile, we also endeavour to cultivate synergies with SIPG and fuel manufacturers to optimise fuel infrastructure efficiencies.”

The agreement will also support the aspiration of Shanghai port to become one of the world’s first commercial green methanol refuelling points, according to the Danish giant.

Chairman of Shanghai International Port Group, Gu Jinshan, said: “As the demand for sustainable fuels increase, establishing the green fuel bunkering service will be another milestone for SIPG, improving port services and enhancing the competitiveness of Shanghai port, in a bid to transform the company into a low-carbon and eco-friendly energy hub in Asia Pacific.”

In August 2022, Maersk signed a new partnership with Chinese bioenergy enterprise Debo to boost global green methanol production capacity.

More recently in January 2023, Maersk Growth announced an investment in Berlin-based, C1 Green Chemicals AG, a firm specialising in producing green methanol.